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Online consumerism is huge. If you are a seller having your products sold online in places like Amazon, eBay or even Etsy can be huge for a small business. Today, we thought we’d walk through the pros and cons of becoming a marketplace merchant.

Pros

Pros of being a marketplace merchant

New Customers

Typically the average customer will peruse websites like Amazon, or eBay looking more for a specific item versus a particular store. The great thing about selling your items on a marketplace is that you can easily acquire new customers due to the massive amounts of people shopping on these types of sites. Having excellent customer service and prompt shipping will help ensure you keep customers coming back.

Credibility

Becoming a marketplace merchant gives you almost instant credibility. Since the marketplace handles the transaction, all the seller has to do is ship the item. This provides the customer with more ease when shopping with a new online merchant.

Increase in Sales

Because the customer base is so large, that means higher sales. That is probably the best reason to become a marketplace merchant with places like Amazon, eBay or Etsy. They have millions of people visiting their sites every day.

Cons

Cons of being a marketplace merchant

Fees

Selling on a marketplace means that you will be paying fees. Usually, you’ll spend some listing fee and then possibly a percentage of the sale. Before you become a market place merchant, you’ll want to make sure the numbers add up. Make sure you calculate what you’ll sell your item for, subtract your fees, and see what your actual profit is. In some cases, it may just not end up.

Competition

Marketplaces can have some stiff competition. That can make selling your profit challenging. You’ll want to either make your product stand out or your policies. Perhaps offer free shipping or same day shipping. Think about ways you can make your product stand out in a sea of other products.

Limited Communication

Marketplace merchants such as Amazon view their customer base as theirs, not yours. This can make acquiring new emails very challenging. Often time’s rules are in place that dictates how you can communicate with customers and what you can or cannot include in their packages. This can make it challenging for customers to view you as a brand.

So there you have it. The pros and cons of becoming an online marketplace merchant make sure and comment below if you’ve had experience selling a product with a marketplace. We’d love to know your experience!