Starting an online store doesn’t have to be difficult, but there are a few things to know before you can launch. There are also a lot of options for ways to start an online store which can complicate the process or become frustrating to a new business owner.
This blog will discuss the ins and outs of starting an online store, the best options for your business style, and how you can be successful.
Let’s begin!
WHAT IS AN ONLINE STORE?
An online store is a place where people on the internet can examine your products or services and make a purchase. Customers can book your services or have products arranged for pickup or delivery, all from the comfort and convenience of a laptop computer or digital device.
Many businesses have an online-only store, while many others have a physical presence and an online store. Even small family-owned businesses can benefit from having a digital version of their store that can reach a greater audience.
Online stores can also continue to make money after regular store hours, making it a great way to boost sales.
THIRD-PARTY MARKETPLACES AND THIRD-PARTY PLATFORMS VS. RUNNING YOUR ONLINE STORE
In this blog, we will be talking about how to open an online store for your business. There are two major options for doing this. You can either make your online store using a website builder or you can use an already established online third-party marketplace.
Many small businesses prefer to use online third-party marketplaces to sell their goods. Other businesses that sell vintage or handmade products may prefer to use online third-party sites.
There are advantages to selling online using third-party platforms. However, some businesses choose to have the freedom to run their store how they want, without having to adhere to the rules and regulations of third-party sites. DMA Gives you a fully branded self-owned and branded platform. To help you choose which option might be best for your online store, here are some pros and cons for both methods.
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Pros and Cons of Using an Online Third-party Marketplace
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The pros of using an online third-party marketplace are:
You won’t have to worry about online security issues for your customers like credit card fraud or identity theft when you’re not responsible for the transactions. When you use DMA Website hosting and design, we take care of the security of your website.
Third-party platforms already have a large customer base and when you sell through their platforms, you are potentially given access to those people. At DMA we expose your website to millions of potential customers and associates within our private community. This community will give you professional opinions and reviews of your business. This powerful for getting you in front of millions of views.
Using a third-party marketplace is very easy to do and requires very little effort as far as software and maintenance are concerned. At DMA we take care of the maintenance and security updates monthly. You will still need to market your business well and provide quality images, but you won’t have to worry about website design or many other details. DMA offer marketing packages at great discount for being a website hosting client.
Your fees generally remain the same. Third-party marketplaces will charge a fee when you sell products, and in some cases also charge a small listing fee. Although you do have to pay these fees, they’re consistent and you know what to expect each time. At DMA we don’t charge you when you make sales through your store, which you have built with our services. You keep 100% of the revenue you make.
The cons of using an online third-party marketplace are:
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1. Limited customization -
2. Listing/Selling fees -
3. Regulations & Rules -
4. Negative feedback -
5. Marketplaces tend to favor customers
You have little control over how your products are displayed to the customers and no control over the overall design of the site.
Everything sold on a third-party marketplace is a shared profit with the owner of the third-party marketplace, so you never keep 100% of your profits.
An online third-party marketplace has total control over your online store. That means that you may lose your store or suffer a loss of sales if you accidentally go against a rule.
Negative feedback might ruin your business. People who sell through third-party marketplaces rely heavily on good feedback to keep gaining customers.
- In one way, this is good as it pushes businesses and sellers to create the best customer service experience possible.
- On the other hand, there are times when a customer won’t be satisfied no matter how hard the seller tries. In these instances, a few bad reviews can negatively impact the seller and may put them at risk of being banned or blacklisted. With your business platform at DMA, you will have 100% control over the review and authorization of how you handle reviews to your platform.
Online third-party marketplaces tend to favor customers. A customer’s experience is highly important, but when you run your own business with DMA, you can determine when a customer is being unreasonable.
- If you’re running your business through a third-party site, these disputes can often be more difficult to settle, especially in your favor. DMA makes this process very simple for you.
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Pros and Cons of Using an eCommerce Website Builder
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The pros of choosing an eCommerce website builder instead of joining an online third-party marketplace are:
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1. Control Design -
2. Keep Profits -
3. Scale Your Business -
Account Suspended -
5. Develop Brand Loyalty -
Features On Your Websites
When you sell on a third-party marketplace, you have limited design control. You may be able to change a few things on your marketplace page, but the overall design will be consistent with the third-party marketplace.
You keep all your profits. You won’t need to calculate the cost of each item based on how much the third-party marketplace will take from your sales each time. However, this is not true if you’re using a website-building platform or a payment gateway that charges a fee per transaction.
Easier to scale your business. An online business run through an eCommerce platform is easier to scale than a business that is run through a third-party marketplace like Amazon or Etsy.
Your account can get suspended. When you sell on an online third-party marketplace, you must adhere to their rules and regulations, and there is a potential your account may be suspended.
Easier to develop brand loyalty. In a third-party marketplace, you may be one of a lot of people competing for a similar market. They could search for “handmade candles” and have thousands of results, whereas if you can build a customer base on your website, your customers will only see your products. This is our goal here at DMA for your business.
Include other features on your websites. Using an eCommerce website builder allows you to have other features available to you.
- For instance, you can include an email opt-in on your website that collects emails for promotions or newsletters. You can also include a blog that shares helpful information with your customers and attracts new people to your website through search engines. At DMA we literally can build you an entire CRM system in the back office for your access to run your entire business.
The Cons of using an eCommerce website builder:
Some website builders require you to supply your security. We DON’T! We handle all that for you here at DMA. If you choose to use WordPress to build your online store, you must take care of the security of your website yourself. This is where we come in at DMA. We handle that for you. This is normally done by paying for an additional program. With DMA you pay nothing extra outside your monthly maintenance and security update, as part of your monthly hosting cost. This is where we greatly differ from other providers.
The cost will vary. The cost to run your own business through an eCommerce platform will not be as consistent as it will be with an online third-party marketplace. You may pay more to run your website than you will from selling on an online third-party marketplace, and some eCommerce platforms charge a fee for each transaction.
It may take longer to draw in customers. With an online third-party marketplace, you must compete with others in your industry. You also have access to a large pool of customers who trust the third-party marketplace and are willing to purchase it.
DMA Final Thoughts
For the sake of this blog, we will be focusing primarily on running an online store through an eCommerce website builder like DMA WordPress.
Although there are many advantages to using online third-party marketplaces, the process is relatively straightforward. Using DMA website services can be a smooth process but also has the potential to provide bigger rewards.
For that reason, we will use this blog to tell you how to start your online business using our services and beginning from scratch.
We are excited to announce the upcoming release of an 8-part series on How to Start an Online Store for Your Business. This blog series will provide valuable insights into our consulting process, guiding you from the initial idea to the successful launch of your online store. Be sure to check back regularly as we are working diligently to publish the blog series. Thank you for your interest and stay tuned for more information.
