Deciding Your Sales Strategy: Exploring the Pros and Cons of Selling on Your Own D2C Website vs. Marketplaces in India.

Before we get into exploring the pros and cons of selling on marketplace vs own website, let’s explore the ecommerce sector.

With the rise of the internet, businesses have revolutionized themselves by taking their business online through multiple channels such as marketplaces, their own social media handles or their own D2C website.

Many businesses face the dilemma whether to sell on their own website or leverage popular online marketplaces.

Well, luckily this blog focuses on 2 things, as a D2C brand where should you sell – your own website or on marketplaces like Amazon?

To understand that, let’s look at the pros and cons that is offered to us on marketplaces vs own website:

Pros of Selling on Online Marketplaces:

  1. Wider Reach:

Due to increased popularity among youngsters, millions of Indians frequently visit these online stores to make purchases. For those who just started off, gaining visibility among such a vast market can pose a challenge in the initial stages. This can help you reach a wider audience which would otherwise not be possible with an offline store or your own D2C ecommerce site.

  • Less Technical Hassels:

Major players in the global ecommerce space such as Amazon and Flipkart consist of effective technical teams that are responsible for managing their digital platforms. These marketplaces experience minimal technical issues and possess the ability to handle substantial traffic at any given time. Opting to sell on these platforms helps you save time and money which would otherwise be spent on fixing technical issues on your site. It doesn’t require you to invest in a big team to manage your online store.

Pros of Selling on your own D2C Website:

  1. Direct Access to Consumer Data:

Having your own website allows you to access first hand customer data which allows you to understand your customers, their preferences and how they interact with your products and services. This allows you to build and offer more personalized offers, optimize existing products and also give a boost to your marketing efforts.

  • Complete Control over the Platform:

Having your own D2C website allows you to have complete control over the content and how you present your content to your audience and the kind of shopping experience you offer. This allows manufacturers to strategically narrate their brand story, craft bullet points, showcase imagery, etc. Additionally, this level of control helps enhance shopping experience where manufacturers not only design websites but also can deliver a seamless customer experience.

Cons of Selling on Online Marketplace:

  1. High Competition:

There are multiple sellers out there, for example Amazon vs. Flipkart, in the market who offer similar product catalogs, this forces retailers to provide discounts and give out freebies to increase sales and revenue traction. This heightened challenge for new business and startups who are trying to make a mark in the industry. Thus small businesses find it difficult to expand their sales due to tight competition.

  • Payment Delays:

In offline sales, the payment is immediately cleared whereas in online business, there is a delay in crediting funds to the seller’s account. It takes days for the seller to receive the payment of the products sold as it first goes to the marketplace, where service charges and tax deductions are done before the final payment is transferred to the seller. Such long payment cycles may create problems for small businesses owners as they are in need of consistent cash flow to effectively manage their operations.

Cons of Selling on your own D2C Website:

  1. Need for Variety of Skills:

A comprehensive knowledge in several fields is crucial for the success of D2C brands. It requires you to have a profound understanding of marketing to be able to promote your products effectively within the market. Having a comprehensive understanding of marketing, web development, customer service and production processes is fundamental for the success of D2C Brands.

  • Supply Chain Hassles:

A brand that manufactures its own products, runs into the possibility of encountering stock challenges. This can arise due to various reasons such as market fluctuations, supply chain disruptions, or delayed production of products. The production process may be susceptible to delays due to weather changes, quality control, etc resulting in delayed availability of products which can potentially lead to loss of customers.

In conclusion, deciding where to sell as a D2C brand involves careful consideration of the pros and cons associated with online marketplaces like Amazon and maintaining your own website. While online marketplaces offer a broader reach, technical support, customer trust, exceptional customer service, and streamlined shipping management, they come with drawbacks such as high competition, payment delays, and significant commissions. Additionally, the product often takes control over the brand on these platforms. On the other hand, selling on your own D2C website provides greater control over branding and customer experience, but it may require substantial investment in marketing and technical aspects. Ultimately, the choice depends on the specific goals, resources, and preferences of the brand. It’s essential to strike a balance that aligns with the brand’s vision and long-term objectives to achieve success in the dynamic e-commerce landscape.

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