Amazon/Meesho Marketplace vs E-commerce Website: Which is better?

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By Admin . February 23, 2024

2Min Read

Selling products online is getting popular and profitable in India and abroad. While Amazon and Meesho are famous for connecting sellers with customers to help them sell online, having your own website gives control over your brand and customer experience. This blog explores the features, benefits, and drawbacks of Amazon and Meesho marketplaces.

 

What is the difference between a website and a marketplace?

 

A website and a marketplace are two different platforms for selling products or services online directly to customers.

 

A website is a platform that you create and manage on your own. It allows you to establish a brand experience, customize your marketing strategies and have full control over your business operations. With a website, you can build a loyal customer base and adapt to the changing needs of your business.

 

Whereas, a marketplace is an online platform where multiple sellers come together to sell their products or services. Known marketplaces include Amazon, eBay and Etsy. These platforms provide an opportunity for sellers to showcase their offerings to customers by leveraging the vast customer base and user friendly interfaces they offer.

 

Understanding Online Marketplaces: Amazon and Meesho

 

When it comes to selling products in India, there are two popular platforms; Amazon and Meesho. Selling on Amazon involves creating an account, listing your products and managing the fulfillment of orders. In summary both Amazon and Meesho offer advantages for sellers looking to expand their reach in Indias online marketplaces.

Why Do People Sell on Amazon?

 

 

So why do people choose to sell on Amazon? Well one of the reasons is the opportunity to reach millions of potential customers in India and abroad. With a customer base and a strong reputation Amazon provides sellers with a significant advantage. Additionally Amazon’s search engine helps sellers increase their visibility by connecting them with potential buyers.

Benefits of Selling on Meesho

 

 

Meesho is more than an online marketplace; it’s a social commerce platform that offers unique benefits. One advantage is the ability to target audiences based on their social media preferences and buying patterns. This targeted marketing approach helps sellers reach their customers more effectively. Furthermore, selling on Meesho can result in profit margins due to lower competition, in specific product categories.

Disadvantages of selling on marketplace platforms

 

Sellers have the opportunity to set prices for their products and maximize their profits. However there are some drawbacks to consider when selling on marketplace platforms like Amazon and Meesho.

  • Lack of Brand and Marketing Control: These platforms may overshadow your brand making it difficult to establish an identity. Additionally you may not have control over marketing efforts, which can impact reaching your target audience effectively.
  • Very High Competition: The high level of competition from sellers offering similar products can make it challenging to stand out and maintain competitive pricing affecting profit margins.
  • High Marketplace Fees: Marketplace fees such as fulfillment fees can eat into your revenue ranging from 5% to 25% when selling on Amazon in India.
  • Lack of Personal Customer Support: Lastly providing support for customer inquiries and issue resolution can be a challenge for third party sellers who lack personal customer support.

Does Having an E-commerce Website Makes Sense?

 

Considering what a marketplace has to offer with disadvantages it carries, it’s worth exploring the idea of building your e-commerce website as it gives you complete control over your brand, customer experience and product offerings.

Furthermore with a custom website you have the flexibility to tailor every aspect of it from the design to the product listings. This ensures that your online store has a touch and offers exceptional customer service. Another advantage is that you can control the pricing.

Unlike marketplaces that charge selling fees and other miscellaneous expenses with your website you have the freedom to set prices as per your business strategy. This allows for pricing and maximizes profit margins.

In addition, having your own website gives you access to customer data. This data helps in understanding customer preferences, shopping habits and demographics. With insights at hand tailored marketing strategies can be implemented for personalized shopping experiences.

Why Are E-Commerce Websites Better Than Marketplaces?

Direct Customer Access

 

By having your e-commerce website you gain direct access to customers which enables personalized engagement and relationship building. This personal touch plays a role in fostering customer loyalty leading to long term success.

Control Over Branding

 

Having control over branding is another advantage of owning your own website. You can shape your brand image while ensuring an optimal customer experience by carefully selecting products.

Platform Restrictions

 

When selling on platforms like Amazon or Meesho, you must follow their rules and regulations, which can limit your control over your business. This becomes a challenge for brands who want to grow over other competitors.

Things to consider while choosing marketplace or ecommerce website

 

Business Goals Before making a decision it’s crucial to take into account your long term business goals and the resources you have. As your business scales, managing a marketplace can become expensive making your website the primary income source.

Access vs. Control: Marketplaces like Amazon or Meesho offer quick access to a large customer base, which can be beneficial for businesses aiming to boost sales rapidly. However having your own website provides control and customization options allowing for a tailored customer experience that can lead to sustained success.

Long Term Success: Building a customer base and implementing personalized marketing strategies are key factors for long term success in e-commerce business. With your website you have the flexibility to adopt this personalized approach fostering increased customer loyalty and repeat business.

To make any decision related to your business, it’s important to evaluate your business goals. Thus these points become key factors in making any decision for the future.

Let Zupain help you build your own ecommerce website

 

Creating an ecommerce website on your own might seem daunting at first. Platforms like Zupain can simplify the process for you. Zupain offers user ecommerce platforms that come with website builders, design templates and shopping cart functionalities. With Zupains help you can establish an online presence and create an attractive ecommerce store to reach a wider audience. Their website building solutions are designed to support business owners. Whether they’re newcomers to selling or seeking enhancements, for their existing online store contact Zupain and set free of these hassles and focus on growing your business.

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