On the last episode of The Pursuit of Relevance, we talked about breaking away from ecommerce marketplaces (like Amazon, Etsy, Ebay) to sell on your own website.
But is that the right answer for everyone?
There are so many choices on what to sell and where. Today, we’re diving in to the pro’s and con’s of selling on your own website vs marketplaces.
- How to offset the lost brand recognition marketplaces provide when you sell on your own site
- How to make sure your that your marketing costs doesn’t exceed your profits
- What you should do if your product mix doesn’t translate well into repeat business
- How to evaluate all the ecommerce platforms out there.
- Inbound Ecommerce
- How To Choose A Profitable eCommerce Business Idea
- What To Sell On Amazon: 11 Simple Ways To Find Products That Sell
Takeaways and Tweetables
[clickToTweet tweet=”When you sell on Amazon you pay to help them figure out the profitable products @Mallikarjunan” quote=”By selling on Amazon you are getting some revenue. But really what you are doing is paying Amazon for the privilege of helping them figure out what are good, profitable products for them to focus on. – Sam (1:35)”]
[clickToTweet tweet=”When you sell on Amazon, you have no ability to upsell, cross sell, resell. – @Mallikarjunan ” quote=”You have no ability to upsell, cross sell, resell. If somebody buys from you on Amazon. They can and likely will send them a follow up email trying to sell one of your competitors’ products. – Sam (3:20)”]
[clickToTweet tweet=”A pro to selling on marketplace websites is time to revenue. @Mallikarjunan ” quote=”A pro to selling on marketplace websites is time to revenue. The time to value is really fast. SEO, PPC and Content marketing can take 1 month to 1 year to generate revenue. (3:45) “]
[clickToTweet tweet=”The right answer for everyone is not go launch your own site & take on Amazon. @Mallikarjunan” quote=”The right answer for everyone is not go launch your own website and create an inbound marketing campaign to compete against marketplaces. There are plenty of people for whom the right answer is to sell on Etsy. – Sam (6:33) “]
[clickToTweet tweet=”A customer centric company understands lifetime value & acquisition costs. @Mallikarjunan ” quote=”The base unit of a customer centric company is understanding customer lifetime value and customer acquisition costs. (10:32) “]
[clickToTweet tweet=”If you want to build a growth business focus on owning a persona. – @Mallikarjunan ” quote=”If you want to build a growth business….Instead of owning a product vertical with catalog depth and diversity, focus on owning a persona. – Sam (11:05)”]
[clickToTweet tweet=”Maximizing LTV of a customer is usually based on catalog width, not depth. – Sam (12:15)” quote=”If you’re looking at the LTV of a customer, you’re ability to upsell, cross sell and resell is usually going to be based on catalog width, not depth. – Sam (12:15)”]
How to evaluate all the ecommerce platforms out there?
The weird answer I always give is: if you’re not building the website yourself and using a developer, use whatever they are comfortable with. If you have a developer that you have a good relationship with, that is rarer thing to accomplish than finding an ecommerce platform that exactly meets your needs. – Sam (16:00)