ECommerce Platform Vs Marketplace: Which Should Small Businesses Choose?
Singapore is one of the world's fastest-growing eCommerce economies. Many changes have occurred in the eCommerce and digital advertising industries in recent years, allowing business owners to transition from physical to online selling.
It is natural that digital transformation has become more widespread. The coronavirus pandemic had an impact on how businesses used to operate. As a result, many firms have decided to shift digitally to boost earnings, using digital channels and digital methods.
The amount of money spent on the internet has increased dramatically. As it is more convenient, many people prefer to buy their things online. Small businesses can take advantage of this shift in customer behaviour to expand. If you want to ensure that your business and income are not impacted because of this trend, eCommerce may be the way to go.
The Importance of ECommerce For Small Businesses
Small businesses have suffered the most as a result of the pandemic. Despite the fact that the economy is growing, the impact on small enterprises is evident.
Small businesses in Singapore can rely on eCommerce and SEO techniques to meet their needs and boost profitability. You can do the following things:
Build online reputation
Join a more diverse merchant base
Engage with customers more efficiently
Handle operations remotely
Manage your finances remotely
Invest in advanced software
Furthermore, owning a physical shop is costly. You must also include your employees' salaries and benefits, electricity costs, goods, and space. There's no need to be worried about that with eCommerce. You can lower your operational costs if you decide to convert your small business to an eCommerce store. Starting a business online also carries less risk, making it a fantastic method for newcomers to get a feel for the customer base.
You have two options when starting such a business: selling on an online marketplace or using an eCommerce platform. Both of these options are slightly distinct from one another and have their own set of advantages and disadvantages.
ECommerce Platforms
In Singapore, an eCommerce platform is a service that provides merchants with a variety of tools and solutions for running their business. It is a highly recommended choice for starting an online business due to its extensive capabilities. Small business owners can use it as an extension of their physical storefront or utilize it to conduct all of their operations digitally.
Shopify
Shopify, which was founded in 2006, is currently one of the most popular eCommerce platforms in the world. Shopify currently has over 3.88 million live websites, which is a testament to the company's reputation in the space.
Shopify is a standalone eCommerce platform that includes social media integrations, reporting, analytics, and SEO. Shopify is an excellent starting point for beginners who want to get into eCommerce because of its ease of use. Shopify also has a plethora of gorgeous themes to choose from, allowing you to personalize your website any way you like.
Pros & Cons Of Ecommerce Platforms
Pro #1: Complete Control Over Your Website
You have complete control over everything. Your website can be customized and optimized in any way that is most beneficial to your company. Having a wide range of options is critical for a successful eCommerce business. One of the many objectives of customizing your online business, for example, is to improve customer experience, which will lead to a higher conversion rate and lower bounce rate.
Furthermore, having complete control over your website allows you to create a business that is truly distinctive and distinct from others. To establish your trust, you can concentrate on developing your brand identity.
Pro #2: No Competition On The Same Platform
Only you can sell on your eCommerce platform. Use this to your advantage by showing your top products on your online store without having to compete with other vendors. Concentrate on improving your SEO rankings so that potential clients can find your website.
Pro #3: Many Features
ECommerce platforms provide a variety of options for managing your store. Sign up for or subscribe to your preferred platform to take advantage of a variety of features that will help you attract customers, display your products, and boost your SEO rankings. Each platform is different from the others. Shopify, for example, offers customer support 24 hours a day, seven days a week, while Wix offers free templates. WordPress, on the other hand, has thousands of plugins.
Con #1: Expensive
It might be costly to gain access to an eCommerce platform, especially if you demand advanced functionality. Even though some systems are free, you won't be able to use their high-tier versions unless you pay for an upgrade.
Con #2: Difficult
Although platforms such as Shopify are user-friendly, some complex features may take some time to grasp, and others may need technical coding abilities that necessitate the assistance of a professional.
Online Marketplaces
An online marketplace is where merchants may set up shop and sell their products all on one platform. It is offered by an operator who facilitates the exchange of goods and services between consumers and retailers.
Marketplaces, unlike eCommerce platforms, are made up of a variety of sellers, ranging from wholesalers and merchants to privately owned enterprises. Additionally, selling your things on a marketplace is significantly easier than constructing a website.
Lazada
Lazada is a popular marketplace in Southeast Asia. You can purchase a wide range of products here, ranging from fashion and technology to healthcare and housewares. Lazada is a highly recommended site to start a business. Lazada's website receives over 10 million monthly visits. Simply by selecting Lazada as your preferred marketplace and leveraging SEO, you can instantly connect with millions of potential buyers.
Shopee
Shopee commenced operations in Singapore in 2015 and has since expanded to Malaysia, Taiwan, Thailand, Indonesia, Vietnam, Columbia, Brazil, Mexico, and the Philippines.
Shopee established itself as a prominent online marketplace by becoming a mobile-centric, app-based platform. If you want to attract mobile users, Shopee's mobile-friendly interface is the ideal solution for your business. Shopee is a great starting point if you want to boost your online presence in a marketplace. Shopee’s search engine considers SEO and your store performance key factors when displaying your products to customers.
Pros & Cons Of Online Marketplaces
Pro #1: Existing Customers On Online Marketplaces
Many Singaporeans choose to shop for quality products on eCommerce sites like Lazada, Shopee, and Qoo10. You can quickly engage with an established consumer base by leveraging a well-known marketplace. It's a lot easier to do this than it is to construct a website and use SEO tactics to improve your search engine rankings in order to attract customers.
Pro #2: Marketplaces Promote Themselves
In Singapore, online marketplaces already use effective digital advertising to advertise themselves, benefiting merchants, wholesalers, and small enterprises. Of course, you'll still need to engage in digital advertising to sell your products, but thanks to your marketplace's self-promotion, it'll be a lot easier.
Pro #3: Cheaper
If money is a constraint, you might want to consider selling your products on a marketplace. Setting up a small business in a marketplace is less expensive than using an eCommerce platform because you don't have to maintain your own website. While some operators impose membership fees, the majority charge by commission, which means that business owners are only needed to pay when a sale has been made.
Con #1: Branding Is Difficult
It will be difficult to establish your brand without a company website or a personal store. Customers will associate their purchases with the online marketplace, not the vendor, therefore your customization options are limited. As a result, enhancing your brand's image might be challenging.
Con #2: Marketplaces Can Change Their Prices Anytime
You must first pay for membership or commission to use a third-party marketplace for your small business. Even if the price isn't excessively high, operators can adjust their prices at any time. They have the right to charge you a greater fee whenever they want, which could be problematic if the price increase is excessive.
Ecommerce Platform Vs Marketplace
Both eCommerce platforms and marketplaces provide distinct benefits that can help in the growth of your small business. A platform is the best choice if you want complete control over your whole operation, including your SEO and web design approach. However, if you like to get down to business right immediately, a marketplace may be the quickest option.
If you really want to enjoy the best of both worlds, you may always choose both. To increase brand recognition and visibility, you can open an online store utilizing an eCommerce platform and sell your products in a marketplace.
With that said, setting up an omnichannel retailing strategy has its challenges. You could face problems, such as a lack of consistency in product listings, inaccurate inventory levels and a tedious manual order fulfilment process across platforms
OMNA eradicates these complexities. OMNA enables you to post listings from a central database, ensuring accuracy and preventing errors. Furthermore, OMNA imports orders from Shopee and Lazada into Shopify, enabling you to fulfil them centrally. In addition, the real-time inventory sync feature updates your inventory levels across all channels, accounting for any units sold. As a whole, OMNA assists you by streamlining your omnichannel operations across your website and marketplaces.