Popularity of marketplaces: The importance of having your own ecommerce site

The rise of marketplaces, such as Amazon, Cdiscount, or AliExpress, has not gone unnoticed. For many ecommerce sites, selling on these marketplaces is an opportunity too good to ignore. However, be cautious; relying solely on these platforms may not be the optimal strategy. In reality, combining a presence on marketplaces with your own ecommerce site is the key to a balanced and sustainable strategy.

Marketplaces: A launchpad, though not without limitations

The benefits of marketplaces are undeniable, and 29% of ecommerce sales volume was conducted on these platforms in 2023, according to FEVAD's annual report. Marketplaces offer global exposure, a massive existing audience, and usually well-developed sales tools. Who hasn't thought about selling on Amazon or Cdiscount to boost their sales?

However, this model also has limitations. Although these platforms are ideal and allow you to get started quickly, they don't belong to you. As a seller, you are subject to their rules, commissions, and intense competition.

Another important aspect is the dependency they create. Imagine your main sales channel is suspended overnight. This possibility highlights the importance of having another sales channel: your own ecommerce site.

An ecommerce site: more than just a storefront

Unlike marketplaces, having your own ecommerce site gives you full control over your business. You decide on the appearance of your store, the products you want to highlight, the promotions to offer, and most importantly, you maintain a direct relationship with your customers.

Simply put, you're the sole captain of your ship. Having your own ecommerce site is the equivalent of opening a physical store. You have complete freedom regarding personalization, customer relationship management, and creating a memorable brand identity.

Having your own ecommerce site is also vital for gathering and analyzing essential data on your customers, thanks to analytics solutions. On a marketplace, you often miss out on this data. Platforms like Amazon carefully guard this information and only share their insights sparingly.

Creating a brand identity: The undisputed advantage of an ecommerce site

One of the major strengths of an ecommerce site is the ability to create and strengthen your own brand identity. On marketplaces, consumers primarily buy on the platform and not directly from the brand. How many times have you purchased a product on Amazon without paying attention to the brand that sells it?

Creating your own online store allows you to build a strong, cohesive brand identity and cultivate a relationship of trust with your customers. In the long term, this will help you stand out from the competition and build a loyal customer base that recognizes and appreciates your values, quality of service, and products.

The freedom to set your prices and manage your margins

Another important aspect of running an ecommerce site is the total freedom to set your prices. Marketplaces often impose very strict pricing policies, with price wars that can hurt your margins.

On your own store, you can tailor your pricing strategy based on your actual costs, positioning, and target audience, without constant pressure from other sellers.

The role of marketplaces: complementing rather than replacing

Marketplaces should not be disregarded altogether. On the contrary, these platforms play a crucial role in a well-thought-out ecommerce strategy. That being said, Amazon and its counterparts should be seen as complementary levers, and certainly not as a single solution. Marketplaces can help you gain visibility and revenue, but should never be your only source of revenue.

As you can tell from this article, the best solution is to combine the two approaches. You can use marketplaces to acquire new customers and then redirect them to your own ecommerce site. Then on your online store, you'll offer exclusive promotions, original and pertinent content, or loyalty programs. This model allows you to expand your customer base and foster long-term engagement on your ecommerce site.

SEO and marketing: Why is your site your best asset?

Another major advantage of having your own site is search engine optimization (SEO). Working on your SEO helps attract organic traffic, without having to pay commissions to third-party platforms. However, this doesn't prevent you from launching digital marketing campaigns (Google ads, Facebook ads, email marketing, etc.) to boost your visibility and sales.

Conversely, marketplaces control access to their audience, and you often have to pay to be well-positioned in search results. Having your own site allows you to diversify your traffic sources and, again, not put all your eggs in one basket.

Conclusion: Taking the best of both worlds

The popularity of marketplaces is undeniable, but relying solely on them would be a serious strategic mistake. Having your own ecommerce site is essential to ensure your long-term independence, strengthen your brand image, and maintain control over your sales. Marketplaces and your ecommerce site must work hand in hand. One provides you visibility and sales volume, and the other allows you to build a lasting relationship with your customers. By combining these two channels, you maximize your online store's chances of success.