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.
Takeaways and Tweetables
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)Click To TweetYou 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)Click To Tweet
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) Click To TweetIf 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)Click To Tweet 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)Click To Tweet
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)