Selling Online is Profitable but if we are aware of the Challenges that Online Sellers Face we can better Equip ourselves for the Business.
eCommerce Portals for Sellers: Find out the Challenges of Online Selling and How to overcome them.
Online selling seems enticing and lucrative in the present times. Online selling is most talked about and it is everywhere. It is the most common trend and market buzz where everyone is looking to invest in online selling.
|Challenges of Selling Online|
Decide how you would like to see your business grow in the present e-commerce boom by surpassing these obstacles. Before you actually invade the e-commerce arena be prepared by knowing all the potholes in the path and plan accordingly.
Challenges for the Online Sellers who sell at the third party eCommerce sites and Stores.
In the age of online selling where everyone is hoarding to start selling their product more and more online, we need to keep ourselves updated about the challenges of online selling, so that we can always think of better solutions and grow unbeatably.
1. Soaring Competition
With so many biggies in the e-commerce market fighting for their place the competition is soaring really high in e-commerce industry. The few top marketplaces have captured the majority of e-commerce market. So it is wise to start selling on those who already have established shopper base for steady sales.
Not only this but even the big marketplaces have so many vendors getting registered on them to sell their product on their platform. This results in only those in top few page results gets the highest visibility and sales.
And there is a hoard of coming to the first few pages which now means more money for the marketplaces as they have started charging for advertising on first few pages. This also further slashes the profits of the sellers.
2. Low-Profit Margins
The profit margins are also low due to low selling price strategy which most of the marketplaces have adopted and then you have to pay for commission fee to marketplaces, shipping , packaging and taxes.
But among all this the biggest blow is due to the low selling price strategy been adopted by the online marketplaces so as to attract the buyers from all around to start becoming habitual of buying online and getting more lucrative deals and save money as compared to the conventional shopping.
3. Marketing and Advertising Cost
If you have to boost sales you either participate in deals and offer by slashing prices and selling on lowest and most lucrative price to get more sales.
If you aim to keep getting steady sale all through you need to put in more money in advertising and promotions which brings you on the front page or first few search results in the online marketplace.
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4. Not Great for Branding
Selling on a marketplace might not be as good for your branding as whatever customers you get are simply the customers of that marketplace. They buy from you till the time you are selling via that particular marketplace.
Out of that marketplace they fail to identify your brand in most of the cases. So selling online on marketplaces might get you good sales and customers from all over but they are not your customers but the marketplace’s customers at the end of the day.
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5. Dependency on Marketplaces
You remain dependent on terms and conditions of the marketplace. You sell by the rules and guidelines setup by the marketplaces that you sell on.
You have less to experiment and try your creative hands at. Most of the correct strategy and planning comes from the marketplace guidelines so it is not a very great idea in the long run.
6. Handling Payments
Handling payments can be a headache. Different marketplaces have different commission and payment methods. Selling on multiple marketplaces can be a really tough task if you handle everything manually.
There is a lot of time involved in managing the complete sales through marketplaces selling which hampers the core business also or involves more cost for hiring more resources to manage the show.
7. Order Management
Managing orders from different marketplaces needs another expertise to take care of every details. From packaging to shipping and inventory management all requires detail and close monitoring. In the absence of attention, you might loose hood of your online business and face harsh consequences.