Okay, long story short, I'm helping to build out an online marketplace. I've been reading the reviews of online sellers when they compare online platforms and one of the big issues that comes up is the lack of branding opportunities offered by the larger sites. Now, I think this is a very valid complaint, however I also believe that a business will probably miss out on a lot of sales through going it alone. Small businesses, for example, generally don't have the time, money, or know-how to brand effectively and this pulls those resources away from actually making money using the draw of a larger host site. So let's present the argument, shall we?
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The ultimate showdown. Seriously, don't question my themes
too much here. Click picture for source. |
Branding or Sales?
For any small business owner or marketing guru, you will know the power of branding. Getting your name out there and connecting your message to your name in people's mind is money in the bank. Managing that brand can also be a beast. Since your brand is your image, anyone posting inappropriate messages on social media, using the wrong logo, or using your name can be detrimental to your reputation. But what is the priority of branding compared to your sales? That will depend on your focus and what you hope to accomplish. In the world of online marketplaces, which you choose will depend largely on what your product is. Especially for small businesses this can be a fine line to walk.
On one hand, cash is king and driving those sales in a marketplace geared towards sales using the power of the host site can help do that. However, once you get that sale you're next goal is getting a second sale, then a third from the same dedicated client. Chances are you were found randomly out of the sea of competitors. This is both good and bad for you. You were the best of the best for that purchase. Problem is unless you really drive home not only the value of your product but the value of your company, you may not be the best for their next purchase.
Now on the other hand, having the control to shape the user experience can be powerful. If you attract them to a handsome shop that is easy to navigate and allow them the opportunity to view the value of your brand everywhere then you might not only get them hooked but start to build the seed of brand recognition in their minds. The problem is getting them there in the first place. The marketplace - online and in person - is awash with a sea of similar companies all vying for their attention. So you may create a repeat customer but that's assuming you can snatch them in the first place.
This doesn't have to be an either/or scenario. You can quite easily take advantage of both approaches to take advantage of the benefits. But you're a small business right? Do you have the time? Especially if this is your side gig, you might want to seriously think about which approach might get you the best bang for your time and money so you can focus more.
Build Your Brand
If your product is something that is highly unique to you or your process, then going it alone might be a viable option. If what you do is truly irreplaceable or there are few competitors - think high end art, jewelry, fashion... yachts - then you can focus on drawing attention from marketing efforts in ads and publicity. It is much easier to build a fanbase for a highly sought after product or something that is not as easily found. Then you can vogue for all your worth and build a customer experience that's valuable or just build up your own name. It's easier to point people towards your own art showing than your storefront banner in the middle of the gigantic interwebs free-for-all.
Focus on Sales
Now if you're in retail, let's be real here: you are probably not unique. Not really. Yours might be the only product of its exact kind, but there are lots of nearly similar items that can be substituted. Some people don't like to hear this, but recognizing this fact will get you a lot farther a lot faster. I say throw yourself in the mix right away. Are there replacements? Yes, but find your advantage and work the shit out of it. If you make a mean Christmas stocking, then that free gift wrapping and holiday delivery option is going to hook someone. Once you get them, stand out by doing what you do well and asking them to come again.
The other consideration is capacity. Marketing is key for driving sales in the first place, but the size of your operation will dictate how much time you can spend on that. Be realistic about this guys; it takes more time than you think. Letting someone else draw people in for you saves yourself a lot of work, not to mention the money you might throw into other advertising efforts.
Tips for Working a Hybrid
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Okay, yeah it's a liger. What hybrid were
you thinking? Click picture for source. |
Offer them something they can't find by staying on the host site. More than likely, that's where they will find you and make their first few purchases. However, you can control your brand and make a higher margin selling on your own without the fees associated with most sites. The bottom line is that they won't see value in your own site if it's the same thing. So offer your most special pieces on your own. Make it easier for them to place custom orders or buy in bulk. Offer gift-wrapping options or the ability to create baskets of related items as presents. Offer free gifts, discounts, or frequent buyer programs. If you make it a special experience with value that speaks to them, then you can draw them in and still make sales from everyone else that you can't make a repeat customer. Just make sure you have the time to spare to do it right that won't detract from your quality of product or customer service.
