Phil

UPDATED 24/04/2021 8:10 AM

E-Commerce Company Names

E-commerce is often equated with the sale of products via one’s own online store. However, there is also the so-called marketplace model: For founders who do not want to deal with the complex technology of online stores, marketplaces such as eBay or Amazon can be a good alternative. Numerous merchants offer their goods there and the platforms take care of the smooth process.

So if you want to get into e-commerce as a founder, you should consider: do I create my own online store or do I sell my goods via a marketplace?

Your own store: With your own online store, you are much more flexible as a founder, but you have to invest a certain amount of time or money in setting up the store. The advantage: you are and remain your own boss and control the entire process. In addition, you do not pay any sales fees to third parties.

Marketplace: Amazon and Ebay have a combined 66 percent market share in e-commerce. None of the competitors get past 2 percent. When selling through a marketplace like Amazon or Ebay, you can benefit from its huge customer base and generate revenue from day 1. However, the marketplace operators make a profit on every product sold and make key decisions about the terms at which sales are allowed.

Since both models have advantages and disadvantages, it is advisable to work with a combination of your own online store and sales via marketplaces. Customers are undoubtedly found more quickly on the established marketplaces, but the most money remains in your pocket in the long term with your own store.

It usually takes years to establish an online store, whereas you can get started immediately on marketplaces. Provided you have a product that is being searched for and bought. Products can also be tested very quickly and easily via a marketplace.

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