5 Reasons Businesses Choose Prosperna Over Online Marketplaces

Online marketplaces like Lazada, Shopee, and Carousell can help businesses enter eCommerce but they tend to undermine the importance of building online stores.

The implementation of community quarantines in the Philippines contributed to the growth of eCommerce not just in the metro, but nationwide.

77% of Filipino consumers today expect their local retailers to have their own form of an online presence.

Ever since talks of boosting the sector have been announced, online sellers getting their government permits peaked at 68,000 as of August 2020.

If you want to sell online, it’s SUPER IMPORTANT to have an eCommerce Website over an online marketplace.

Don’t take my word for it!

Here’s evidence that explains why:

1. YOU NEED A SHOP, NOT A BAZAAR

Just like we shared in our previous blog about online food delivery platforms, marketplaces like Lazada, Shopee, and Carousell are NOT WEBSITE BUILDERS but listing platforms.

You don’t own anything except for your profile and have to share customers with other sellers on the platform.

It’s like setting up a booth in a bazaar, everything is just temporary.

Before we share with you the advantages of an online store builder like Prosperna, here’s a quick summary of the disadvantages that selling through online marketplaces can have on your business:

  • Lack of access and control to business processes
  • Highly competitive and lacking personalization tools
  • Customer Information and loyalty belongs to the platform
  • Buyers are prioritized over the sellers
  • Dealing with commission rates and transaction fees

While there’s nothing wrong with using these as added sales channels, they shouldn’t replace an online store because it’s apparent how they can limit your growth in the long-run.

2. CUSTOMER LOYALTY IS BETTER THAN CUSTOMER ACQUISITION

Retaining an existing customer can be up to 25x CHEAPER than it is to acquire a new one. This is because you don’t have to continuously spend on advertisement and other marketing efforts.

Having access to customer information is not usually available on online marketplaces because they serve as mediators between you and your customers.

As we quoted previously “your buyers are their customers.” (sad.)

Having an online store allows you to build a customer base and gives you the contact information you need to keep in touch with your customers and foster their loyalty.

With loyal customers, you can guarantee repeat business and increase in profits by 95% compared to new customers.

Online marketplaces are useful for new customers to discover your business, but if you want to keep them in the long-run, directing them to your online store secures that relationship.

3. PROVIDING THE FULL BRAND EXPERIENCE

When you have your own online store, you have TOTAL control on what you want to do with it.

We’re talking about designs, features and everything that represents your branding to your customers.

On the other hand, online marketplaces have little to no personalization features, that ends up making you look boring and generic to your target market.

Your eCommerce website empowers you to show your personality and directly transact with customers that creates the best shopping experience, service and support.

Online store builders like Prosperna can even help you with all the technical stuff and gives you the choice from templates to any website design requests that you may have.

4. HAVING THE BUSINESS FREEDOM

Freedom is empowerment for businesses to make informed decisions.

You can sell whatever you wish (as long as it’s legal, of course) and even choose the type of customers you want to work with, whether it’s consumers (B2C) or other businesses (B2B, you name it.

There are no restrictions from policies that online marketplaces tend to have, that are limiting for businesses who may have different principles. You can’t really grow or branch out how you like because you are confined by somebody else’s rules.

Furthermore, you can decide for your business without needing anyone else’s approval.

You can add or remove as much products, payment options and delivery methods as you please.

So apart from how you appear to customers, you have the freedom to operate your business with your own online store.

5. STAYING RELEVANT & ENGAGED EVERYWHERE!

You’re probably tired of hearing this from me…

But content is, and ALWAYS will be KING!

Selling on an online marketplace alone doesn’t give you the tools to create content with SEO.

If you don’t already know, SEO content is important in marketing to widen your reach, raise brand awareness and engage with your customers.

While you can pay to boost and advertise your listings on different platforms, without shareable and relevant content, you’re relying on pure luck to make that sale.

I’m sure that’s a gamble no business is willing to take and no uninformed customers are willing to purchase.

A HUGE advantage of a Prosperna online store is that it’s equipped with the simplest and most complete blogging tools on the planet, as well as built-in SEO tools made easy to help your website show up in search engines like Google.

It’s completely foolproof.

CONCLUSION

This article covers only five of the many reasons why a Prosperna Online Store would be a better choice to sell over online marketplaces.

In summary, we explained why:

  • You Need A Shop, Not A Bazaar
  • Customer Loyalty Is Better Than Customer Acquisition
  • Providing The Full Brand Experience Is Key
  • Having The Business Freedom Is Empowering
  • Staying Relevant & Engaged Everywhere Helps

To learn more about the benefits of Prosperna, book a FREE DEMO with us and get your online business growing today!

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Dennis Velasco

Dennis Velasco

Technology evangelist super passionate about helping MSMEs "level the playing field" with technology.