When you decide to sell products online, you have two primary options: set up an ecommerce store or establish an account with one or more online marketplaces. When deciding which will serve your business better, it helps to compare and contrast the two solutions in light of your business goals.

An online marketplace is an established site, such as Amazon, Lazada, or Newegg, that allows sellers to use their platform to market, ship, and collect payment for their products. An ecommerce site, on the other hand, is an independent site through which you sell your products.

Customer Base

Like many businesses, you probably want to reach as many customers as possible. Marketplaces have the advantage in this arena because they already have an established customer base. Amazon, for example, boasts more than 270 million customer accounts worldwide, according to Statista. It is impossible to garner that level of exposure for a standalone ecommerce website. Furthermore, according to Delivery Matters 2014, a report by Hall & Partners, 83% of online shoppers buy from marketplaces. While it is possible for ecommerce entrepreneurs to build a following over time, marketplaces offer immediate customers, eager to shop online.

Reputation Management

Online sellers must establish their reputations among consumers. You want buyers to recognize your excellent customer service, your high product quality, and your willingness to respond to their concerns. Marketplaces make this much easier, especially if you enjoy a high volume of sales.

For example, marketplaces usually have ratings systems that allow customers to give feedback on products and/or sellers. The more feedback you receive, whether in the form of numerical ratings or written reviews, the easier it becomes for new customers to trust your business and products.

Site Creation/ Management

To open an eCommerce business, you must design the site, select your eCommerce software, market the domain, submit the site to search engines, optimize the site for search, and attend to hundreds of other details concerning administration. With a marketplace, all that infrastructure already exists. If you want to start selling online with the least preparation and start-up hassles as possible, marketplaces far outpace individual eCommerce sites.

Process Management

From inventory tracking to invoice management, marketplaces allow you to track the metrics and records of your eCommerce business all in one place. You don’t have to set up an outside accounting system to manage your sales. Additionally, marketplaces handle the collection of payments and other administrative details. With an eCommerce website, however, you’re on your own. Unless you hire a professional or learn quickly, you’ll quickly bury yourself in paperwork.

Are you an ecommerce seller looking to receive payments from global marketplaces like Lazada, Newegg, Amazon, or Wish? With Payoneer you can

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