eCommerce or Marketplace: Which is the Best Choice for Selling Your Products or Services Online?

Paul López
Oct 12, 2023
eCommerce vs Marketplace

If you’re contemplating expanding your horizons and starting to sell your services online, you’re on an exciting path to business growth. However, before diving into this digital world, it’s crucial to make strategic decisions, such as choosing between an eCommerce platform or a Marketplace. In this article, we will guide you through the key points to consider to make an informed decision.

1. Clearly Define Your Service Offering

Before delving into platform choices, it’s essential to have a clear understanding of what you’re selling. Selling services significantly differs from selling products, and this will directly impact your platform choice.

Services are intangible, meaning you can’t physically showcase them. Therefore, your marketing strategy and how you present your services are essential. Ensure you have a strong value proposition and a deep understanding of your potential customers’ needs.

2. Choose the Right Platform According to Your Needs and Strategy

Next, let’s address four main approaches to selling services online: through a Marketplace like MercadoLibre, through your own online store on platforms like Shopify or Tienda Nube, WooCommerce for WordPress, and Amazon Services.

○ MercadoLibre: This platform is known for its simplicity and its ability to reach a wide audience. MercadoLibre generates a steady flow of visitors, which can be beneficial for those seeking quick access to potential customers. However, it’s important to note that in this environment, your product or service may lose visibility amid the competition. Additionally, commissions tend to be higher compared to other options.

Shopify or Tienda Nube: If you’re looking to build a strong brand and desire greater control over the customer experience, these platforms are excellent choices. Here, you have the flexibility to customize your online store and give it your brand’s personality. Commissions are usually lower, but you’ll need to attract buyers through marketing strategies.

WooCommerce (for WordPress): If you already have a website built on WordPress or want a high degree of customization and control over your online store, WooCommerce is an excellent option. This eCommerce platform is an extension of WordPress and allows you to create a fully customized online store. However, you’ll need to manage attracting visitors and setting up the platform yourself or with the help of developers.

Amazon Services: If you’re interested in offering professional services like consulting, graphic design, or digital marketing, Amazon Services can be a suitable platform. This part of Amazon allows independent professionals and businesses to offer services to a broad audience. You’ll benefit from Amazon’s trust and large user base, which can facilitate customer acquisition. However, keep in mind that Amazon charges commissions for transactions, and there may be increased competition in certain service categories.

3. Evaluate the Pros and Cons

Each platform has its advantages and disadvantages, so it’s essential to carefully weigh your needs and goals before making a final decision. Consider the following points:

○ Visibility vs. Control: Do you value immediate visibility in a Marketplace or complete control over your brand in an online store more?

○ Commissions vs. Marketing Investment: Do you prefer paying higher commissions in a Marketplace or investing in marketing strategies to attract customers to your own store?

○ Customization vs. Simplicity: What level of customization do you need to stand out and reflect your brand’s identity?

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