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The Shift from Marketplaces to Own Websites

Choosing the best place for your business to sell products online can be a daunting task. Do you get started on either a marketplace or by building a website, is a question worth a debate. FarziEngineer is here to help dive deeper into which direction is beneficial to your business.

October 18, 2021
mins read
The Shift from Marketplaces to Own Websites

The eCommerce industry is growing at an exponential rate, and so are the number of online stores. To survive the market heat and earn money, most online businesses seek the help of marketplaces, especially during their initial phase of establishment. They get the desired exposure, a constant display of their products/services to their target audience, a sought-after place that manages a majority of online operations, and so on.

But the bigger question is, 'can online businesses survive and thrive without the help of marketplaces?'

The answer is yes!

Having a website has many advantages that most online players do not know about. For starters,

  • It enables you to diversify your online presence
  • It protects your business from being at the mercy of big marketplaces and their changing rules
  • It allows you to customize and personalize customer experiences and ensure a high conversion rate

Your website is your own owned channel that enables you to increase your profit margins and make yourself the next Apple, Nike, or even Victoria's Secret.

We're not against the idea of starring your business in a marketplace. Instead, the opinion that once you've reached a certain level, it's time to create your own website and individual name in the world of online business. Companies like FarziEngineer can help build websites that are both customer-centric and conversion-driven.

Comparison between own website vs. marketplace

Selling your products/services through an independent online store against a marketplace has its own set of advantages and disadvantages. In general, marketplaces provide more support and guidance, especially during the initial phase of establishment. One's own store gives you more control and flexibility in operations.

Let's take a look at the two online selling options and gauge their feasibility.

Online Marketplace
Your Own eCommerce Website
Costs Involved
1. Membership fee
2. Commission on each transaction
3. Additional functionality cost
1. Design and development cost
2. Site maintenance cost
3. Hosting and domain subscription cost
Storefront Traffic
1. Comes from the marketplace’s built-in search engine
1. Comes from channels such as SEO, social media, email marketing, etc.
1. No individual branding
2. The name of the marketplace gets more traction on your platform/products
1. Create your own brand name in the market through diversified marketing activities
1. Selling through a trustworthy marketplace makes  buyers more comfortable while making a purchase
1. Essential to demonstrate your legitimacy to buyers to make them feel comfortable and purchase from your website 
Going Global 
1. Marketplaces give you the leverage to go global and sell goods abroad
2. Some tools include automated currency conversion, automatic translation, conversion, and in-house shipping options 
1. Possible to sell goods internationally through your website. But, it requires additional development, payment gateway compatibility, multi-lingual site features, and so on 

Today, it's quite common for online businesses to feature their products on their websites as well as on the marketplaces. This enables them to reap additional benefits from both places, create better brand awareness in the market, and increase revenue growth. You can take the help of companies like FarziEngineer to give your business a brand face, scale activities, and increase conversion rate.

If you're still confused, here are some more parameters to consider in deciding whether to sell your products on your own website, via a marketplace or both.

Parameters to choose the right platform for your business

1.Target audience concentration

One of the primary deciding factors when choosing a place to sell your products online should be who your target audience is and how they're buying from your brand.

If you're selling to other businesses in bulk, your average order value will be higher than it would be if you sell directly to customers. Since these buyers are spending a huge amount of money, they'd be more comfortable buying from a reputed online marketplace. In such a case, it's better to make use of a marketplace to make your business flourish.

Meanwhile, having your own website makes more sense if you're selling something small in quantity and only meant for direct consumers, such as shoes, apparel, and kitchen utensils. You can focus your energies on offering a larger range of products to your customers under one roof and not fear facing competition as in the case of a marketplace. FarziEngineer helps you build robust platforms that are user-friendly, customer-centric, and help your business scale at an exponential level in the market.

2. Gauge your competitors

This is another essential parameter that can help you make the decision. Gauge the activities of your competitors. Analyze the business channels they're using to sell their goods in the market and draft your approach around the same.

If your competitors successfully sell their products through their website, then maybe you too can find success through this channel. If they've been able to generate high revenues by selling through well-known marketplaces, then give it a try.

Besides mapping their success, pay attention to the areas where they're lagging. Pen down their pitfalls to ensure you avoid making the same mistakes.

Don't become a copycat. Instead, draw inspiration and craft your own strategies while keeping all business parameters in mind.

3. Your brand's reputation

If you're already well-known in the market, selling your business commodities through your website makes more sense.

However, if you're relatively new in the market and haven't been able to build a loyal customer base, using the platform of a well-established marketplace can prove highly beneficial.

Besides, even if you decide to sell your goods via an established marketplace, your website can be an added advantage. You can derive profits from both places and even work harder to build a customer base that regularly buys goods from your brand irrespective of the platform.

4. Keep your budget in mind

Your budget is another critical parameter that you must gauge when planning to sell your goods via your website or through a marketplace. The reason being, building a website can be costly and time-consuming. Marketplaces, in this respect, are quite cost-effective as you only have to avail of their membership and pay a nominal commission on each item sold through their platform.

Once you've gathered enough funds, you can surely plan to build a robust website, which helps scale sales and business revenue. Use website development services by FarziEngineer to build websites that boost revenue.

5.The goals of your business

Last but not the least, your business goals should also stand amid the parameters you gauge while deciding which direction you want to go.

If your business goal is to expand your activities beyond the loyal marketplace and start selling goods on a global platform, an online marketplace will come in handy. For instance, Amazon.com offers auto-translation and currency conversion. This helps both sellers and buyers to commence business easily.


There is a myriad of ways to make your business successful. The only thing you need to do is analyze the above-given parameters and decide what will help your business scale at a level that you've envisioned.

If you believe a website would do wonders for your business, invest in one. Meanwhile, if a marketplace will help create better brand awareness, opt for it. Ensure whatever decision you take, should help you expand your business horizons and make it a renowned name among the masses. FarziEngineer helps build a seamless website that matches your business needs and increases revenue gains.

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