13 Jun 5 reasons you should open your own Online Store
Your brand might get a good start on Souq.com (Amazon), Sivvi or E-bay. But if it’s doing well, the next step should be to create your own online store. Having your own online store allows you to create your own brand identity and engage with customers in more meaningful ways.
So, how do you know when it’s time to take the next step? Let’s have a look at 5 main reasons why brands feel that it’s time to go big and open their own online store.
Your brand is becoming significantly bigger
To us, that’s the first reason why a brand should have its own online store. If you feel that your brand is bigger than the rest – which is something you can verify by number crunching – it’s time to go even bigger. Major marketplace platforms like Souq.com and E-bay are encouraging for smaller businesses, but it is natural lifecycle to have your own when (if) you’re doing well.
You’re not diversified
To protect your empire, you’ll need more than one stream of revenue. Saying goes that don’t put all your eggs in one basket, but it’s difficult to avoid when you’re dependent on an external platform. Having your own online store allows the freedom to add different product categories. Another disadvantage of a marketplace is that you have no control over the other recommended products when a user is viewing yours. This can be controlled, and suggesting complimentary or even alternative products from your own brand becomes possible on your own online store.
Customers are asking for it
Having your own online store is a sign of brand maturity and tells customers that there is a serious business behind your product. When people ask where they can find you online sending them to Amazon or Sivvi could dilute your brand’s equity. Immediately this would tell the consumer that you’re one of the many brands. Additionally, once the user is in a marketplace, they will be exposed to offerings from other brands, which could hurt your business.
You sell a specialty or luxury product.
Luxury brands like Louis Vuitton never officially list their items on sites like eBay and Amazon to maintain a sense of exclusivity. Depending on your brand, it might make sense to have your own online store and therefore maintain very tight control over where customers can find your products. This strategy is usually for low volume, high margin businesses in the jewelry, fashion and accessory industries where user experience is very important.
Similarly, if you are selling wholesale, business-to-business or items in bulk, having your own website will make your business seem more credible and dependable. It increases confidence in a potential buyer if they know there is someone on the other end to answer emails or phone calls, especially for high priced items with long lead times.
You’re paying too much in fees.
Finally, another reason could be that you’re paying a lot of fees to be on marketplace platforms. The fee comes in many ways, from adding new products, to percentages to each sale you make through them. There is also an opportunity cost of all the possible leads that have gone away, thanks to the site showing competitive brand’s products. Having your own online store changes that. The initial setup of the store might be a bit expensive – which will be worth it because the rest of it is all in your hands.
Are you planning to expand your wings and start your own online store? You’ve come to the right place. The HAWK Media takes pride in building great user experience and sturdy e-commerce platforms.