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September 1, 2020

Ecommerce VS Marketplace

Undoubtedly, COVID19 has changed the way we go about in our daily lives. In some cases, it completely replaced the old habits of our daily routine, and taught us that “Change is the only constant” in our lives.

For industries which were around Internet services (Think: E-tail), Logistics and Hygiene Products were the biggest beneficiaries, while businesses related to Tourism, Outdoor Events, Retail and Restaurants were hit the hardest. The “new way of living with masks” is revolutionizing the relationships between our physical, digital, and biological worlds.

Internationally, some businesses are responding with initiatives aimed to address the situation proactively. In the Middle East and North Africa (MENA) region – and the UAE in particular – the government’s efforts to embrace the opportunities in the digital space and help the businesses with lots of incentives, have resulted in strides being taken at an unprecedented pace towards a more tech-driven future.

COVID19 has forced lot of businesses in MENA to execute their presence in the ecommerce world by either creating their own Online Stores or heading to a marketplace to showcase the offerings to the growing online consumers. Being present online and selling is no longer a luxury but a question of survival for every business. However, many businesses have a difficulty in deciding for which route to go for: Should they go first with a marketplace? Start their own E-commerce store? Or plunge into both together?

Here are three things you should consider before you decide a way forward

  1. Budgets
  2. Margin, Fees, and ROI
  3. Access to a right Marketplace developer or E-commerce website development company
  • Budgets

Creating your online store can be expensive and time-taking. Further finding a right partner who is best in their art of creating an ecommerce web design company in UAE and the region can be difficult to find. Hence, if the funds are limited and there is no right partner available, going with a marketplace is a good option for the short term. Marketplaces have “ready-made traffic”, but that traffic may not mean “ready-made business” for companies. Companies must work with a marketplace developing agency or hire an inhouse resource, in order to stand out in the 350 million products available on Amazon,  who can help manage the reseller account efficiently and drive traffic to the reseller stores on marketplaces.

  • Margin, Fees, and ROI

The nature of ecommerce business will keep on changing the retail industry and influence customers’ behaviour. Starting an online business nowadays seems like an attractive idea for many businesses, but before anyone dives into this dynamic business sector, they first need to learn the ropes of the ecommerce industry specially when it comes to the margins & ROI. Every marketplace has their own set of regulations and charge the reseller a specific percentage of every sale made. This at times can restrict resellers in creating very special offers to entice customers to their online offerings. Having your own online store which is robust in nature and designed by an experienced ecommerce website development company in Dubai does not only help to control margins and ROI better, but also helps to drive relevant and quality traffic to the site.

  • Access to a right Marketplace developer or E-commerce website development company

Many reports prove that ecommerce is growing at a steady rate all over the globe. The report also say that It is expected that by 2040, 95% of all purchases will be via ecommerce and Google driving around 43% of ecommerce traffic on internet.

It is estimated that around 35% of Google product searches are converted into purchases within 5 days. Regardless of whether you’re a small start-up looking to build your business, or you’re an established merchant looking to either expand your reach or test international markets, creating an ecommerce website or develop & design your presence on market places is an absolutely no-brainer. However, it is extremely important that either you peruse one of the routes or both together, you must have access to a reliable marketplace developer or an ecommerce website company with a track record specially available in UAE or in the market where you are based. A right partner can help you decide which tools and strategies are best to strengthen your business as you progress through the years.

 

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