Selling products and services via third-party platforms may seem tempting to boost your sales. However, make sure you understand the pros and cons before you sell on third-party platforms. Third party platforms are used by many private and public sellers to boost their sales. But why do people sell through third-party platforms when they can sell their products on their websites?
Advantages of third-party platforms
You can increase your sales by selling products through third-party platforms. Customers who have never heard of your products will have the opportunity of buying your products. This can lead to repeat purchases after knowing your products. It is also very cost effective to sell on third-party platforms because the costs will be covered. You will reduce advertising costs. Your business will benefit from the available structure of established platforms with fulfillment and checkout support as well as shipping.
There are no restrictions or limits as to the number of third-party platforms you use to sell your platform because you can put your products on platforms such as Amazon, eBay, and many more without spending money and you can take note of how your products sell.
Disadvantages of third-party platforms
Third party costs and fees can vary depending on the platform you choose to sell on. The fees charged will be deducted as a percentage of your sales and some of which include shipping. Other costs include payment services, participating in extra promotions, ads, and listings. Some platforms charge a lot of fees, and they can leave you with a small amount of profit.
When you sell through third parties, you lose your identity. This is because third-party platforms do not take sellers into consideration. They only focus on the products they are selling. There are limited ways in which you can establish your product in the market because you won’t be able to deal with your customers.
If you use more than one-third parties, you may face the challenge of keeping the quantities up to date. This will become more complicated to monitor your tock. You can encounter potential clashes with various websites with one stating you have products in stock and others stating that you have sold out all products. This can lead to conflicts with customers. When you sell through third parties, it puts you out of control because you rely on third-party platforms and if they run out of business, you will be out of business temporarily.
— InvestopiaUk (@InvestopiaUk) August 19, 2018