【Pickupp International Delivery Service】Online Marketplace vs E-commerce: Which One is More Suitable for You?

May 22, 2023 7:17 PM

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【Pickupp International Delivery Service】Online Marketplace vs E-commerce: Which One is More Suitable for You?

With the rise of online tools, selling products online has become increasingly accessible. Shop owners no longer need to navigate the complexities and high costs of physical stores. Instead, they can easily establish an online presence. Currently, there are two primary methods for selling products online: (1) through online marketplaces and (2) by setting up an online store via e-commerce platforms. These two approaches cater to different customer segments. Now we'll guide you through these sales methods to help you determine the most suitable option.

What is an Online Marketplace?

An online marketplace, as the name implies, is a digital platform where businesses can showcase and sell their products. Typically operated by third-party companies, online marketplaces require shop owners to pay a subscription fee to provide product information, prices, and photos. The marketplace operator does not hold inventory; instead, they facilitate transactions between sellers and customers. When a successful transaction occurs, the marketplace operator charges the shop owner a commission. Leveraging the platform's existing user base, shop owners can reach a larger consumer audience and benefit from increased exposure. Prominent online marketplace platforms include Amazon, eBay, Walmart, Alibaba, and Etsy. Some marketplaces even offer additional logistics services, such as Amazon's FBA (Fulfillment by Amazon), which assists shop owners with warehouse management, order fulfillment, and delivery, streamlining the sales process.

What is an E-Commerce Platform?

An e-commerce platform refers to a platform where merchants can create their online stores. Unlike online marketplaces, shop owners only need to pay a subscription fee to establish a unique sales site on an e-commerce platform. These platforms offer flexibility in terms of design and provide complete control over order management and payment systems. Additionally, they offer various online marketing features like blogs and forums to promote products and maintain customer relationships. Well-known e-commerce platforms include Shopify, WooCommerce, and Boutir. These platforms also provide data collection and analysis systems, allowing shop owners to monitor real-time sales performance and make informed adjustments based on customer purchasing behavior. This enables efficient and systematic store management.

Online Marketplace vs. E-Commerce Platform: Choosing the Right Fit for You

Both online sales methods have their advantages. To determine which option is most suitable for you as a shop owner, it is crucial to understand your products and sales goals. Listed by Pickupp, here are some essential considerations to gain insights into opening an online store: Promotion Difficulty: If your goal is to quickly reach a wider consumer base and achieve higher sales, an online marketplace may be the better choice. These platforms have an extensive user base and allow precise targeting based on product characteristics. However, building an independent online store from scratch requires more effort to attract customers and overcome low brand awareness. Brand Building: If your objective is to build a unique brand, an online marketplace primarily focused on high sales may not be the most suitable option. Marketplaces prioritize appearance, product quality, and price, placing less emphasis on brand concept. Therefore, by establishing a distinct online store, you gain control over brand tone and service quality, making it easier to stand out among competitors and plan for long-term brand development. Timeliness: For shop owners with existing offline recognition, creating an online store can expand business opportunities. E-commerce platforms provide all-in-one services for website design, order management, and advertising. However, novice shop owners may find it challenging to achieve short-term sales goals through an online store, as it requires significant time and energy investment. Online marketplaces offer comprehensive functionality and straightforward operation, making them more suitable for inexperienced shop owners without marketing expertise. Regardless of your chosen approach, achieving online sales goals has never been so easy to attain. However, focusing solely on products is not enough to elevate your online store. It is essential to provide reliable and convenient logistics services to ensure a positive shopping experience, ultimately enhancing operational efficiency and sales performance.

Pickupp International Express Service: Your Solution for Overseas Shipping

Here are 3 easy steps to using this service. Step 1: Log in to the Pickupp Merchant Platform First, please click here to log in to the Pickupp Merchant Platform. If you don't have a Pickupp account yet, click on "Create an Account." Once you're on the merchant page, you can top up your account through a credit card or bank transfer and take advantage of the value-added recharge program. Step 2: Create an International Express Order After topping up, click on "Create International Order" in the left column. If you don't see this option, please select "Switch to New Version" at the bottom of the left column. The international order feature is only available in the new version interface. On the order creation page, provide the necessary details. Before submitting the order, ensure that all information is accurate to ensure smooth delivery to the recipient's address. The order details should include: Sender's information: enter the sender's name, phone number, and self-drop service point code. When entering the code, please use uppercase letters for effective recognition by our system. Recipient's information: enter the recipient's country or region, postal code (Zip Code), recipient's name, phone number, and recipient's address. Please complete this in English. Step 3: Drop off the Package at a Pickupp Self-Drop Point Once you have submitted the order, you will receive an order number starting with [PU]. Remember to write this number on the package or print it out and attach it securely to the package. Keep at least three copies of the paper commercial invoice, filled out in uppercase English, and drop off the goods at a Pickupp self-drop point. A Pickupp staff member will weigh the goods and calculate the cost on-site. After completing the above steps, you can track the delivery status of your goods using the order number starting with [PU] on the Pickupp tracking page. Pickupp International Express Service guarantees prompt delivery of goods to overseas customers, even for time-sensitive items. We cater to various shipping needs for businesses. Please note that when sending packages overseas, businesses should be aware of customs declarations and international shipping restrictions. If you wish to learn more about the specific procedures and considerations for international shipping, you can read our Pickupp International Express Ordering Tutorial: https://hk.pickupp.io/en/blog/international-express-tutorial
Fortunately, Pickupp has years of experience in providing convenient, fast, and flexible logistics solutions for businesses, aiming to enhance store performance. In addition to basic logistics and one-stop warehousing services, Pickupp offers affordable self-drop and same-day delivery services. Whether you operate locally or internationally, you can choose the services that best suit your needs. Interested in learning more? Register as a Pickupp user now to enjoy the benefits!