Risks of Selling Online

Risks of Selling Online

July 26, 2018

The advantages of selling online are very obvious.  Marketplace sites made it so easy for you to do so.  Just create an account and in a matter of minutes, you are good to go.  You can now reach out to an audience you cannot sell to before.  These marketplace sites do the job for you.  They even have a tremendous rank in SEO, you can’t afford to have.  Nevertheless, you should not overlook some of the risks that go with this Industry.  I mean, there is always a risk, in both online and traditional selling.

 In addition,  selling on marketplaces is not a guarantee for success.  Online marketplace sites do have their own challenges that may not be a profitable option, especially for startup businesses. Identifying these hurdles from the beginning will be very helpful for you to decide if online selling can be profitable for your business.

Top of mind, I have 3 main risks you need to consider when shopping online:

  1. Thin profit margin

The primary concern for a retailer to survive and be successful in a competitive environment is a healthy profit margin.  The marketplace seller fees on its own can be a challenge. There different types, variation or combination of monthly seller fees, per-item fees, shipping fees, referral fees, and closing fees. These are all part of the cost of doing business on an already built selling platform.  You also have to deal with cut-throat competition. The reason customers shop online is because of the low cost. Because of this, sellers compete with one another on the same platform in terms of price.

  1. Being on “Leased Land”

Online marketplaces provide a structured and established platform that is practically ready to use. No worries on maintenance, branding, or set-up. You just have to follow whatever rules or policy the site imposes. Sounds easy enough?  Just like renting a market booth.

But what if the platform makes a major change? For example, most major platforms frequently change its fees during the holiday months. You might end up paying higher fees to continually use your online “market booth”.  If you feel this is liveable then by all means proceed.

  1. Counterfeits

 Counterfeit products is a very serious problem for some sellers. It is very possible that you are not the only person selling the same product.  Especially if you are manufacturing your product overseas.  Your product has to compete with counterfeits that are far cheaper, albeit low quality, in the same marketplace. These counterfeits diminish the value of your authentic products, not to mention hurt your profits in a very harsh way.

Let’s face it, selling on marketplaces may not guarantee success, but remember, putting up a real life, the physical store also have risks.  Knowing both the advantages and challenges, you can make the best decision for your business. At the end of the day, it’s all about who your market is, what product you sell, and what your business goals are.

Having understood this as an online seller, Get It Im provides a healthy market environment for its partner sellers.  We provide a market-friendly environment, that is both competitive yet fair to give ample support especially for startups who are new to the market.  So what are you waiting for? Check out our site and find out the difference! 

 




Also in News

Online Thanksgiving Shopping for 2018
Online Thanksgiving Shopping for 2018

November 14, 2018

Here is the thing about Thanksgiving shopping,  since Thanksgiving is only a day before Black Friday, most people don’t really think about Thanksgiving sales.  For that week, people think of thanksgiving as a family holiday and festivities, and not shopping for consumer and other personal items.  On top of that, most retail brands close down their brick and mortar shops during Thanksgiving inline for the holidays. So is there really such a thing as a Thanksgiving sale?

 Most analyst will argue that for the past two years (even 3), thanks giving retail sale is on the rise.  Thanks to online shopping of course.  Here are the points of that argument:

  1. Most companies now offer advance Black Friday sale. Brands and retail companies offer early Black Friday promos to take advantage of the season.  Or simply just to get ahead of the competition.

Read More

Black Friday Shopping: Online vs Offline Shopping
Black Friday Shopping: Online vs Offline Shopping

November 14, 2018

For most people Black Friday is a consumer event that is arguably exceeding that of the traditional Christmas sale.  For the loyal and the purist, Black Friday meant standing in queue outside shopping malls, elbowing your way through a crowd, even punching your way to the occasional fist fight over a $75 flat screen TV or a $10 coffee maker.  For some, they even go to the extent of coming up with a game plan the night before Black Friday. For most people, nothing beats getting physical when it comes to Black Friday sale. 

But for some, it is time to breakaway from this tradition. Although everyone would agree that Black Friday can be more than just a consumer event following Thanksgiving where everyone can get a $5 shirt on sale. As the popularity of online shopping soars, some traditional shoppers are starting to consider the possibility of doing their Black Friday purchase in front of a screen instead of a crowd of shoppers thirsty for a large discount.

Offline Shopping Advantage

For the purist offline shopper, it is the thrill of the hunt (for bargains) that pumps their adrenaline.  In Store Only Deals are unparalleled compared to online deals. And I must admit, the shopping experience can be un-paralleled.  For some, Black Friday is a family tradition, a chance for family and friends to bond and I dare say, compete with other groups or families over a $99 sale.

Read More

You Need to Know these 5 Things Before You Shop Online
You Need to Know these 5 Things Before You Shop Online

November 02, 2018

Having a credit card is great because you can now buy anything online, well, almost anything. But the online world as it is attractive can be really …..tricky. As scams and robberies can happen on the streets, it can also happen online. Here are 5 things you need to remember before you start shopping online:

 1.You need to keep your personal information very secure online. 

Be very careful as to who you share your personal information with, specifically your credit card number, expiration date, and security code. Never share these over the phone, email, or internet to strangers.

 2.CALL do not chat or email.

Now if you really, really, really need these information, maybe to an immediate family member, it is best to do it over the phone.  The intention is to make sure you are talking to the right person.

Read More