Global retail sales have gone manifold due to the introduction of online stores in the previous decades. A lack of online presence can adversely affect your apparel sales. SMEs should take advantage of the eCommerce platform offers to them.
Advantages and disadvantages of using third-party app E-commerce business
It is equally important to understand the benefit and drawbacks of your third-party textile-selling platform before you start your small business. To boost their sales, both public and private vendors use third-party eCommerce sites like eBay. Although selling through a middleman may be more convenient, it is also more expensive.
Advantages
Increase company revenues
By bringing in new customers, selling your products through a third party can significantly boost your revenue. In the long run, there will be a great relationship with your products online and customers will make more purchases in the future also.
Cost-effective
Furthermore, third-party apps have a great customer base and often do advertising and other digital costs on their own and it becomes cost-effective for you. An established built-in checkout and fulfillment assistance can benefits you greatly and will save a lot of money. You also don’t have to bother with traffic as such websites have millions of traffic every day.
Less Risk
You can sell your products on third-party apps and can withdraw your money at any point in time when you feel not safe to trade. There are various websites like Amazon, eBay, and Group on where you can sell your products and can also run a sales ad campaign to test how well your fabric products are performing.
Exposure
Millions of people sell their products on Alibaba and Amazon and this will help you reach out to your target audience as they have millions of traffic on their website. You will find brands that you have not even heard of before. Also, these platforms help you to increase your visibility and helps in increasing your sales.
Disadvantages
Additional cost
Your third-party expenses and fees can vary depending on the platform you are using. They charge some fees or commissions on the sale of your products and you can save a lot of money from advertising and promotions and can get instant benefits from their promotions on the website. Some online store charges high fees that have a direct impact on your sales such as Groupon which charges 50% of your sale price.
May lose individuality
If you sell your products through a third party, you have the risk of losing your individuality because third-party apps don’t care for your products as they are just a platform for making sales. You have few options to focus on your products. Your fabric products will get very less popular because you are selling them on a third-party app and customers can restrict what you sell.
Difficult to track inventory
It might be difficult to track the inventory as it will be difficult for you to keep an eye on multiple third-party apps and also run the website. It gets increasingly difficult to keep inventory stocked with tracking. You can also have conflicts of the different information on different websites which could be misleading information also.
Little risky
Whenever you sell something on a third-party app, you give up control and can get in danger. Depending on third-party platforms, you get momentarily out of business if the app goes out of business or goes unpopular.
Decision time
Third-party apps are better if you don’t want to invest so much money in advertising and promotions. Also, it depends on your product and how it will get recognition. They are great platforms to increase sales without making many expenses. But on the other hand, they might cost you higher depending upon app charges policies. So, choose the third-party app wisely.