Business Through the Online Marketplace, know the advantages and disadvantages
The term Marketplace or online marketplace may be familiar to some people recently, even though the term marketplace is the English word for “market”. However, the term marketplace has a more specific term and has many meanings, especially in business, such as; a place where multiple sellers with the same product and buyers who share the same interests or more simply is a place where sellers and buyers meet as the true meaning of the market.
Regardless of the term used, currently one of the most active marketplaces is the online marketplace. People prefer to buy and sell through the online marketplace because it is easy and also practical. Through the marketplace platform, you don’t need to rent a place to open your stalls.
But before opening your business stall in the online marketplace, you need to pay attention to the advantages and advantages of selling on the online marketplace platform.
The advantages of the Online Marketplace
a. Greater Opportunity Through Community
Online Marketplace can be said as a place for many sellers. through this platform, you can create more opportunities by building relationships with other sellers through the community. You can share knowledge, share opportunities, and work together in building new opportunities.
b. No Need to Be Afraid of Losing Consumers
Through the online platform, you don’t have to lose customers. Every day the online sales platform is visited by millions of people. Even according to the price report quoted by Databoks, in the third quarter of 2019 alone, 66 million users visited the online sales platform in Indonesia. This shows that online buying and selling activity, especially in Indonesia, is very large. And usually, consumers visiting online marketplaces do have the motivation to buy certain items.
Your business will also be automatically promoted by the online marketplace owner. So you don’t need expensive or complicated promotional tools to market your product. Usually, online marketplaces are trusted by consumers so you don’t need to build consumer trust.
Besides, the easy access provided by online managers makes it easier for consumers to continue to reach your store. consumers will access the online marketplace anytime and anywhere.
c. Good Online Marketplace Features and Regulations
Online marketplace owners or companies usually have features or regulations that can increase the credibility and safety of your store. One of the features you get is insurance, payment integration, promotions, joint accounts, and store verification as a form of appreciation from the online marketplace company.
Reputation and verification features that are usually owned by online marketplaces can affect people’s trust in buying your products amidst intense competition in the online marketplace.
d. No Need Big Capital
Unlike offline marketplaces, online platforms do not require rental space. Some integrated online marketplaces usually charge a “rental” fee, but not as much as the cost of renting a place like a shop or field. However, free online marketplaces such as Facebook groups, online buying and selling forums, you do not need any fees.
e. You can Monitor Your Business Development
Some online marketplace managers usually have insight features. The insight feature can monitor how many people visited your store, the number of people responding, the number of people communicating, and the number of people who bought your products.
With you can monitor business developments, you can evaluate products, marketing strategies, or even find out the effectiveness and performance of online marketplace managers.
Lack of Marketplace
a. Hard to Get Trust
One of the drawbacks of an online marketplace is that it can be difficult to get trust. Online selling has always been known for scamming, scams, and also illegal goods. Especially in the online marketplace, you will compete with unscrupulous sellers. Even your product can be imitated.
b. High Competition Between Traders
Because online platforms have many customers and have a tendency to sell the same products, competition among traders in the online marketplace is very high. You have to compete in strategies to get a seller. Tips for selling online marketplaces, you must be diligent in watching the market and differentiating products from other sellers. You can also take advantage of the free shipping feature provided by the platform manager.
c. Depends on the Online Marketplace Manager
The continuity of your business depends on the online marketplace manager. If the manager has a bad reputation, lacks promotion, and also doesn’t have good regulations, then it will all affect the development of your business. It all depends on the marketplace manager and owner.
One of the shortcomings of doing business through online marketplaces is the sporadic market conditions. If you sell in multiple marketplaces, you are likely to be difficult for potential buyers to find. Because the online marketplace manager will not give birth to a store. Online marketplaces that have a variety of products will make it difficult for buyers to find their products. Buyers will search by keyword, but from the given keywords, buyers will also choose back from thousands, maybe millions of the same product.
Of the various conveniences and advantages, many business experts recommend selling through the online marketplace platform because, in the information age and digital industry, people will no longer invest a small portion of their money, time, and energy just to select and buy goods. People nowadays prioritize accessibility and ease of choosing goods.
The online marketplace isn’t just about products either. As stated at the beginning of the article, the marketplace itself currently has a variety of meanings. marketplace can be in the form of buying and selling of services; such as designers, employees, and experts. So if you do have a service providing business, you can join a similar online marketplace.
Those are some of the advantages and disadvantages of doing business through the marketplace. For your business to grow, don’t forget to advertise through the Froggy Ads service, you can start by advertising your products so that later you can increase visitors on your online business portal. Froggy Ads is an online advertising service that can help you control all your product campaigns. helps you target your desired marketing target and provides you with multiple options for marketing your product.