While there is nothing wrong with selling on Lazada, Shopee or any other e-Commerce marketplace, maintaining your own wholesale business' webstore should be the mainstay of your focus. Being in control of how you sell yields benefits to both you and your wholesale trade customers.
Rise of e-Marketplaces
The rise of popular e-marketplaces such as Alibaba, Lazada, Shopee, Zalora, Taobao, Amazon and Qoo10 has led many wholesalers to utilize them to get the word on their product out. A simple search for most products would probably show a link to one or more of the above e-marketplaces.
They are an excellent way for customers to be exposed to your company and offer a convenient way to compare prices and products. The impartial reviews of products and services are also a big draw. They can help give customers the confidence to buy from your wholesale company if you have garnered enough positive reviews.
The downside is that being both retailer and wholesaler on such e-marketplaces, you're at risk of directly competing against your own resellers. Therefore you're competing against your own product. You mustn't undercut the resale price, as this would damage your wholesale relationship with them and retailers would be reluctant to take your inventory in the future.
You will not be able to control how your webstore looks, as there are templates and guidelines for sellers to adhere to. E-marketplaces will charge a commission on sales. This effectively eats into your profit margins.
The cost of not maintaining your own webstore
Failing to invest in your webstore means that your customer base will not be 'yours.' Digital solutions will help you capture essential information concerning your customers' buying behaviours, giving rise to data-driven decision-making. Selling via e-marketplaces will deprive you of this.
Do not forget that your competitors will be highlighted amongst the product offerings on such e-marketplaces. Building your customer base means generating customer loyalty with enticing offerings tailored to the different customers you have established a relationship with.
In the long run, investing in an end-to-end solution that automates your backend while having your own frontend webstore will give you control over pricing, discounts and helps you develop your brand and a loyal customer base. This would be the sensible way to go.
Would you like to find out more? Do contact Zooloo's digital solutions experts immediately for the first step towards digital transformation at sales@zooloo.asia.
Explore more
- Read about The Digital Transformation Journey
- Learn more about our “Digital Backbones”
- Learn more from our eBook series on Digital Transformation for Wholesale Trade
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