So having decided to sell online it might well be that you would like to
sell online through eBay or through Amazon rather than building your own shop. What I want to do in this section is
really clarify the differences and the pros and cons between having your own shop as opposed to
having a shop inside eBay or Amazon. Now when I say that eBay or Amazon of
course, I’m talk about the two most popular at this point in time. So I’m really referring to having a shop
within somebody else’s shopping center, because thats how I
explain it. See if you were gonna go and open a new
shop today, and this is a physical bricks and water shop where would
you like to have that shop? And I’m guessing that you wouldn’t
want to have it stuck out on the edge of town where
nobody knows to go to it. Because if you do that you’re gonna need
to get the footfall, you’re gonna need to attract people to your shop. Now when you look at things
like eBay and Amazon of course that’s like
being right in the middle of the shop in mall. You see they already have footfall. People are gonna
walk past your shop window every minute of the day from the day you
open the door. That’s very difficult to achieve if you
have your stand-alone bricks and water, out on the
edge of town, shop and that is the equivelant to you
building your own shop. Now having said that you generate your
own audience and you’re not there with the
competition. So if I sell sweets in the shopping mall and so does another
shop two doors down, of course its easy for people to choose
whether to come to my shop or somebody else’s. Whereas if they’ve come out of town and
found me then they’re not really shopping around at
that point there only going to be shopping from me.
So there’s pros and cons but I would say that there’s a big pro about having your shop inside eBay and Amazon because of the immediate footfall. Now not only are they bringing you a lot of
people for far less money than you could achieve the same thing
through search engine optimization and Social Media and all the things we’ll
talk about later in the program, it’s also less
expensive to use their system. Now like all of this because it’s less
expensive et cetera you will be restricted on what you can
do. I absolutely get that, however this could be a good
way for you to test whether there is any need for you to
have a shop. If it becomes really successful you’ll have
generated the income and therefore the profits to then
feed into building your own shop. So think about this is a strategy
whereby you start with an eBay or an Amazon or who knows, why not have
both, shop and then you build it out to full
e-commerce. So let’s have a look at some other
things that you would find with an eBay or an Amazon shop. Now first
of all I’ve spoken about how they are the shopping mall so you’re inside the shop
mall, that to me is the number one benefit. But
what about some of the other bits? You see we naturally trust eBay and Amazon. So therefore if you’re
selling items within eBay or Amazon, there’s a natural familiarity and a trust there before anybody even starts to buy your
particular product. So that’s got to be a plus point
because when you start a new shop of course, you’ve first of all got to build up that
level of trust. Whereas with these sites its automatically there and in fact they
have processes in place and systems to really make buyers feel at ease. So
for example you’ll have seen A plus plus on Ebay et cetera and your power sellers, and
Amazon’s got exactly the same kind of scoring mechanism so its easy for you to
start building up a reputation. So and I would definitely say that
that’s an important part your strategy, by the way when you’re selling through either of those systems. So it’s got the in built trust you’ve got a way to build up your own
level of trust within their anyway and it’s definitely easier and cheaper to set up. Then put on top of that they gonna have the
traffic already coming through and you’re really onto a winner. So that’s a
lot of pros about using Amazon and Ebay. So if it’s all that positive and what’s
wrong with using one of those systems? Well I did touch on that you will be restricted to selling through their particular systems so it won’t be exactly how you want it to be, so there are a restrictions
there, that’s one of the things that is not so good. The other thing of course is
now you are going to be selling typically on price, and as general business advice
I would try and steer you away from selling on price, but if you’ve got a particular brand, a t-shirt and one of your competitors has exactly
the same branded t-shirt then guys you are going to be competing on price because it’s just a
commodity item and you’re there side by side and in fact people are able to sort the
results by price. So what does this mean? It means if you
can find a supply of the particular product at a very cost-effective price it means
you’re on to a winner, but if somebody else’s get most products
in at a cheaper price or willing to take less profit, then it’s not gonna work so well for you. So there’s a lot of pros and cons to
think about so on the pro side of having a shop on eBay
or Amazon instantly you’re going to get footfall,
immediately people trust those two sites, it’s
certainly cheaper and it’s a lot easier to set up than
building your own site. On the downside of course you’ve got to
remember that you will be restricted to building a shop in their style and you won’t get a hundred percent
control over everything, and also you may end up competing on
price if you’re looking at selling commodity
items things that are available through a variety of
suppliers. So the key there of course is find your
own Niche products and services to sell through these two stores. What I want you to look
at now, I’ve deliberately put the links on this page for selling on eBay and on Amazon, so that you can go and take a look and
then really spend some time thinking about do I need my own e-commerce system? Could I be selling through eBay and or
Amazon? And the other option could be, do I start
through Ebay and/or Amazon, and build up to an
e-commerce site? So thats what I would like you to go away and think
about now.