Online shop or marketplace – Part 2

The decision between your own online shop and Marketplace: We show you the advantages and disadvantages for B2B companies – Part 2

In the last blog post, we talked about the decision between running your own online shop and selling via established online marketplaces, as well as the many exciting possibilities!

In this issue, we would like to highlight two more aspects to consider when deciding between your own webshop or marketplace. So stay tuned!

Customer data and relationships:

➢ Advantages of your own online shop

Direct access to customer data: Companies have direct access to customer data, which gives them the opportunity to maintain relationships and develop customised marketing strategies. This also gives them the opportunity to develop their own customer community.

➢ Disadvantages of having your own online shop

Possible loss of trust: Potential buyers may be reluctant to entrust their personal data to an online shop they don’t know.

Building the customer base: It takes time to build up a customer base.

➢ Marketplace advantages

Quick access to customers: The marketplace’s established user group gives companies accelerated access to potential customers.

Trust through an established platform: Established marketplaces often enjoy the trust of customers, which can facilitate the development of relationships.

➢ Marketplace disadvantages

Limited access to customer data: Marketplaces often retain a significant proportion of customer data for their own purposes.

Dependence on the marketplace: Companies’ communication with customers is largely determined by the rules and regulations of the marketplace in which they operate.

Competition and positioning:

➢ Advantages of your own online shop

Unique positioning: By opening their own webshop, companies can support their unique positioning and gain a competitive advantage over their rivals. They can also present their products in their own environment without immediately being compared to competitor products.

➢ Disadvantages of having your own online shop

Time to awareness: It might take a while for a customised online shop to get enough attention, and it might require additional marketing.

➢ Marketplace advantages

Immediate visibility: Marketplaces ensure immediate visibility due to their existing user base.

Access to customers of other providers: It is easy for customers to compare products from different providers.

➢ Marketplace disadvantages

Difficult to differentiate: It can be challenging to stand out in a marketplace because the presentation of products is often similar.

Intense competition: Markets are often more competitive, which can lead to lower profit margins.

The decision between having your own online shop and using a marketplace depends heavily on a company’s individual goals and resources. It is crucial to thoroughly weigh up the pros and cons in order to select the right sales strategy that meets the company’s long-term goals. For B2B companies in particular, it may make sense to combine both approaches in order to exploit the strengths and minimise the weaknesses. One possible strategy could be to initially sell via marketplaces in order to gain insights into customer wishes and behaviour. These insights could then be used when developing your own web shop in order to be able to act in a more targeted manner and incorporate the experience gained from marketplace sales.

A Product Information Management (PIM) system proves to be extremely beneficial for both online marketplaces and B2B companies’ own online shops. It provides central tools to organise and improve product information, which contributes significantly to increasing the efficiency and performance of a company’s online presence.