Scalability
Websites | Marketplaces |
Scalable in the long run | Lacking the scalability needed to build a unique brand |
Can take time to set up, but will generate sales more easily | Easy set-up but often higher fees and lower bandwidth |
You fully own your platform | You use someone else’s platform and risk a sudden ban |
When building an eCommerce brand, you need to think about how you’ll scale your business in the future. The platform from which you sell your products will make a huge difference in this respect.
Websites
Websites are significantly more scalable than online marketplaces. While more time-consuming, you have complete control over how you sell your products. Once you’ve made a name for yourself, it’ll become much easier for people to visit your site directly.
You can also scale multiple aspects, such as your website design, to keep generating revenue in the long run. If you’re serious about building a long-term brand, making your own website is the best option.
Marketplaces
Marketplaces are a good way to get started with making money online. You can sell products in a more comfortable environment; you don’t need to worry about learning how to make a website from scratch. While this means you can get started more quickly, scaling can also become challenging.
As you sell more products on marketplaces, you’ll encounter constraints. For example, you may have to contend with high fees that significantly impact your profits. Moreover, you’ll be driving traffic to another platform instead of your own.
Winner: Website
Customization
Websites | Marketplaces |
Full-scale customization, especially with WordPress | Limited customization in most cases |
Choose your own hosting | Mostly reliant on another platform’s hosting, but you can sometimes choose |
Several plugins and themes | Often few to no plugins and themes |
Customization is vital when creating your brand, and it’s something you should strongly consider your options before setting everything up.
Marketplaces
One of the main trade-offs you make when using a marketplace is that you have very limited customization. You can tweak your profile and its description, along with the copy you use for listed products. While some platforms let you choose your own colors, this is not the case for all of them.
You typically can’t change the layout too much, which can be frustrating if you want to make a unique look. When it comes to brand-building, you often strengthen the platform’s brand rather than your own.
Websites
Websites, on the other hand, are infinitely more customizable – especially if you create an eCommerce website with WordPress. You can pick your own hosting, allowing you to choose a tool with free migrations, SSL certificates, and high-quality customer support.
With plugins and themes, you can completely choose how you want your site to look. For example, you can select premium themes to improve your branding and design. Moreover, you can add widgets and other cool elements – along with finetuning your security settings.
When creating your own site, it’s worth understanding the different types of web design. That way, you’ll be able to build something that converts customers.
Winner: Website
Beginner-Friendliness
Websites | Marketplaces |
Requires more technical expertise, but not necessarily difficult | Normally low to no-code |
Will require multiple steps | Typically can sign up and start selling |
Learning curve will lead to better growth in the long run | Your skills are capped with marketplaces |
Starting a new business is daunting at the best of times, but taking action can be difficult if you feel like the mountain you’re trying to climb is too high. So, it’s worth thinking about beginner-friendliness – though you’ll need to also consider long-term growth.
Marketplaces
Marketplaces are typically more beginner-friendly than websites. You just need to sign up, create a profile, and list your products. While you’re still responsible for marketing, you at least won’t have to spend time building a website.
Once you’re comfortable using marketplaces and you’ve learned about the basics of web design, you can then move on to creating your own site. Later, you can redesign your WordPress site if needed.
Websites
Creating a website requires a bit more expertise, but it’s not as difficult as it seems. These days, many themes will do the heavy lifting for you. All you need to do is replace each element with your own text and visuals.
Marketplaces are easier to begin with, but websites are still a better choice in the long run.
Winner: Marketplaces
Cost-Effectiveness
Websites | Marketplaces |
Upfront costs, but can be surprisingly cost-effective | Often no upfront cost, but you will have to pay with limited customization and other drawbacks |
Better control over fees, which can lead to lower long-term expenses | Fees vary but can be higher than running your own site |
No listing fees | Some marketplaces may have a listing fee |
Cost-effectiveness can make a big difference when setting up your website. You’ll want to ensure that you spend your money wisely, but at the same time, it’s a good idea to balance this with
Marketplaces
Marketplace fees vary. You’ll almost always need to pay a fee when you sell your items, and some platforms – such as Etsy – will require a payment to list your products. Depending on the one you choose, you may have to deal with exchange rates that don’t reflect the reality of the market.
Websites
Websites typically have ongoing maintenance fees, as well as startup costs. You’ll need to pay for:
Hosting: This can be quite affordable (you can start from $2.99/mo with Verpex, for example).
Website Themes: You can use free themes, but a paid one offers more customization and better responsiveness. Expect to pay around $100 for a good theme; some are one-time purchases, whereas others are annual.
Plugins: Many plugins are free, but it’s worth investing in premium plugins for important aspects like site security.
Websites are still more affordable to set up than you think, though. Since cost-effectiveness relies on so many factors, this section is a tie.
Winner: Tie
Security
Security is one of the most fundamental eCommerce aspects, and a breach can seriously damage your reputation. So, you should take this very seriously.
Websites | Marketplaces |
Responsible for your own security | Security is normally handled for you |
Full control over security procedures | Limits on how much security you can implement |
Websites
With your own website, you can control your security procedures. You have the option to choose which plugins you add and whether you want to take a firmer approach.
If you approach website security the right way, you can have something very powerful. This is particularly true if you use quality plugins and hosting that takes this seriously. You can use a website security checklist to ensure you cover everything.
Marketplaces
You don’t need to worry about customizing security with marketplaces. This is done on the backend, meaning that you can focus on selling your products.
The drawback of marketplaces, however, is that you can’t customize your security. Moreover, platforms aren’t immune to security breaches. You’ll need to implement multi-factor authentication and other procedures, too.
Winner: Tie
Traffic Generation
Without traffic, you can’t generate sales. However, you need to think about the long-term when building a business.
Websites | Marketplaces |
You own your traffic | Little to no control over traffic |
Customize your site for SEO | Reliant on the marketplace for promotion much of the time |
People visit your site to see your services | You’re competing with several other businesses for attention |
Websites
You own the traffic you generate for your website. You can use a mixture of search engine optimization (SEO) social media, and paid advertising to generate site visitors. Once you’re established, you’ll have a steady stream of people visiting and therefore a good level of income with the right strategy.
It’s true that building site traffic will take time, unless you already have an established brand elsewhere. However, the rewards are significant compared to marketplaces.
Marketplaces
Marketplaces sometimes help you promote your products and services. For example, they may feature you in their social media stories or on their website homepage.
However, you often have to compete with numerous other people for attention on marketplaces. Moreover, someone visiting your page might not be looking for what you offer.
Winner: Websites
Competition
Regardless of the space you get into, you will find eCommerce highly competitive. So, it’s always nice if you can do things that stop you from having to deal with even bigger amounts.
Websites | Marketplaces |
Competition in search engines | Competing with others on marketplaces |
You can nurture your audience when they visit your site | You’re still competing with others even after generating a lead |
Websites
When making your own website, you’ll still have competition in search engines and on social media. But once a user has clicked through, you have their full attention and more control to convert them into a paying customer. So, the competition is overall lower.
Marketplaces
Despite being easy to set up, marketplaces are fiercely competitive. You’re competing with thousands of other sellers, and standing out can be incredibly difficult. Because the barrier to entry is lower, more people will choose the same route.
Winner: Website
