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Five Point to Consider before selling on Jumia, Konga, Olx,Jiji etc

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As we all know it that there are many marketplaces available for every one where you can conveniently sell your product without owning a single website or knowing how to handle shipping, payment integration and other technicalities.

You can check my blog post on why you need to sell your products on marketplace via here

But before you conclude on selling on the public marketplace like Jumia, Konga, Olx, Jiji etc, the following five point worth looking into

  • LOSS OF INDEPENDENCE

For every serous business, reliability is highly essential. You must bear in mind that your business will continue to exist as long as the marketplaces continue to exist. If anything happens, which might lead to the closure of those platforms, bear in mind that your business sinks with it.

A beautiful example is the shutting down of deadey. It was in December 2018 that deadey shut finally. Dealdey was one of the most popular marketplaces offering best deals in all kinds of product and services. On dealdey, you can get lowest deals in premium training and good product. Vendors got lots of leads from dealdey. But alas, when the site was to shut down, little consideration was given to the happy vendors.

Another good example is konga. Though, konga is very much available. But you should be aware that konga has been sold to Zinox which will definitely affect policy changes. Customer responses and behaviors will change.

Hence, it is very paramount that if you are serious with your online business, you might need to think of running your own ecommerce website along with the general marketplace so that in case of any issue, you can easily migrate to your platform.

  • LOSS OF  IDENTITY

If you have ever bought anything on Jumia or konga, can you remember the name of the exact seller from whom you bought your item?

For just one commodity or product, there can be as much as ten different vendors. There are extensive pull of different vendors selling the same items at competitive prices.

Eventually, your identity will be shadowed by the marketplace activities. Your brand identity will suffer if you so much care for your identity.

There won’t be direct communication between you and your customers in an atmosphere of intimacy. Personalizing your interaction will be limited because; the psyche of an average buyer is that they are communicating with the marketplace.

  • LITTLE OR NO BRAND CUSTOMIZATION

Brand communication is essential in business communication. Brand identity helps to communicate your company’s culture, values and vision. Your online landing page should portray your color communication. If you have taken your time to visit sites like globacom and 9mobile, you will understand the concept of brand positioning on the internet.

When you are serious with your online branding, relying on general marketplace for your business will be suicidal.

  • PRICE WAR and HIGH COMPETITIVENESS

One of the major challenges in marketplace is the challenge of price war.  No matter the quality of your product or your cost of production, you can’t easily place your desired price on your product.

For every product to be sold, you must realize, it’s a business. It’s not how full your store is, not how beautiful and not how detailed; it’s how convenient it is to your buyers. Average buyers decide what to buy after perusing other available product for price comparison before determine their shopping decision.

In fact, if you are more interested in providing unique products with specialized look, quality, exquisite and customized, it’s more reliable to have you own website.

The highly competitive products that fall under price war are more of items like wears, sporting items, phones and accessories, computers, tablets etc.

  • LOSS OF CUSTOMERS PERSONALIZATION

For every serious online business, customer personalization is highly essential. You want to measure your customer behavior, you want to roll out personalized promo or discount offers for your customer, you want to analyze the performance of your product based on your customer behaviors. All these are most cases not possible.

Another reality you must face is that, those who buy from you are not your customers. They are the marketplace customers.

Providing a customer relationship management activities like analyzing your leads, sales, invoicing strategies are not possible on most marketplaces. Communicating directly to your buyers through calls or email are not even possible on some marketplaces thereby you losing a chance of getting come back buyers.

With all these said, it becomes imperative for serious minded online business owners to think beyond the cost of making their own ecommerce site or website.

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