As a merchant, you have two main platforms through which you can offer goods and services – a marketplace or your very own independent e-commerce site. Both options, undoubtedly come with their perks and flaws. Many small business owners decide to kick off their business through a marketplace as this seems less intimidating than having their own e-commerce store. However, is that truly the best option for your business and does it suit your retail needs?
Benefits of an Independent E-commerce Site
Getting Lost In a Marketplace
Small retailers can easily get lost in the shuffle of large marketplaces such as eBay or Amazon. Many other retailers are likely to sell similar products to what you are offering. Furthermore, this means that they are likely using similar descriptions, photos, and titles to list products. These qualities are the only way for merchants to differentiate themselves from the competition which may be difficult in this type of circumstance.
Personalized Shopping Experience
By selling through their own site, merchants can market their goods and service in their own unique way. Additionally, this gives businesses the opportunity to showcase their brand persona and add personality to their site. This undoubtedly gives the shopping experience a personal touch and humanizes the business. Furthermore, merchants can create a sense of trust among customers, which will build loyalty and potential repeat purchases.
More Marketplaces = More Hassle
Many new business owners consider listing their goods or services on multiple marketplaces. The benefits of this seem straightforward – more marketplaces equal more traffic, which equals more sales. However, listing on several marketplaces comes with its own price. Every marketplace comes with its own specifications and guidelines. Abiding by each platform’s own guidelines becomes a daily task that is not easily manageable.
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Transferring to an Independent E-commerce Site
Many things must be considered when transferring to an independent e-commerce site. However, one of the aspects which concern merchants the most is their payment methods, processes, and solution. When using a marketplace, payment processing takes place automatically through the platform. On the contrary, this responsibility falls on the merchant when using their own site.
The transfer doesn’t have to be difficult, however, as many payment companies provide solutions to cross-border payment and streamline the process entirely. Companies, such as Oceanpayment, allow any business to accept and reconcile all payments quickly and efficiently. Additionally, such companies can play a large role in acquiring, something that is vital in any independent e-commerce store.
What is Acquiring?
An acquirer is a company or bank that processes the payments of a business. Simply put, it sends authorization requests through card networks such as MasterCard or Visa to the customer’s bank. The payment is then either accepted or rejected. This, of course, is a process that is much more complicated than it seems. There are many aspects that an acquirer takes care of on behalf of the merchant such as licensing, regulations in the specific market, risk management, and fraud prevention. These are all aspects that may be difficult to manage by a business owner but are easily manageable by a payment solution provider.
How to Choose Good Acquirer?
It is vital for a merchant to choose the right acquirer in order to guarantee the success of their business in the long-run. Merchants must choose an acquirer that takes care of all aspects in regards to cross-border payments such as legalities, risk management, and fraud prevention. Additionally, business owners must consider options that provide seamless payments and billing for their clients.
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