The rise of e-commerce giants like eBay and Amazon has undoubtedly reshaped the retail landscape, offering convenience and competitive pricing to customers across the globe. However, while these platforms can be tempting for online retailers, there are several reasons why selling our products through them might not be the best decision for our store. In this blog post, we will discuss the disadvantages of selling on eBay and Amazon, both for sellers and buyers, and how these drawbacks can impact the overall customer experience.
Disadvantages for Sellers
- High Fees and Commissions: Both eBay and Amazon charge sellers various fees for using their platforms, which can significantly cut into our profits. These fees include listing fees, final value fees, and referral fees. For example, Amazon charges a referral fee that ranges from 6% to 45% depending on the product category.
- Limited Control over Branding and Customer Experience: When selling on third-party platforms, we lose control over our store’s branding and customer experience. The design, layout, and user interface are determined by the marketplace, not by us, which can hinder our ability to differentiate our brand and build customer loyalty.
- Intense Competition: eBay and Amazon are saturated with sellers, which makes it difficult for our store to stand out. Moreover, these platforms often prioritize their own products or those of larger sellers, making it even harder for smaller businesses like Babyz Corner to compete.
- Risk of Account Suspension: Both eBay and Amazon have strict rules and guidelines for sellers. Violating these policies can lead to account suspension or even termination, which can be devastating for our business.
Disadvantages for Buyers
- Counterfeit Products and Scams: The sheer size and reach of eBay and Amazon make them attractive targets for counterfeiters and scammers. A study by the Government Accountability Office (GAO) found that 20 of the 47 items they purchased from third-party sellers on popular e-commerce sites were counterfeit (2). Counterfeit products not only disappoint customers but can also be dangerous, as they often don’t meet safety standards.
- Inconsistent Product Quality and Customer Service: Due to the vast number of sellers on these platforms, product quality and customer service can be inconsistent. This inconsistency can lead to negative customer experiences, tarnishing your brand’s reputation.
- Hidden Fees and Shipping Costs: Some sellers on eBay and Amazon charge excessive shipping fees or have hidden costs, which can surprise and frustrate customers.
- Fake Reviews: This is the most disappointing part based on personal, friends and family experience. Trust us on this and majority of the reviews you see are not always true.
- Misleading Information: These fraudulent reviews are written by sellers themselves or paid reviewers to artificially inflate the rating of their products. As a result, buyers can be misled into purchasing low-quality or counterfeit items based on the false perception of high customer satisfaction.
- Erosion of Trust: Fake reviews undermine the trust buyers have in the marketplace and can make it challenging for them to make informed purchasing decisions. Customers may become hesitant to rely on reviews, which can negatively impact their overall shopping experience.
- Impact on Genuine Sellers: Fake reviews not only harm buyers but also disadvantage genuine sellers who rely on authentic customer feedback to promote their products. When the marketplace is flooded with fake reviews, honest sellers may struggle to gain visibility and attract customers.
By selling our products through our own e-commerce store, we can maintain control over the review process and ensure that the feedback provided to our customers is genuine and reliable. This can lead to a better customer experience and build trust in our brand.
Impact on Customer Experience
The disadvantages of selling on eBay and Amazon can lead to a subpar customer experience, which is detrimental to our e-commerce store’s success. Customers who encounter counterfeit products, poor customer service, or hidden fees may lose trust in our brand and choose not to shop with us again. This can result in negative reviews and word-of-mouth, further damaging our store’s reputation.
These are some of the major reasons why we stay away from marketplaces and prefer to sell our products through our own store. We want people to have satisfaction for the money they spent and also share experience of online buying at Babyz Corner.
