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There is always a tug of war in the mind of an online seller: to sell on a popular marketplace or set up an independent store. Some sellers take a balanced approach of maintaining a presence in a marketplace while running their own store. As a businessperson, you have to think through the expenditure part to ensure maximization of your profits.

So what would be a cheaper option? There is no definite answer to this question. We will however try to work out a broad picture of online marketplace costs and online store costs.

Let us first take a look at the general pros and cons of selling on both.

An Online Store:

Table 1

An Online Marketplace:

Of course you can guide shoppers to your site through your marketplace presence. Let us now try to get an idea about the expenditure for both media.

Cost factors involved in setting up an Online (seller) Marketplace account

Most leading ecommerce sites offer free sign up, and invariably free listing.

At Amazon,

An example of the costs for a mobile phone worth Rs. 5,000

https://services.amazon.in/services/sell-on-amazon/pricing.html
Image courtesy: Amazon

At Flipkart,

The following table explains the collection format:

https://seller.flipkart.com/slp/pricing
Image courtesy: Flipkart Seller Hub

Cost factors involved in setting up an Online Store

To start your own store, you will need the following professionals:

Apart from that to get the business up and going, you will need:

This post on websitebuilderexpert.com gives realistic advice when it tells you to start slow. It suggests that you list out your requirements and start with a simple design and basic features. If you have a limited budget, you can also create a plug and play store at Shopify. Their rates are explained in the table given below:

https://www.shopify.in/pricing
Image courtesy Shopify

Shopify is one of the preferred choices of those who want to create their own website thanks to its reasonable rates and customization options.

The expenses incurred to set up a website surpass an average marketplace charges and costs. Having a presence in an ecommerce marketplace might be a good starting point. Begin investing carefully online and as your profits go up, you can create your own website. Retain a balance – your website helps you build your brand and make you stand out, while a marketplace helps you reach out to a wider audience.

Need more advice? Reach out to Browntape. We are India’s largest ecommerce solutions provider, and we can help you manage your online business.

 

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