Are you a new Internet entrepreneur who is wondering whether to build your own website or open an eBay store? Many people tend to open an eBay business because it is always easier to do so, but is that what is most suitable to make your e-commerce dream come true? Before you decide on the route to take, it is important that you go through the following pros and cons of both to help you make an informed decision.
eBay business is an online auction where anyone can sell their item at a fee. Payment is done with debit/credit card or the other popular payment methods such as PayPal. These payment methods keep the customers’ personal details confidential in order to prevent unauthorised persons from carrying out fraudulent transactions. Once payment has been made, eBay deducts its charges, which is normally a percentage of the initial fee posted and the final sale. If you wish to sell a single or a few items then opening an eBay store is a good option.
Instant money: eBay allows you the freedom to choose the period within which you want the auction process to run. You, therefore, get instant cash whenever you need it.
Anything sells: With eBay, you can sell products of all kinds. They could be used or new items, from household items, electronics, cars, clothes, books, tools to beauty products, and much more.
Easy to open: It is quite easy to open an eBay store and display your products. Once you open an eBay account, you are provided with a unique URL which you can then use to drive traffic to your eBay store. You, however, have to pay certain monthly charges in order to keep your eBay store open. This therefore means that without lots of products to sell then the eBay is not worth wasting money on.
Feedback: eBay allows you to receive and send feedback to your customers. This helps in ensuring that items are properly described and any mistakes in description rectified.
Higher fees: The commission charged on every item sold and the monthly charges paid to ensure that one’s eBay store is not closed down are among its downfall. The least you can spend to set up an eBay store per month is $15.95. Depending on its status, it could cost you up to $49.95 per month.
High competition: There are so many competing sellers on eBay. This might force you to sell your products at the least prices so as to attract customers. This affects the amount of profit you make. Given the high monthly charges, you might not even afford to run it for a long time.
Your Own Website
Establishing your own website from where to display and sell your products comes with a lot of benefits as compared to opening an eBay store. It becomes even better if you are skilled in publishing desktop or are good at basic web design. This then gives you an opportunity to showcase your creativity and have a better chance of obtaining better results from your website than in a pre-formatted eBay
Higher profit margins: Unlike eBay store charges that are paid monthly, your own website might just require you to pay annual hosting fees. Any additional costs are all up to you and this therefore implies that you may get far much profit especially if you have a good ranking website.
Much less competition: As compared to selling your merchandise on eBay, there is less competition when you have your own ecommerce website. This is because once you attract traffic to your site and through your creative ability portray authority and credibility over what you are selling, potential customers will always come to you rather than search for sellers randomly. With your own ecommerce website you can choose the “sell it now” option and get rid of the auctioning process.
It takes time to gain traffic: When you establish your own ecommerce website, it is advisable to be patient as it takes time to drive traffic to your website. However, this period could reduce if you add blogs to your site and post quality, interesting and knowledgeable posts or utilise targeted PPC campaigns.
You have a small niche: Operating your own website means that you have a smaller niche as compared to the extensive eBay environment. Finally, truth be told, both methods are equally important for any business that wants to exhaust all its options. There is no rule/law that is against the setting up of your own website and have an eBay store. Therefore, it is important that you use both methods for maximum gains.
At Styles Creative, we have created hundreds of profitable ecommerce websites and we can help you too. Contact us today for more insight.