Wednesday, 20 June 2018

Web Stores VS Marketplaces - Where to Shop ?

Web Stores VS Marketplaces
Web Stores VS Marketplaces -Where to Shop ?

With the rise of the Internet, we all are transformed into internet shoppers. Nearly 70% of millennials are shopping online. The biggest part of online shopping happens in marketplaces and large retailer shops. But there are lots of Web Stores, providing high-quality products, at good rates, that customer often ignore.

Amazon, Flipkart, Snapdeal etc. all seem a golden deal when they offer a Mega sale, right?
Well, there’s a dark catch to it too..

Buying from a marketplace is not that secure and soundproof as they show it on the advertisement. There are technical issues, refund/return headaches, and also, the customer services are painful.

Before proceeding with Web Stores vs Marketplaces, let's understand what is a marketplace.

What is a Marketplace?


Amazon, Flipkart, eBay, Jabong, Etsy and many more...
What all are they?
They are actually the middlemen, who bring the product or services to people who want them. For doing that, they get their commissions.

Reasons for Marketplace's Reach

To earn revenue from commissions, a marketplace must have lots of users.
I mean lots of sellers and lots of buyers.
Why Flipkart, Amazon, eBay, and Jabong managed to get such huge number of users?

Aggressive Advertising

The biggest reason is their marketing that is kind of aggressive.
They hire biggest marketing agencies, and do 24/7 advertising through all the media platform.
There is not even a single media platform where Amazon don't have ads on.




Offers and Sales

Other than advertising, they provide offers on products.
yes, the products are of worst quality, and most of the time they are out of stock, but they create hype by using the term "sale".
You may have heard of Big-Billion sale, or Diwali Sale.

But the reality is something else. The experience of people are not good with these marketplaces. Between Web Stores vs Market Places, Web Store does less promotion.

Reality of Marketplaces


According to wwd.com, In India alone, nearly 73% consumers have a bad experience with online marketplaces because of the common policy guidelines for every product.
Think about it.
How many times did you really get a chance to know the actual seller selling via Amazon/eBay etc..
You don’t because the marketplaces do not want the sellers to interact with the buyers as that way they can do business directly without paying the marketplace commissions.



My Experience with Amazon.in


I too have had a bad experience with Amazon.in where I ordered a handbag and the zip was of bad quality so it broke in a day. Now the Amazon.in people weren’t ready to pick up my calls or refund my money. The seller couldn't be contacted either. So, in the end, I had to settle for repairing the bag myself.
That's what happens when you trust a huge marketplace with 1 Lakh+ sellers. The return policy is not customisable for each product. If a part of your product is faulty you have to go through the whole exhausting process of refund/return.

Meerut man orders cellphone from Flipkart gets stone instead

Why people prefer Marketplaces?


People generally choose marketplaces over webstores for their trust in safe e-transactions. But the fact is, your e-transactions are also pretty secure because they leave a digital footprint which is indelible. Just in case, the webstore turns out to be fraudulent you can contact your bank and get the redressal with the help of a digital footprint. In rare cases, if you aren’t satisfied with the resolution provided by your bank there are consumer courts to protect a consumer’s interest.

Online reviews may mislead you into wrong purchase

Now here's the thing, a marketplace having 1 Lakh+ sellers also entails obvious competition. You might have noticed two sellers selling the exact same product but with a considerable price difference, that’s not always because one seller is offering to sell at a lower profit margin, more often it is because the sellers start compromising on the quality of the product so that they have a price advantage over other sellers. They don’t care about their brand or reputation because their brand name is not at stake.

Also, C'mon do you really think all these websites aren't earning their share? Only because they sell you stuff cheaper and later add on the shipping cost doesn’t necessarily mean they don't earn. Every online marketplace charges the sellers about 5% to 40% margin on every sale they make.


Web Store - The Best Alternative


So isn’t it a better idea of purchasing a product from the Brand Store website or websites of sellers instead of the profit earning middlemen like marketplaces?

Isn’t it better to purchase and be in touch with the seller directly?

Imagine NO hidden charges, longer guarantee and warranty and easy return policy.

Moreover, the Seller/Brand has a direct incentive to retain the customer via good customer & after-sales services when you shop directly on their website and If there's some problem you can contact them directly.


That’s what you call total transparency between the buyer and seller.


And when as a aware consumer you have an option of buying a product from a better source, So why not?


Pros of Buying from Web Stores


Direct Communication with the Seller

When you buy directly from a Web Store, it forms a connection with another person. That you will never be able to form when buying from a marketplace.
And these connection comes in handy. 

I remember when I bought a Nike Shoe from their web store. Now, at every birthday, I get a "Happy Birthday" message, with 50% off coupon just for me.

Brand - 200% Guaranteed

Yes.
When we buy products from a certified web store, there is no chance we will be getting a wrong or faulty product.
We will get the right and working product of the brand.

Active Customer Services

These web stores provide a good customer service. 
As their biggest marketing strategy is the word of mouths and good quality product, providing quality support is their necessity.

From shipping requests to refund or return, they give customers a priority.

Conclusion - Web Stores vs Marketplace

So, why don't give a chance, and buy from a webstore for a change.
See yourself the service they provide, then judge.
Tell me about your experience.

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