Why Smart Artisans Don’t Rely Solely on Online Marketplaces
Preserving Your Brand's Autonomy and Customer Connection
Diving deep into the world of online selling, this week I’m unravelling the pros and cons of Handmade Marketplaces and why it might not be the best strategy to put all your eggs in the marketplace basket.
Why sell on a Handmade Marketplace
Instant Audience Access
When you're just getting started, the allure of a ready-made audience is hard to resist, they are a great starting point. Online Marketplaces offer a substantial footfall that can be instantly accessed. No need for the painstaking process of audience building from scratch.
Built-in Trust Factor
Consumers often feel at ease shopping on a known platform. There's an implied level of trust because of secure payment methods, established return policies and reviews that provide social proof.
Simplified Selling Process
No need to set up a website, payment gateway, or worry about site downtimes. Marketplaces handle it all.
Discoverability
Being part of a bigger platform can mean you get picked up in their marketing campaigns, seasonal promotions, or featured listings, providing an additional boost.
Community Support
Being part of a larger community can be reassuring. You often have forums and support channels dedicated to sellers.
Here’s why you shouldn’t rely solely on selling via a Handmade Marketplace.
Lack of Brand Identity
In a marketplace, you're just one of many. It can be a challenge to stamp your unique identity and ethos when you're hemmed in by the platform's design constraints.
Fees and Commissions
Those sales aren't all yours. A significant portion might be taken as fees or commissions, and while it's the cost of doing business, it's crucial to be aware of how it impacts your bottom line.
Loss of Customer Connection
This is the main reason that I discourage reliance on a marketplace. On many platforms, you don't truly 'own' your customer relationship. There might be restrictions on how you communicate, making it challenging to cultivate loyalty or gather email data for future contact.
Marketplaces Hold the Power
From changing fee structures to delisting products without much notice, marketplace sellers are often at the platform's mercy.
Competition and Price Wars
Being in a crowded space means constant competition. This can sometimes lead to price wars, making it hard for artisans who want to maintain a premium for their craft.
Guarding Your Customer Data
One key risk of sole reliance on these platforms is letting them own your customer data. Marketplaces and also social platforms with shop functionality, get to gather all the insights about your audience, from buying habits to preferences - leaving you in the dark. This information is gold in the business realm. Not having access to this data denies you crucial insights to grow your business and weakens your direct relationship with your customers.
While marketplaces have their place, I strongly feel artisan brand owners should consider building a standalone website to run alongside their Marketplace store. Platforms like Shopify, Wix, Squarespace or WooCommerce make this more accessible than ever.
Furthermore, while social media is excellent for brand visibility, it can be fickle. Algorithm changes can play havoc with your visibility and what many sellers don’t realise is that you’re also opening up a channel for your competitors to directly target your followers.
Instead, focus on strengthening your direct communication channels like email, traditional post, or SMS. These provide a stable, direct line to your audience without intermediaries.
The good news is that there’s other ways to enjoy the benefits of discoverability and new audiences that Marketplaces offer.
Physical Pop Up / Stalls
There’s a good reason that even large established brands pop up at events with a stall. A physical presence at a busy location or market, even if temporary, allows insightful direct customer interaction and can be a great way to introduce people to your creative brand style and personality.
Be sure to encourage visitors onto your mailing list instead of just asking them to follow you on social media, so that you’ll always have a direct line of contact with them.
Affiliate Marketing
Partner with bloggers, influencers or brands with complementary products. This is the perfect opportunity to introduce your product to a new group of people and I’ve experienced first hand just how powerful this technique is.
Encourage the new audience to visit your own website/mailing list perhaps with a special offer when they subscribe or an entry into a giveaway.
A marketplace can be a great starting point for selling your handmade products, but I’d encourage you not to put all your creative eggs in one basket. Think long-term.
Build a holistic online presence and prioritise growing the channels that let you truly connect with your customers. After all, in the artisan world, it's those genuine connections that make all the difference.
Have you experienced an impact on marketplace sales due to an algorithm or rule change? Let me know in the comments!
If you’d like help migrating to your own platform, I empower Artisans just like you to set up their own beautiful Shopify website. Get in touch to learn more.
With love from my desk to yours, where this week there’s an open fire crackling as I write. Does this mean we can embrace jumpers & boots season?
LJ