For beginners, they are often confused about which platform to choose to start up their business. Most of them fail to do proper research and end up with an inappropriate or dull e-commerce platform which eventually causes them to go out of business. Learning and understanding the e-commerce platform before you make the decision seems to be a very important thing.
Nearly 80% failure rate in e-commerce platform recorded in the year 2016. Another study claims that at times the possibilities of an online store to fold are up to 97%. Starting up an e-commerce platform isn’t very expensive.
However, a high percentage of failure rate is what that become the most challenging part for many e-commerce platform owners to attain success. Factors such as lack of traffic, insufficient capital or investment to run the store, lousy product description or photography which may look like a scam, being easy about competitors, and horrible cash flow management lead to the major pitfall of an e-commerce store. Hope that through our article, you can consider some necessaries points before you choose a good e-commerce platform.
Top 5 e-commerce platforms for you to choose to have a successful business online
With the development of e-commerce, a large number of popular e-commerce platforms have emerged. A large number of domestic and foreign sellers set up shop on them, forming a global atmosphere of setting up shop. TOP 5 e-commerce platforms include Amazon, eBay, Wish, Shopify, and AliExpress.
World’s Number One e-commerce platform with a massive marketplace around the world. You can gain tons of traffic to your store from millions of visitors who scroll over Amazon every single day.
Similar to Amazon, eBay is a one-stop shopping platform to get everything you need at an affordable price. So eBay is another best e-commerce platform to set up your online store.
Founded in 2010, Wish.com has made its way to reach plenty of people in an extensive range over the years. With Wish mobile app, shopping had made easy and fun, and this drastically increases the number of visitors towards Wish.com and become one of the most active e-commerce platforms.
Starting up a new online store has never been so easy with Shopify. Shopify provides you with real-time sales statistics to manage your cost and revenue system better. Shopify made it effortless to start up an online store even without any products since it allows drop shipping products from different e-commerce platforms or online stores.
At fifth position, we have AliExpress for its unlimited number of visitors that have the potential to drive more traffic to your store with ease. Aliexpress ranked as the 35th most traffic driving e-commerce platform in global range (AlexaTrafficRanks, 2019).
Advantages of the E-commerce platforms
Apart from these top five e-commerce platforms, they are plenty of other China-based online platforms such as TaoBao.com, Tmall.com, and WechatShops for you to sell your product or services. Naturally speaking, China is one among the countries with massive populations. So, more people equals more traffic and eventually more reach for your store. Despite, there are few pros and cons you need to consider before choosing a Chinese E-commerce platform to kick start your business.
#1 E-commerce platforms in China have a huge marketplace that drives more traffic. Evidence proves that Alibaba.com, a China-based e-commerce platform had handled more transactions compared to world-famous Amazon and eBay.
#2 Emerging mobile market. With more and more people in China gaining access to smartphones and online store apps, the higher the chances to have a massive number of online shoppers from China itself shortly.
#3 High preference for quality and luxury goods. Currently, many people with middle class to upper-class status in China prefer to purchase and use good quality products rather than duplicate ones. They focus more on quality than the price. Thus, it is an excellent chance for e-commerce store owners to showcase their product with high quality than with a lower rate.
Disadvantages of the E-commerce platforms
#1 Despite the middle-class families who prefer high ended goods, they are still half a percentage in the villages and rural areas who get excited about free stuff and hunt for cheaper prices or discounts at online stores. So this can severely affect your profit margin.
#2 Language barriers are something that is quite difficult to tackle. A few percentages of people in China can understand English. Thus, you need to appoint local sales associates online who will be able to offer help and advice to potential buyers.
#3 The process of adhering to the legal requirement is quite lengthy and exhausting.
How to choose a good e-commerce platform?
Being said that, choosing a good e-commerce platform for your business is crucial to avoid potential failures. If you are a small business and planning to scale it slow but steady, the first thing you need to do is compare. The comparison makes everything much clearer.
1. Choose e-commerce platform according to the product price
Make sure to compare and choose a suitable platform according to the product that you plan to sell. If your product is at a lower rate, then opt for any China-based platforms or Wish.com. Whereas if the product is more on the higher -end, then Amazon will do the right job.
2. Choose e-commerce platform according to the payment methods
Compare the various payment method that the platform offers. It all depends on your target audience. If you target to reach USA, UK marketplace, then a platform that provides payment thru PayPal, Credit card such as eBay, Shopify and Amazon will be good.
3. Choose e-commerce platform according to the cost of the platform
Compare the cost of the platform. Calculate how much each platform charges you to set up your store and match it with your budget. Amazon and Shopify are more on the expensive sites, but if you have the budget, you can choose to sell there. On the other hand, eBay and Wish are excellent for people with limited capital.
4. Choose e-commerce platform according to the efficiency of logistic.
you need to compare the efficiency of logistic arrangements of each e-commerce platform. If you are someone who concerns about good customer service, then fastest shipping is the best way to gain loyal customers. Amazon and Shopify are among the fastest delivering platforms whereas AliExpress will take about 3-4 weeks’ time to ship the product.
In short, e-commerce platform is easy to start, but there are many essential things you need to put an eye on before and after starting up your business. Be wise while choosing an e-commerce platform and scale your business to a higher level over time.