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Online Store Vs Marketplaces- Where Should You Sell Online In India

Online store vs Marketplaces

Increasing number of online marketplaces in India provide tremendous opportunity for anyone to start selling online. Both Online stores and marketplaces have have their own benefits and limitations. 

The most common question online sellers without any previous experience, have is whether they should start with selling on marketplaces or on their own online store. If you are a new seller, you may have this question in your mind. Answer to that question is not simple. You will have to weigh the pros and cons yourself and have to take the decision according to your business goals.

In the following post, we’ll discuss the pros and cons of selling on online store vs marketplaces. We have done  our best to give you a helping hand. We hope by the end of this post, you’ll know what works best for you. 

Online Store Vs. Marketplaces

About Selling On Marketplaces

1. Marketplaces are the best platforms for non-techie and beginners who are not familiar with online selling business. Small and medium enterprises can sell their products without any geographical limits at a nominal cost. Anyone who has never sold offline can also start selling on marketplaces.

2. It is easy to get started as a seller on marketplaces. Just enter your details and upload documents. You are ready to sell.

RELATED: Best Online Marketplaces In India That Can Make You Rich

3. You can start with low investment of as low as 5000 rupees or even less if you purchase from wholesaler after receiving order.

4. Marketplaces have earned the trust of customers and have customer base in millions. This is the biggest advantage as it takes lots of hard work and time to build a loyal customer network. As a new seller, it is very difficult to find customers so it makes sense to sell on marketplaces.

Online store vs Marketplaces

5. Marketplace customers give feedback and ratings to sellers. This feedback helps you make improvement in your offerings. With good ratings, you win the trust of customers which leads to increased sales volume.

6. One of the major advantage of selling on marketplaces like Amazon is they have a global presence. You get access to those customers and are able to start your export business without any complicated work. Amazon also handles the work of  product storage, shipping and service to customer.

7. When you start selling at the marketplace you learn the tips and tricks and gain the experience of selling online and are prepared to launch big business.

About Selling on Online Store

1. Online stores are better suited for brands or companies who need online presence and to supplement or complement their offline activities.

2. With online store, you have your own control and have more authority. You set your own rules. As you have access to buyers data, you can send customized emails about offers, future launches and more.

3. Its easy to create your own brand with an online store. You can easily differentiate yourself like any other big company on the internet.

4. There is a fierce competition on marketplaces. Customers have a choice of buying from other customers selling similar products at a better price or selling with special offers. When you are running your own store, customers see only your offerings unless they move to some other website.

5. When you sell on marketplaces, you need to pay commissions on every sale.  But, as an online store owner, you are the boss, so this amount is saved.

Online store vs Marketplaces

6. While selling on marketplaces, you are competing with other buyers, so you have to lower prices which reduces your profits. When you sell on your own online store, you can fix prices without bothering to lower below certain point.

7. As a new seller, it can be bit risky to open your online store as it involves heavy investment and you have to keep inventory. You also have to invest in warehouse, logistics and advertising to make your brand popular. Unless are a reputed brand, have a unique idea & have identified a niche, selling at marketplace is a good option. 

If you have made up your mind to open store, Shopify is the best SAAS platform where you can start building your store.

Online store vs Marketplaces


Despite the advantages of having your own online store, a new seller should start with selling on marketplaces first. Get some experience and build your customer base.  It is less complicated and is straight forward than selling on online store which requires more investment and you have to handle everything on your own. Keep learning and studying while selling at marketplaces. Come with a new unique idea and then launch for great success.

It should be a part of your business strategy to have your own online store once you have enough experience. By running your own store along with selling on marketplaces you will be able to make your brand popular and will build a really big business.