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There are many different benefits to selling products online, which is why more and more people are turning to this as a valuable way to earn consistent money. But in making that initial decision about where to list your products, it can be difficult to decide what’s truly in your best interests.

Deciding the Right Route for Your Business

One of the first decisions you’ll have to make is about whether or not to use a marketplace or to sell over e-commerce. The term online selling is a very general one. New sites for selling by e-commerce seemingly pop-up every single day and selecting the right place to list your products for sale can seem daunting.

Some merchants might choose to build their own website or to establish credibility by working with a marketplace that already has the traffic. Your own website would include installing on an e-commerce platform such as Magento, Shopify or Woo Commerce.

A marketplace, however, is a third party site that uses product listings from numerous sellers across product categories. Some of the most common examples of these third party sites include Walmart, Etsy, eBay, and Amazon.

Is There A Real Difference Between E-Commerce and Marketplace Sites?

The primary differences between choosing to sell an e-commerce site versus a marketplace are relatively simple.

One of the biggest reasons why people select marketplaces is because millions of visitors are instantly available to you. However, because of this great possibility to be visible, you will also be fighting with thousands of different sellers in order to be seen.

An e-commerce business is one way to differentiate yourself, but you have to put in significant effort in order to drive sales and send regular traffic to your site.

What Are Marketplace Benefits?

There are numerous different benefits to selling on a third party marketplace. First of all, it’s simple and convenient to get started as well as to maintain a presence here. The payment and transactions are often handled by the marketplace itself, which means that your primary job is in adding and modifying product listings so that they are as compelling as possible. There are many different visitors who probably already made purchases on these third party websites. They are highly trusted and very well trafficked places to visit. Since many of these marketplaces are household names, they have plenty of different shoppers who are looking for products just like yours. This means that although you have enhanced competition to get your products in front of your ideal customers, you will still not have to put forward as much effort as if you were having to drive traffic to your own website. There are, of course, downsides to selling on a marketplace like an Amazon FBA. First of all;

  • There are many different competing brands on the same site.
  • People who buy your products might never realize that you or your brand exists.
  • You aren’t capturing customer detail information so that you can build a customer list and market to it in the future. This can be a major downside if you ultimately decided to move off of the platform.

No matter how you choose to build your e-commerce business, such as using Amazon FBA or other tools, it’s a good idea to have a consultation with an experienced website broker like those working at Website Closers when it comes time to sell your business.

 

If you’re an online retailer selling on an e-commerce site like Amazon FBA or your own website, you’ve probably already encountered and struggled with the problem of shopping cart abandonment, which happens when a customer adds an item to their cart but then leaves the site prior to checking out. This is known as cart abandonment on Amazon.

Can You Fix Cart Abandonment?

Since you can’t always tell how long or why a person put your item into their shopping cart but never checked out, details you glean from your own website can help you address these issues on Amazon. As an Amazon FBA seller, you must me mindful of cart abandonment on Amazon even if you cannot address all the causes behind it.

E-commerce businesses of all sizes and shapes experience cart abandonment, and there are steps that you can take to increase the chances that the person will become a converted buyer and check out with the items in their cart. Your cart abandonment rate is something you should calculate and better understand, especially if you operate your own website.

How to Determine Cart Abandonment Rates When You Have Data Access

Your cart abandonment rate equals 1- {the total number of shoppers who checked out with their transactions divided by the total number of shoppers who added something to their cart}. Any e-commerce merchant will be familiar with cart abandonment and understand that it’s a major pain point that keeps you from being able to grow your profits. It’s simple, however, to ignore how much of a major impact cart abandonment can have.

It’s anticipated that more than $4.6 trillion in sales on e-commerce website are lost every single year due to cart abandonment. The most likely items to be abandoned in a cart are clothing, tech and housewares, and nearly half of all shoppers admit to abandoning something during a check out in the past year. That’s compared with only one-quarter of people who walk away from a purchase in an actual brick and mortar store.

Average cart abandonment rates across all industries are over 75%. This happens every single day, and mobile drives a tremendous amount of e-commerce traffic, but has even a higher average abandonment rate of 80%.

Some of the most common concerns that lead customers to abandon their car include:

  • Issues related to security
  • Complex check out procedures
  • Required registration
  • Hidden fees and costs
  • High shipping costs

There are things you can do to evaluate your current cart abandonment statistics and work to improve them. This will not only enhance your profits but the overall experience that customers have in working with you, and this process is instrumental in protecting your business if you are an e-commerce site operating on your own.

If an average check out form contains 15 fields, for example, you can simplify a check out by reducing this. Showcase your security credentials, be upfront about any fees and costs and offer affordable shipping. All of these can entice a buyer who is already on the edge of checking out with your product in their cart, to taking the next step.

 

Remember the most recent time you purchased something, and the product didn’t show up, showed up late or was damaged. Did you ever make a purchase from that seller again? According to some research, nearly 40% of customers say they’ll never shop again with a company after they’ve had a bad delivery experience.

Most people choose to work with Amazon since the company already has a solid structure in place for accepting and shipping orders in a timely fashion. This can be a problem for someone who has to handle the shipping on their own, but Amazon FBA makes sure that is taken care of from Amazon’s end.

Keep this in mind as you choose to structure your own online business. More business owners than ever are turning to Amazon FBA because the fulfillment is handled completely by Amazon, taking these delivery concerns off of your plate. Order fulfillment refers to the process of getting, packaging, processing, picking and shipping orders.

A third-party fulfillment services provider or partnering with Amazon FBA is critical for developing an effective order fulfillment strategy. This builds customer loyalty and causes people to feel trust in your business.

There’s no way to determine a one size fits all fulfillment strategy, but there are numerous important things to keep in mind when deciding how to scale fulfillment for the online store.

Many people turn to Amazon FBA for selling a high volume of orders because doing the research on your end means you can hand over much of the fulfillment to Amazon’s processes.

The total volume of products you sell and your total monthly volume of orders plays a significant role in identifying the fulfillment solution right for you. Low order volume can assist with the cost effective nature for you to maintain your fulfillment inhouse instead of outsourcing.

If you can sell a limited volume of products and only handle shipping a few orders each week, you likely don’t need a warehouse system for management or a full inventory.

However, if your order value is slowly increasing or if your business is growing quickly, you can tap into the power of the customers already visiting Amazon’s website and use this to your advantage in selling your products.

Order fulfillment management that already works with your existing e-commerce platform makes things much easier, which is why Amazon FBA is a leading way for third party sellers to get involved.

When partnering with Amazon FBA, you can ensure that the fulfillment options are aligned specifically with what customers have come to expect. Since many people are familiar with the Amazon brand and have a high level of trust in it, when it comes to sell your business you can leverage the power of experienced and knowledgeable business brokers to list your company for sale and obtain a buyer request sooner rather than later.

The support of an experienced business broker is instrumental in outlining a strategy for you to sell your company as soon as possible and receive maximum compensation for the profits you have worked so hard to build.

 

Selling your small business for the highest possible price is likely the result of many years of persistence and dedication. In fact, this might have been the dream when you launched your company.

But it can be very hard to find buyers for your business if you are not in a position to collect solicited offers or in a hot and popular niche.

The best way to gain access to a larger pool of qualified buyers and a more structured and efficient selling process is by working directly with an experienced business broker.

Much like a real estate agent, a business broker serves as a sort of matchmaking service to bring together sellers and buyers. The expertise of the right business broker can help you to get the highest possible sales price and make the process easier for you. There are several different ways that you can find a business broker.

Practice Your Own Due Diligence

Just as any prospective buyer of your company will do their own due diligence to complete research, you should too. Look at the broker’s experience, background and credentials. Have any complaints been launched against the broker, review the business bureau website and investigate the references provided by the business broker company. Make sure that you ask direct questions about whether or not they have handled this kind of business before.

Keep the Sale A Secret

If you are the chief person in charge of the company, avoid losing key suppliers and staff. Do not tell them that your business is for sale until you and the business broker are ready to move forward. The sale of your company is a very confidential matter and your business broker should have the same approach by ensuring all necessary safeguards are in place to protect the value of your company. One slipped word to your employees, supplier or customers that you’re selling could have negative repercussions for your business operations.

Be Aware of Upfront Fees

Business brokers charge fees ranging from 10% to 15% commission, based on the sale price of your company. But be aware of any broker that is asking you for a significant fee upfront just to complete a business valuation or start any application process. Your business broker should be able to explain their individual process to you before you get started.

Consider the Marketing Plan and How This Will Influence Your Business Sale

Appropriately positioning the sale of your company to motivate and attract the buyers should be your top goal. Make sure that your business broker has a thorough marketing plan, including explanations about marketing strategies that could bring in a number of different types of valuable leads. Your broker should be able to walk you through how they’ve been in situations like this before and have helped people to prepare as effectively as possible. You should have a high level of confidence in your business broker’s ability to sell your company.

Since it’s such a personal issue, but also one that touches on your professional boundaries, you need to retain the services of someone you can trust and someone who has extensive experience in this field. Don’t hesitate to ask questions of the business broker during your initial conversation. You should feel confident and excited about the opportunity to work directly with a broker who knows exactly what they’re doing.

 

 

After you have developed an idea for your online store and put together a plan for the sourcing of a product, this alone in itself is not enough to do the heavy lifting for your Amazon FBA business or your e-commerce business. You can save energy, time, and money by understanding all of these issues before you even try to start selling online.

The first issue to consider in launching an e-commerce business is taxes. Every state in the country has different standards, rules, and expectations when it comes to taxes. You must be prepared to conduct your research and understand your target market, as well as how taxes will influence your overall selling and administration. Furthermore, consider the payment gateways available for different e-commerce businesses.

You should not feel restricted by the fact that many of these have limitations on certain types of services or products that you might want to sell. Evaluate all the different payment gateways available to you and make sure to ask if they have limitations around certain products. Some of the most common types of payment gateways include PayPal, Square, and Stripe.

Leveraging an Amazon FBA business means that it is possible for a person to purchase something on Amazon with any payment method that that company accepts.

Another issue to consider is you want your business, particularly if you intend to add a website, has to do with trademarks, patents, and copyrights. There are many different misconceptions about what each of these words mean, so it is a good idea to sit down with an experienced business attorney to understand the differences between these terms and how they can influence you.

Many shipping companies will post their shipping restrictions, and these should be carefully reviewed by a person who’s thinking about launching an e-commerce business. Typical restrictions include those having to do with nail polish, explosives, aerosols, alcoholic beverages, ammunition, cigarettes, poison, and perishables. Some providers may enable you to ship these restricted items but will ask for extra paperwork and fees. Your business may not be affected by any of these restricted items at all, but in the event that it is make sure you do your research about shipping options.

If you are holding substantial inventory and are not working through something like Amazon FBA, which is holding all of your inventory for you, you’ll want to consider the lease deed or zoning codes for your substantial inventory. There may be established prohibitions about running a business like the one that you intend to run out of your home. Zoning laws matter, and a knowledgeable attorney who is familiar with these can help you to avoid mistakes.

Now is the time to schedule a consultation with a business attorney. When it comes time to sell your company, the established business brokers can help you to accomplish your goals and make sure that you have access to a network of many prospective buyers.