The Complexities of Big Name E-Commerce Platforms

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E-commerce is a great tool to expand your business’s footprint, create a new one, experiment with different products, and ultimately discover new things. It solves the limitations presented by selling solely through brick and mortar and provides a space where all of your creations can live and a place to explore the creations around you.
 
However, the discrepancies that exist between major e-commerce platforms make it difficult to understand how they ultimately affect your business. Between the underlying costs and fees alongside the complexities of building a customer base, it can be a real challenge. It's worth understanding the complexities of two of the most popular e-commerce platforms, Etsy and Amazon.

Etsy. Complications Arise In The Fees

Like CTXMarket.com, Etsy is an online marketplace that facilitates the buying and selling of handmade products. Whereas we focus on one specific region, Central Texas, Etsy facilitates sales from around the world. While this may attract a broader customer base, it also means an influx in sellers. With more than 4.3 million sellers on Etsy, complications arise when trying to sell in a saturated market. The way Etsy is structured, even when you are not making sales you're still charged listing and advertising fees. This, on top of transaction fees, gets pricey quickly. Fees include:
 
• Etsy Listing Fees: $0.20 for every listing posted. These listing auto renew at $0.20 per listing every four months, and listings sold in quantities require a $0.20 renewal on every item sold
• Etsy Transaction Fees: 5% fee on all sales based on the listing price plus the price of shipping.
• Etsy Ads: Etsy Ads are paid for on a CPC (cost-per-click basis). Etsy recommends a daily budget of at least $3-$5 per listing.
• Etsy Offsite Ads: Makers who sell more than $10,000 in sales in one year are required to participate in offsite ads. Offisite ads have a 30 day lifespan. When customers click on your ad and return to your store within 30 days, you are charged 12%-15% of their total order.

Amazon. Who’s Really In Charge?

When it comes to e-commerce, Amazon has a hand in just about everything. It only makes sense they would venture into the artisan department with Amazon Handmade. Amazon Handmade was launched just six months after Etsy went public in 2015 with an evaluation of $3 billion.
 
However, whereas the complications arise in the fee structure of Etsy, complications with Amazon Handmade are rooted in the complexities of doing business with them. First and foremost, Amazon has structured its platform with stringent guidelines on what you can or can’t sell. Among these guidelines, makers are not allowed to sell food and or live plants, which as we have seen through CTXMarket.com, are both widely popular categories.
 
Second, you should be aware that you’re selling to Amazon customers, not yours. The guidelines they have implemented suggests they are very protective over their customer base, and using their platform to grow your own is made difficult through the Seller Code Of Conduct. Here are a few key takeaways:
 
• No Outside Marketing: Makers are prohibited from directing customers to external links outside of the Amazon website (for instance, your own website). If customers want to explore your creations outside of Amazon, they have to do so without your marketing efforts.
• Limited Customer Engagement: Makers are only allowed to communicate with customers through the Buyer-Seller Messaging. To communicate outside of their messaging platform would violate their code of conduct. Outside marketing is also prohibited through the Amazon messenger. All contact info received to fulfill an order must be deleted immediately after, prohibiting makers from building a clientele list.
 

It Shouldn’t Be This Complicated 

All of this is to say the discrepancies that exist between major e-commerce platforms makes it difficult to understand how they will ultimately affect you and your business. From the extensive amount of fees, to the exhaustive complexities of doing business, you shouldn’t have to deep dive into the back-end of a seller’s guide or scour through the policies to understand what you stand to profit and or how certain platforms will affect the future of your business. At CTXMarket.com, we believe in complete transparency and that is exactly what you will get. 
 
To learn more visit, About.CTXMarket.com

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