Reason: More & More Customers Buying Direct Instead of 3rd Party Marketplaces Such as ETSY, Amazon, Walmart To Support Small Business & Independent Brands
According to the most recent data, more and more customers are choosing to buy direct from brands. For example, Statistica indicated that from 2019 to 2022, the overall D2C (Direct-to-Customer) purchases increased from 49% to 64%.
This is good news for individual brands, content creators and business owners who previously had to compete on competitive 3rd party marketplace platforms such as Amazon Seller, ETSY, and XYZ to sell their products / services. Naturally, selling direct still poses it’s own unique set of challenges, and it’s no easy feat penetrating the market. As with any business, it takes time, planning, strategy and dedication.
But for those willing to invest the time and effort, creating your own WordPress ecommerce website to sell direct to customers can prove more lucrative over the long-term. We say here long term, since it usually takes quite a bit of time for websites, products, and content to be indexed on search engines. With AI, this can now also be sped up significantly, but business owners will most likely see the fruit of their labor about 3 months to 12 months in.
In this article, we’ll be taking a look at the reason why customers are choosing to buy more and more directly from brand and individuals they follow, and the benefits for you as a brand or business to creating your own WordPress ecom website.
Let’s dive in!
Why Are Direct-to-Customer Purchases Increasing Versus Buying From Large Corporations or Marketplaces such as Amazon & ETSY?
- Personalization & Authenticity
Customers are increasingly choosing to buy directly from brands instead of marketplaces like Amazon for several reasons, which often revolve around seeking a more personalized, authentic, and satisfying shopping experience. - Brand Connection
Buying directly from a brand’s website allows customers to forge a closer connection with the brand. This direct interaction often translates into a more personalized shopping experience, with tailored recommendations and exclusive content that marketplaces cannot provide. - Customer Experience
Brands often offer a more curated and streamlined shopping experience on their own websites. They have more control over the presentation of their products, the shopping environment, and the overall customer journey, which can lead to higher satisfaction. - Exclusive Products and Promotions
As a business owner, content creator, freelancer, or business owner you can reserve your newest products, limited editions, and best promotions for sale on your own websites. This creates exclusivity as well as customization often not possible on 3rd party marketplaces where product setup variations are limited. - Better Customer Support
Direct purchases usually mean direct support from the brand, which can lead to quicker, more comprehensive, and more personalized customer service experiences. - Trust and Authenticity
Buying directly can reduce the risk of receiving counterfeit goods, a concern on some marketplaces. Customers trust that they’re getting authentic products straight from the source. - Loyalty Rewards
Many brands offer loyalty programs for direct purchasers, rewarding them with points, discounts, and other benefits that are not available through third-party marketplaces. - Data Privacy
Some customers prefer buying directly because they’re concerned about privacy and want to share their data only with brands they trust, rather than with third-party platforms. - Supporting the Brand or Individual Directly
There’s a growing consumer trend towards supporting businesses directly, especially smaller or local brands. Purchasing directly can be seen as a way to ensure more of the profit goes to the brand rather than to a third-party intermediary. - Customization Options
Direct purchases might offer more opportunities for product customization. This can range from simple gift messages to full-fledged product configurations that aren’t possible through marketplace interfaces. - Sustainability Concerns
Conscious consumers are increasingly concerned about sustainability and ethical practices. Buying directly from brands that clearly communicate their commitment to these values can reassure customers that their money is going towards products and companies that align with their beliefs. - Return on Investment (Personally & Monetarily):
Customers are becoming more conscious about the effects of technology and AI on the world and on fellow human beings. There is concern that large corporations are earning far beyond what is natural and ethical, and in turn eliminating small businesses, which often can online survive with community support. Small businesses are essential for a thriving community, country, and its economy. Customers realize that by supporting local shops, local businesses, and individual brands directly online they are often the sole reason why these small businesses and creators can make a living. - Eliminating 3rd Party Marketplace Fees
The fees third party marketplaces such as Amazon Seller, ETSY and the like charge can be diminishing for many brands and companies who already have to sell at a minimum just to be competitive. By selling direct, you have the chance to at least turn a profit and eliminate the need for putting money in the pocket of a marketplace.
The factors above is a handful of things that is contributing to a shifting consumer preference towards direct purchases. There are quite a lot more.
Why Your Own WordPress eCommerce Site Is More Lucrative
While third-party marketplaces like Amazon and Etsy provide platforms where you can quickly start selling your products, having your own WordPress eCommerce site offers several long-term benefits that can make it a more lucrative option for your business or brand.
- Brand Identity and Control: Your own eCommerce site gives you complete control over your brand’s presentation, from the website design to how your products are showcased. This control allows you to create a unique brand identity that stands out from the competition, something that’s often diluted on crowded marketplace platforms.
- Direct Customer Relationships: Owning your sales channel means you can build direct relationships with your customers. This direct interaction enables you to collect valuable customer data, understand their preferences, and tailor your marketing efforts more effectively, leading to higher customer retention and loyalty.
- Higher Profit Margins: Selling on your own site eliminates the need to pay commission fees to third-party marketplaces. While you’ll have to manage your own hosting and transaction fees, the overall cost is often lower, resulting in higher profit margins.
- SEO and Traffic: With your own WordPress eCommerce site, you can implement SEO strategies to drive organic traffic directly to your site. This not only reduces your reliance on marketplace traffic but also allows you to rank for specific keywords relevant to your products and brand.
- Customization and Scalability: WordPress, coupled with powerful eCommerce solutions like WooCommerce, offers unparalleled customization and scalability. You can start small and scale your business as needed, adding features and functionalities that cater specifically to your business requirements.
- Independence from Marketplace Policies: Operating your own eCommerce site means you’re not subject to the changing policies and fee structures of marketplaces. This independence ensures you have full control over your business operations and can adapt quickly to changes in the market.
- Enhanced Marketing Opportunities: Having your own site opens up a myriad of marketing opportunities, from email marketing campaigns targeting your customers directly to leveraging social media platforms to drive traffic and sales. These direct marketing channels can be more effective and cost-efficient than competing for visibility on crowded marketplaces.
- Marketing & Advertising Spent: Since you have to pay for marketing and advertising anyway, especially on sites like ETSY where advertising costs are often required to be competitive, you might as well use the same advertising spend to send traffic directly to your own website.
The PROS & CONS of a WordPress eCommerce Website
| PROS OF A WORDPRESS ECOMMERCE WEBSITE | CONS OF A WORDPRESS ECOMMERCE WEBSITE |
| Cost-Effectiveness: WordPress itself is free, and many of its eCommerce plugins, like WooCommerce, are also free or offer free versions. This makes it an affordable option for startups and small businesses. | Maintenance and Updates: Regular updates are required for WordPress, themes, and plugins to keep the site secure and functioning properly, which can be time-consuming. |
| Flexibility and Customizability: With thousands of themes and plugins, WordPress allows for extensive customization of your eCommerce site, enabling you to tailor your site to your exact needs and preferences. | Security Concerns: Being the most popular CMS, WordPress is a frequent target for hackers. While it can be secured with plugins and best practices, eCommerce sites may require additional security measures. |
| Ease of Use: WordPress is known for its user-friendly interface, making it accessible for beginners and those with limited technical expertise to set up and manage their online store. | Performance Issues: Without proper optimization, WordPress sites can become slow, especially with many plugins or high traffic, potentially harming user experience and SEO. |
| SEO-Friendly: WordPress offers excellent SEO capabilities, helping your website to rank higher in search engine results and attract more organic traffic. | Learning Curve: Despite its user-friendliness, there’s a learning curve to fully utilize WordPress’s capabilities, especially for customizing and optimizing your site. |
| Large Community Support: Being one of the most popular website platforms, WordPress has a vast community. This means ample resources, forums, and third-party services are available to support your eCommerce needs. | Costs Can Add Up: While WordPress and WooCommerce are free, costs can accumulate for premium themes, plugins, hosting, and additional functionalities required for a professional eCommerce site. |
| Scalability: WordPress websites can grow with your business. You can start with a basic online store and expand to a large eCommerce site, adding more products and functionalities as needed. | Hosting Requirements: WordPress requires you to arrange your own hosting, which means an additional recurring cost and the responsibility of choosing a reliable hosting provider. |
| Integration Capabilities: Easily integrate with various third-party services and tools, including payment gateways, shipping services, and email marketing platforms, enhancing the functionality of your eCommerce site. | Plugin Compatibility: With the vast number of plugins available, compatibility issues can arise, potentially affecting your site’s functionality and user experience. |
| Content Management: Beyond just an eCommerce platform, WordPress is a powerful content management system (CMS), making it easy to manage blogs, pages, and other content types alongside your online store. | Technical Challenges: For advanced customizations and troubleshooting, technical knowledge of PHP, CSS, and HTML may be required, which could necessitate hiring a developer. |
In conclusion, while third party marketplaces such as Walmart, ETSY and Amazon certainly offer sellers an easy way to enter into the marketplace to sell their goods, the long-term benefits of owning your WordPress eCommerce site—such as brand control, direct customer relationships, higher profit margins, and marketing independence—make it a more lucrative and sustainable option for growing your business or brand.
As consumer preferences continue to shift towards more authentic and personalized shopping experiences, the value of having full control over your own direct sales channels will only increase, highlighting the importance of investing in your own eCommerce presence.
When choosing between solutions for your eCommerce website such as Wix, Shoppify and all the rest, we have found that a WordPress eCommerce website offers a more flexible, cost-effective, and scalable solution for individuals and businesses looking to establish or grow their online presence.
However, it does require ongoing maintenance, optimization, and potentially additional security measures to ensure the site remains efficient, secure, and aligned with your business goals.
Weighing these pros and cons against your specific needs, resources, and technical capabilities will help you decide if WordPress is the right platform for your eCommerce venture.
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