E-COMMERCE SELLERS – IS THE UK’S ONBUY.COM WORTH YOUR TIME?
When it comes to e-commerce selling, adding more and more sales platforms is not always advisable.
In the era of e-commerce selling, several e-commerce marketplaces are industry leaders such as Amazon and eBay. However, in some countries the industry leaders are not favoured, and smaller e-commerce selling platform actually exceed against the larger marketplace..
Regional E-commerce Sales
In France for example, Cdiscount is favoured by the French over Amazon.fr. Now that may or may not be important to you as a seller. You have to ask yourself ‘is your product(s) good for the French market? Have you identified target audiences in France? Have you done any product testing in various areas in France? Have you invested in French localised translations and product packaging?’ There is a lot to look at when venturing to regional markets and unless you can achieve remarkable sales in those markets, it might not be worth your time.
OnBuy.com – UK Selling
So we will look at an up and coming e-commerce marketplace in the UK branded OnBuy.com.
However, before we dive into OnBuy there are a couple of benefits you may want to consider. If you are already selling on Amazon.com, eBay.com and/or Amazon.co.uk, eBay.co.uk chances are you have already done product testing in these English speaking regions. If you have not, do know English spellings on occasion are different, so don’t assume if you are selling in the US, selling in the UK is merely copying one platform’s content to the other.
According to OnBuy’s website it claims it ‘is officially the largest UK owned marketplace and has ambitions to achieve £400m in annual sales by 2021!’ That is just 5% of Amazon’s UK market share.
OnBuy states it is ‘working closely with PayPal to launch in over 100 countries in the next 12 months!’ Amazon currently has 16 sites dedicated to 16 countries. OnBuy also states, ‘unlike eBay and over-saturated Amazon – where you’ll notice a minefield of unvetted third party sellers with knockoffs and dodgy goods galore – OnBuy works closely with big brands and smaller sellers alike to bring you the best products at the best price.’
One area of interest is that OnBuy claims Amazon’s seller fees are a ‘staggering 15%’ and theirs are ‘only 5-9%.’
Where does this lead us?
While bigger is not always better, we can’t ignore the fact that OnBuy currently owns less than 5% of Amazon’s UK market share. In essence, if you just sell via OnBuy you lose a potentially large market share of buyers.
Although you may save between 6-10% in seller fees, your sales volume would most likely be significantly less via OnBuy.
Although Amazon targets 16 countries and OnBuy looks to target 100 in the next 12 months, one must ask, ‘why would a multi-billion dollar company only target 16 countries’? Although we at E-commerce Direct don’t have that answer just yet, we would reckon that Amazon has invested millions of dollars and hours into the best markets for its sellers. Again more is not always better.
In conclusion, there will always be pros and cons for either platform. A lot comes down to you the seller, do you have time to work with multiple selling platforms? That means dual; fulfilment, pricing schedules, sales, inventories … there is a lot to consider.
If you have time and your product(s) is right, you should look over OnBuy … You never know, you could be selling your products in 100 countries in less than 12 months!
For studies on how well your product(s) might sell in foreign markets, or for help in setting up your OnBuy or Amazon accounts, get in touch with our European E-commerce Specialists on +44 (0) 2381 920 246, if you are based in the US, call toll free ++1 (888) 567 0464 or email support@E-commerceDirect.com or via live chat on our website at www.E-commerceDirect.com