Why start business on marketplaces?

Instead building something from scratch, better to start business on marketplace and integrate in existing ecosystme (WordPress plugins, Shopify apps, …)

Here have these pros and cons.

Pros:

  • No need to guess idea. There are available a lot of reviews, where peoples exactly specify what they want
  • Some marketplaces show detailed statistics on sales, so will be easy to determine profitable niches and avoid low profitable ones
  • Customers have buying habits
  • Possible to look worst bestsellers and improve it

Cons:

  • Marketplace can permanently lock provider at any moment without any chances to return
  • Commisions
  • Some marketplaces requires providing exclusive rights.

However some ecosystems allows to build distributed sales system that can run independently from main marketplace.

For example, WordPress.

  • Traffic can ve initially acquired by distibuting free plugins (even if Google Adwords locks advertisment account, Facebook locks advertisment account, Google excludes site from search – way to reach customers still exists)
  • Customers attracted by free plugins can be converted to email subscribers. Where will be possible to run surveys, clarify needs and make next sales

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