E-Commerce: eBay vs. E-Shop
It may be possible that you are wondering how to fulfill your 'e- Commerce dreams'. Many times, a new internet entrepreneur wonders weather to open an eBay business or to build his own website along with an e-shop on his own domain name. Since it is easier to start sales on eBay, many people tend to do so. However, is it the most suitable solution for you?
Comparison of e-commerce types and the potential profits.
The first thing to remember is that there is no magic in opening an e- shop or in selling on eBay. Sometimes there is this thinking that a shop on eBay gets more exposure than other shops or possibilities. That is just not true. A shop on eBay gets whatever exposure you're directing it, like any other site or e-shop.
Surfers on eBay, which do get to your shop, look for products with the lowest prices as can be. If you're looking to gain high profits from each sale, a "conventional" e-shop is usually the better option. The probability that, surfers who'll get to your shop look for a high standard product and not just a public auction is higher.
Economic comparison.
There are expenses (permanent and varying) to create an e-shop or an eBay store. First, when you use a basic eBay shop, the monthly payment is 15.95$ and furthermore, there is a commission for uploading a sale and another sales commission which fixed by % of the product's price. On the other hand, when you build your own e-shop, (with professional & high standard system), the basic expenses range between 9.99$ for a basic package shop to 27.99$ for the professional package shop (see link at the end of this article). In your e-shop, you are the owner of the shopping cart and you don't need to pay commissions for adding products or percentage of the sale's price (no one to share profits with).
Let us compare a new entrepreneur, who sells 10 products a month, for
12 months. The sale's price for a product is 25$. e-shop eBay shop Total of income from sales 3,000.00$ 3,000.00$ Annual cost for building the shop 215.88$ (advanced package) 191.40$ Sales commission for third party 0.00$ 225.60$ The final sum after expenses 2,784.12$ 2583.00$- Sales commissions in eBay calculated according to average sales commission of 09/12/2006.
- The difference in the commissions grows the more you succeed. Thus, if you sell 100 products a month in a cost of 25$ per product for 12 months. Your income from the total sales will be 30,000$ and the total payment to eBay will be around 2,600$. On the other hand, by using an e-shop the total cost will stay 215.88$...you will earn additional value of 2,384.12$/year
An eBay shop will give you a good ROI (return on investment) but potentially low than the ROI you will get from a private e-shop. Through promoting and SEO optimization on search engines you can achieve good & high traffic from the main search engines. Additionally, you will be able to publish your e-shop by using the Google Adwords System, at costs that you decide.
Nevertheless, if you still wish to reach eBay's customer's community (highly recommended), you can offer the same products on eBay.
I can recommend you of a professional, high standard system which includes variety of important parameters. In addition to that, you will receive a free 30 days trial period where you can build your site, learn all about the system's many options and only than decide whether you're interested or not. Opening a trial site doesn't involve payment or any other commitment. It is highly recommended that you will open a trial site today so you can see for your self how much this system is flexible, professional and high standard.
More advantages the system provides:
- It is possible to open an e-shop that receives payments by using PayPal and by that allows a direct payment of credit cards.
- The basic price includes all expenses: storage, receiving international domain, email, 'adding pages' system, forms, surveys, forums, coupons, shopping cart, technical support and much more.
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Good luck, Yoav Shachak