Most people who want to get into the e-commerce business think there are only two ways to go: Marketplace, most often Amazon Seller Central/FBA, or wholesaling, generally through Amazon Vendor Central. But there are drawbacks:
- Marketplace sales are impacted by escalating fees and hidden costs.
- Amazon fees now account for more than 50% of sales proceeds*
- Mandatory advertising and other requirements
- Pressure on pricing
- Wholesaling to Amazon or any of the other e-commerce giants comes at a high price.
- Complete loss of control
- Markup of 50% or more leaves seller with less than half the retail price
- No customer insights
Selling directly to consumers through the Stanford Media Group is a smarter choice.
- Bigger Profits
- Lower Fees
- More Control
- Insightful Customer Data
For anyone who wants to get into e-commerce, selling directly to consumers through the Stanford Media Group is a far better proposition than going through a middleman or wholesaler such as Amazon – or setting up your own website.
Your margins are better, you’re able to collect valuable data about your customers, and, perhaps most important, you have exclusive control over your business, your product, and your advertising and marketing spend — instead of handing them over to a third party with its own agenda.
So why are so many sellers going the third-party route – using Amazon, for example — instead of taking advantage of these e-commerce giants’ huge online presence themselves and selling directly to consumers? Because they don’t know how, or they don’t understand the distinction.
“Most people think there is no other option,” says Mark Gilula, president of the Stanford Media Group, which has been active in direct sales to consumers for more than a quarter of a century. “It takes an enormous investment to set up one’s own e-commerce business, selling directly to consumers — and it is a huge investment.”
Indeed, most people interested in selling direct to consumers believe they need to build their own website. But there are other options.
That’s where the Stanford Media Group comes in.