Introduction

When the internet was first made accessible to the general public in 1993, there were only 130 websites; however, as the number of internet users increased yearly, numerous businesses and individuals followed. At this point, 69% of the world’s population has internet access, and everyone can expect this figure will climb further in the next few years.

Given that the internet has ingrained itself into everyday life, whether for personal or business purposes, it will not be surprising that every person on Earth can access the internet by 2069. If online shopping is popular now, it will become more commonplace than going to malls and brick-and-mortar stores to shop in person in the future.

Since a rule of thumb of business is to be where the consumers are, businesses, especially brick-and-mortar stores, should consider embracing digitalisation more and transitioning to e-commerce in Singapore and other countries.

What Is E-Commerce?

The term ‘e-commerce’ is a portmanteau, which means a blend of words. The ‘e’ refers to electronic’, and ‘commerce’ represents a business. When these two words are combined, it is also known as ‘internet commerce’ or ‘online commerce’ because the business transaction happens on the internet.

Handling an e-commerce shop can be equivalent to running a brick-and-mortar store since it becomes a place to buy and sell products. The only differences are customers can now shop for whatever they need wherever they may be at any time and receive their orders at their desired delivery location.

ALSO READ: How Are Businesses Innovating Retail Stores And E-Commerce To Drive Business Growth?

Here is how e-commerce works.

Part I: The Importance Of E-Commerce

The e-commerce industry showcases promising growth that drives businesses to expand their operations online. In addition to a brick-and-mortar store, having an e-commerce website or enlisting products on an online marketplace helps them generate sales as their customer base increases.

More and more businesses asw the importance of e-commerce with COVID-19’s global impact over the last few years. Even though the growth of e-commerce has been a bumpy ride, especially for businesses that are new to e-commerce, they managed to pull it off.

The Rise Of Global E-Commerce

Despite the easing of community measures, many consumers still prefer to shop for their needs and wants online. This shift in consumer behaviour continues, so businesses should embrace digitalisation more than ever since online shopping will become more prevalent in the coming years.

The data from this infographic came from eMarketer | Insider Intelligence

Retail E-Commerce Sales By Country In 2022

While it is true that almost everyone loves to shop, whether in person or online, Asia, particularly Southeast Asia countries, has the fastest-growing e-commerce market. Singapore, followed by Indonesia and the Philippines, leads the way in retail e-commerce sales.

Here are the other seven nations that experienced an increase in retail e-commerce sales in 2022.

Retrieved this image from eMarketer | Insider Intelligence

Part II: Having Your Own E-Commerce Website vs Listing Your Products On An Online Marketplace

Even though businesses nowadays can attract more customers across the globe, being able to sell and earn more profit is easier said than done. Since consumers prefer to shop somewhere safe and convenient, online business owners should choose their platform wisely.

When running an online business, setting up your e-commerce website and listing your products on an online marketplace are the first two steps. Knowing their differences, including their advantages and disadvantages will be helpful for you.

Let us first understand the definition of an e-commerce website.

What Is An E-Commerce Website?

An e-commerce website is the online equivalent of a brick-and-mortar store. It is owned by a single business that sells and promotes the products they made or brought from different manufacturers and will be sold under their name.

Online business owners of e-commerce websites can stand alone because they are not dependent on online marketplaces’ existing customer base. To have a platform where they can sell their products, they either use a website-building platform or engage an e-commerce website development agency to help them build e-commerce websites of their own.

DISCOVER: Top 28 E-Commerce Website Development Companies In Singapore

The following are top e-commerce website-building platforms that online business owners and aspiring ones prefer to use:

Top 4 E-Commerce Website-Building Platforms

1. WordPress

WordPress, founded in 2003, is the most popular e-commerce website building platform since it is free and easy to use. Many well-known entities, such as Forbes, CNN, and Sony use WordPress because it offers a powerful content management system that can help them create, edit and publish content effortlessly.

DISCOVER: 15 Useful WordPress Plugins For E-commerce Website

2. Shopify

Established in 2006, Shopify is one of the leading e-commerce website development platforms worldwide, with more than 3.84 million active websites, according to BuiltWith.

Since Shopify offers a wide range of features such as social media integrations, reporting, analytics, and e-commerce SEO, it is not surprising many online business owners use it to manage their e-commerce operations.

ALSO READ: A Guide To Using Shopify In Singapore

3. Squarespace

Although Squarespace does not have a free plan that allows anyone to build an e-commerce website, it is still a popular e-commerce website-building platform. Given that Squarespace offers aesthetically pleasing e-commerce web design at affordable prices, many small businesses use it to impress their target audience.

DISCOVER: 14 Essential Features For Your Ecommerce Website

Here is Squarespace’s website creation price information.

4. Wix

Wix is another platform for creating free e-commerce websites that is popular among companies. 3.4% of online websites that are currently active were created using Wix, according to W3Techs.

Even though Wix was founded three years after WordPress, it does not fall behind in e-commerce website development because it provides all-inclusive website solutions. Wix offers free web hosting, eye-catching e-commerce website design templates, and potent e-commerce SEO tools.

Now you have a good grasp of what an e-commerce website is and the e-commerce website building platforms that businesses use, let us move on and learn about online marketplaces.

What Is An Online Marketplace?

An online marketplace is an online space that allows various businesses to come onboard to sell on their platform.

Besides selling products, online marketplaces are also responsible for processing the transactions between customers and merchants. The merchants on online marketplaces range from retailers to wholesalers. They have to enlist the products they sell on their chosen online marketplace.

The top online marketplaces that existing and aspiring online business owners can use are listed below:

Top 4 Online Marketplaces

1. Lazada

Lazada, founded in 2012, is one of the leading online marketplaces in South-East Asia. Many of its frequent buyers come to this online marketplace because it has a wide range of product selections, from clothing to skincare.

The Cash On Delivery option is another reason why Lazada became so popular since it allows customers to place an order and pay their bill upon delivery. Lazada also has more than 39 million monthly visitors in the Philippines alone. If you include other countries, that only means you can quickly connect with millions of potential customers by using Lazada as your preferred online marketplace to sell your products.

2. Shopee

Shopee was originally introduced in Singapore in February 2015 and is an online marketplace owned by a multinational technology business from Singapore. It has expanded its reach to various countries, such as Malaysia, Taiwan, Thailand, Indonesia, Columbia, Brazil, Vietnam, Mexico, and the Philippines.

Besides being accessible to different countries, Shopee has established itself as a top online marketplace by prioritising its mobile-centric, app-based platform. The said online marketplace also runs fun and engaging campaigns to promote the goods that its online merchants sell.

Shopee also has 343 million monthly visits worldwide, which makes it an ideal place for new online merchants to establish themselves as they draw customers and earn profits. You should know that Shopee considers e-commerce SEO before it displays products on its homepage.

3. Amazon

Amazon is the most established and oldest online marketplace currently operating in the world. Jeff Bezos founded Amazon in 1994, and his online marketplace started as an online bookseller. Years later, Amazon decided to sell more than books while expanding its reach to 45 countries. In 2017, Singapore became the first nation in Southeast Asia to be able to access this online marketplace, as Amazon further extended its global online footprint.

4. Alibaba

Even though Alibaba started five years later than Amazon, this online marketplace has become one of the most popular online shopping destinations due to its much more affordable prices. Online retailers can buy and bargain a wholesale price with Alibaba’s partnered manufacturers when they place bulk orders.

A Side-By-Side Comparison Between An E-Commerce Website And An Online Marketplace

Online shopping is becoming more prevalent in the coming years. Businesses should take advantage of that fact by setting up an online store, whether by having e-commerce or listing their products on an online marketplace. Being accessible online allows them to draw more customers and earn profits in addition to their physical locations.

View the illustration below so you can better grasp the difference between selling on an e-commerce website and an online marketplace

Part III: How Do You Choose The Right Platform For Your Business?

With millions of companies doing business online, choosing the right platform is essential as that will be the storefront where your potential customers check out your products and make a purchase.

You should already be aware that establishing an e-commerce website or putting things on an online marketplace can help you attract customers and convert them into sales, so there is no right or wrong answer.

To help you narrow down your options and make an informed decision, you have to choose what is best for your online business’ goals. Consider the following factors to help you choose the right platform where you should sell your products online.

1. Your Target Audience

Determining your target audience is the first factor to consider when choosing the platform where you should sell your products online.

While it is true that customers can access both e-commerce websites and online marketplaces, some prefer buying from a particular platform more than others. Where you should sell your products will highly depend on where the majority of your target audience shops.

2. Your Competitors

You may or may not agree, but your competitors are one of the pillars of your business’s growth. Without your existing competition with them, you will most likely not seek improvements to meet your customers’ growing demand.

By acknowledging the existence of your competitors, you are also helping your business grow. After all, you will try your best to be where they are so you will have more chances of catching their potential customers and turning them into paying loyal customers.

Now try and do your research to find out if your competitors have an e-commerce website or have a product listing on online marketplaces. Remember that monitoring your competitors’ activity allows you not to fall behind, from SEO campaigns to the latest trends.

DISCOVER: 2023 Online Shopping Trends In Singapore That You Must Know

3. Your Branding

Another thing you need to consider when choosing the platform where you should do your business is your branding. You should know that selling products on your e-commerce website should not pose any problem if you have established your brand.

However, it could be challenging for startups that do not yet have a solid consumer base to start selling alone on an e-commerce website. Selling on an e-commerce marketplace first can be advantageous in this situation. Once your brand and customer base has grown, you can now be independent by setting up an e-commerce website.

4. Your Budget

Similar to running a brick-and-mortar store, your budget is also one of the factors you need to consider when choosing the platform where you should sell your products online.

As mentioned above, there are costs involved whether you choose to sell on an e-commerce website or list your products on an online marketplace. The only difference is how many fees you have to pay monthly or annually.

When you sell on an online marketplace, they may have to charge a certain percentage for every transaction you make. If you sell your products on your e-commerce website, you will have to settle the payment for e-commerce website development and maintenance and web hosting.

Nevertheless, the expenditures will differ depending on the online marketplace and e-commerce website building platform.

5. Your Business Goals

Business goals are an important factor if you want to expand your business online. If you plan to sell your products to different countries, an online marketplace is a great place to start.

If you want to have complete control over your business, you should have an e-commerce website. This option also allows you to reach out to more potential customers across the globe but it might take a while since you have to establish your branding locally first before going global.

Part IV: Frequently Asked Questions About Developing An E-Commerce Website, Answered

Since most purchase journeys nowadays begin with consumers searching the search engines like Google, business owners and aspiring ones have realised that being accessible online is key to success. However, it is easier said than done since the internet has a vast place with tons of websites. For an e-commerce website to stand out, business owners should exert more time and effort in e-commerce website development.

Fortunately, small and medium-sized enterprises (SMEs) can now take advantage of the Productivity Solutions Grant for e-commerce development and claim up to 70% of funding support when they have applied and engaged with a pre-approved PSG grant vendor. SMEs that fall under the food service and retail industries are eligible for 80% support until March 31, 2023.

LEARN MORE: PSG Grant – All You Need To Know About Productivity Solutions Grant (PSG)

SMEs may know how to enlist their products on online marketplaces, but they might have more in-depth questions about developing an e-commerce website, whether by using a website-building platform or engaging with an e-commerce website development agency.

Here are the frequently asked questions about e-commerce website development.

What Is The Cost Of Developing An E-Commerce Website?

When developing an e-commerce website, two options come to mind: to use an e-commerce website building platform or hire a website developer. Both options have advantages and disadvantages. In addition, there are numerous SEO aspects to take into account that will impact your budget.

ALSO READ: Website Design Singapore – Web Design Pricing: Expectations Vs Reality

How Long Does It Take To Develop An E-Commerce Website?

It depends on the type of e-commerce website you plan to have and the number of product web pages. On average, developing an e-commerce website when you engage with an e-commerce website development agency may take two to three months.

The turnaround time can be shorter if you use an e-commerce website building platform, but there is no guarantee that it will be as good as the output that professional website developers can make.

What Are The Essential Pages Of An E-Commerce Website?

1) Homepage; 2) Contact Page; 3) Product Or Service Page; 4) About Us Page; 5) Blog Page; 6) 404 Error; 7) Thank You Page; 8) Privacy Policy; 9) Shipping / Return Policy, and 10) Site Map is the essential web pages that an e-commerce website SEO-friendly should have. Having these allows you to maximise your online presence and reach more potential customers.

How Do I Promote My E-Commerce Website?

Besides creating business profiles on social media platforms like Facebook and Instagram, you should also consider creating a Google Business Profile. Since most online experience begins on Google, having a GBP account allows you to become more visible, especially for local searches.

ALSO READ: 7 Benefits Of Using Google Business Profile

Should I Outsource Or Manage My E-Commerce Website In-House?

Outsourcing is a better option since you will be relying on experts with extensive knowledge, experience, and expertise to help you manage your e-commerce website. Find an e-commerce website development agency that can assist you in developing an aesthetically pleasing and functional e-commerce website! If you have the time and budget, you can build and manage your e-commerce website yourself, but the quality may not be the same as the work of professionals.

Conclusion: Which Is Better? E-Commerce Website Or Online Marketplace?

Both an e-commerce website and an online marketplace have particular benefits that might help with business growth. The former is the best option for you if you want complete control of your business, including your e-commerce SEO and web design strategies. You may opt for the latter if you desire to sell your products immediately.

You should know, however, that choosing between the two is not the only option you have. As more people shop online, having an e-commerce website and listing your products on online marketplaces allows you to get the best of both worlds. Consider integrating your online stores on online marketplaces into your e-commerce website to attract more customers and help them learn more about what you have to offer.

Given that it is difficult to set up an e-commerce website for your small business, you may require professional help from an e-commerce SEO agency. Contact OOm at +65 6391 0930 or leave a message on their website if you want to outsource your e-commerce website development and SEO needs.

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Daniel Donna

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