All All Industry Insights Industry News Media Release Member Only Articles NRA Events NRA Legal NRA Partners NRA Projects NRA Training and Development Policy & Advocacy Policy Updates Technology Tenancy & Leasing Testimonials Thought Leaders Weekly CEO Update WHS Update

Are online marketplaces right for you?

September 23, 2016

Indirect selling or third party online marketplaces, such as eBay, can be a great way to broaden your reach, trial new products, and test different regions with lower costs compared to setting up a new storefront.

Groupon, eBay, Etsy and Zazzle are just a few examples of third party websites being used by Australian retailers to maximise the digital space.

Some benefits:

  • Relatively easy to setup and manage
  • Pre-existing traffic on the site
  • Ideal for testing new products, regions and demographics
  • Ideal for clearing sale or discounted items
  • Potential for international exposure
  • Requires less staffing than bricks-n-mortar storefront
  • Technology & specific software tools are widely available
  • Niche retailers that master the ranking system can do especially well

Some risks:

  • Online branded shops require more extensive setup and maintenance
  • Consumers can easily compare prices and deals with competitors
  • You need a robust logistics or drop-shipping process in place
  • Your margin needs to factor in shipping & handling costs
  • Fees are usually percentage of sale value rather than a flat fee, and can be applicable at multiple stages of the sale (eg. eBay, PayPal)
  • Feedback from every single sale is visible and comment moderation is limited
  • Lack of control over the interface and its policies

Ready to try indirect selling but not sure where to begin?

Things to consider when setting up an indirect selling strategy:

  • Does the website or online marketplace have a good reputation?
  • Is there where my customers are already shopping for similar goods?
  • Are my main competitors here too?
  • Is my product something people like to buy online?
  • How labour intensive is the set up process?
  • What fees do they charge?

To learn more about indirect selling visit the NRA Digital Business Kit for Retailers here.

NRA Media

  • National Retail Association strengthens support for members on leasing and tenancy
    June 01, 2021

    We are pleased to have strengthened our partnership with Lpc Cresa, a leading advisor to retail tenants across Australia and New Zealand, to assist our…

    Read More
    September 03, 2018

    To download the nomination form, click here

    Read More
  • Closing Loopholes Bill No. 2 passes Parliament 
    February 20, 2024

    Earlier this month, it was confirmed that both Houses of Parliament passed the second tranche of amendments to the Fair Work Act 2009 (Cth) under…

    Read More
  • Jump start your business for 2021 and step ahead of the competition
    November 20, 2020

    2020 has undoubtedly been one of the most challenging years for all of us. It has created unprecedented trends in every industry, and shown retailers…

    Read More
  • NRA members winners in new partnership with Aussie Broadband
    November 16, 2020

    You must be logged in to view this content.

    Read More

What our clients say

Want to chat?
Contact our team today!