Selling on the platforms(Lazada, Shopee, & Qoo10) are almost always a good and foolproof way to getting good traffic and acquire sales for products you are selling. However, as companies grow beyond a certain size, they often tend to forgot what makes them great in the first place. Its kind of like when you are still a small little business and your regulars supported you, then when you grow big, you decide that you have to jack up the pricing of your items so that you can lead a lavish life.
I always like what Kevin O'leary quoted about starting a business. Your customer always comes first, no matter who comes in at next or 3rd. Without customers, you don't have a business. As marketplaces, this takes off a little further, there is often a need to strike a balance between both end consumers and suppliers. As the middleman, Platforms like Qoo10, Lazada have to make sure both ends of the spectrum gets what they want. Their job is to facilitate the settlement of a successful deal.
I've listed my company's items over a year ago on Qoo10. For about over the whole year, Our company have lost more money than we've actually taken out from the platform. Most sales profits go back to the platform in terms of the so called QCash budget which your account manager will require to help push the sales for you. But, just for your info, these promotions can also be done D.I.Y.
The fact is, most consumers on online platforms normally scavange for a good deal online. Its so competitive and brutal for the normal consumer products and this makes the online space the perfect place for advertising companies to absolutely leverage upon. Well, don't be misunderstood, I'm not referring to the legit advertising companies like Google or Facebook whose business is built upon a straightforward advertising model. You'd have thought that by uploading products, filling their empty "shelf space" with products and giving them a cut from the sales, these marketplaces will at least help you gain visibility and to move some sales.
That's where you are absolutely wrong. Viral products or the so called "爆品" in Chinese, are so rare that platforms have to literally depend on earning through the selling of ads. Their so-called pricing support and large platform vouchers are basically discreetly "billed" back to you through your QCash expenses. You want to gain exposure? Visibility? Sure! Pay tribute to their marketing team and wait for them to choose your items. But firstly, make your due payments via QCash first, then you can have your shot at that massive exposure.
This is why i decide to quit the Qoo10 Marketplace. The actual Return on Investments(ROI) just does not justify on the expenses made to upkeep the business on the platform. For those who are still selling there, I wish you all the best. For those who are also having the same sentiments as me, who finally decides that he had enough of platform nonsense and want to set up their own presence online can contact me directly for help.
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