Why sellers shouldn't just sell on marketplaces if they want to go the distance

Selling on e-commerce marketplaces like Shopee, Lazada, and Tiki offers the opportunity to reach customers quickly from the start. However, if you only focus on marketplaces and don't build your own sales channel, you will face many long-term risks: gradually increasing advertising costs, losing control of customer data, difficulty building your own brand, and complete dependence on marketplace policies. For sustainable development, sellers need their own sales website and a customer management system to be more proactive in taking care of and reactivating old customers.

Why many sellers are still completely dependent on marketplaces

When starting an online business, e-commerce marketplaces are a reasonable choice for most sellers. No large capital is needed to build infrastructure, no complex technical knowledge is required, just register an account and start selling. The readily available traffic from the marketplace helps products reach customers immediately, especially during major sales events like 9.9, 11.11, or 12.12.

But it is this convenience that causes many sellers to fall into a comfort trap. When orders come in steadily and revenue increases, they think they don't need to do anything else. The more they sell on the marketplace, the more they believe it's the only and sufficient path for long-term development.

In reality, many sellers have been doing business for 2 to 3 years and still have only one shop on a marketplace, no website, no personal customer list, and not even a way to contact someone who has previously purchased outside the marketplace's messaging system. When asked why, the common answers are: "Customers all buy on the marketplace, no one will visit a website," "Focusing in one place is less tiring," or "I don't know how to build a website yet."

Risks and hidden costs of selling only on marketplaces

Ever-increasing advertising costs

E-commerce marketplaces operate on a highly competitive marketplace model. To get your products in front of customers, you have to pay for advertising, participate in promotional programs organized by the marketplace, or accept deep discounts to compete. The more sellers join, the higher the advertising costs become.

A seller of cosmetics might have to spend 15% to 25% of their revenue on advertising and marketplace commissions. If revenue is 100 million in a month, they might have to spend 20 to 25 million just to get orders. This figure does not include the cost of discounts in flash sales or vouchers that the marketplace requires shops to bear themselves.

Loss of customer data ownership

This is the biggest problem, but few sellers realize it from the beginning. When customers buy on a marketplace, all their information belongs to the marketplace, not to you. You only see the name, phone number, and address in specific orders, but you cannot export a customer list to run retargeting ads, send email marketing, or build a loyalty program.

If a customer has bought from you 5 times in the past year but hasn't returned in the last 2 months, you have no way to proactively contact them to remind them or send them offers. You are completely dependent on them remembering your shop and coming back to search for it.

This means you are losing the opportunity to retain customer data, the most valuable asset in long-term business. Without data, you cannot analyze purchasing behavior, personalize experiences, or build long-term relationships with customers.

Difficulty building a personal brand

When selling on a marketplace, customers often remember the marketplace first, then your shop. Many people buy on Shopee but don't remember the shop name, only that they bought on Shopee. This makes it difficult for you to create a unique brand impression in the minds of customers.

Shop interfaces on marketplaces are also limited by available templates. You cannot customize the user experience in your own way, cannot tell your brand story deeply, and it's difficult to differentiate yourself from thousands of other shops selling the same products.

Dependence on marketplace policies and algorithms

E-commerce marketplaces change their policies frequently. Today your shop is pushed to the top of search results, tomorrow the algorithm changes and you drop in ranking without understanding why. Marketplaces can increase commissions, change refund policies, or prioritize larger shops in promotional programs.

If you violate policies, whether intentionally or unintentionally, your shop can be temporarily or permanently locked. In that case, your entire sales channel will stop, revenue will drop to zero, and you will have no backup channel.

Difficulty in nurturing and reactivating old customers

In business, the cost of retaining an old customer is usually 5 to 10 times lower than finding a new one. But when only selling on marketplaces, you cannot proactively nurture old customers. You don't know who bought once, who bought five times, who hasn't returned for a long time.

Marketplace messaging systems only allow you to reply to customers within the scope of specific orders. If you want to send notifications about new products or promotional programs, you have no way to reach them unless you run paid ads on the marketplace itself.

When should sellers start thinking about their own sales website

You don't necessarily need a website from day one. Marketplaces are still a good place to start, test products, and find product-market fit. But when you see the following signs, it's time to think about building your own sales channel.

First sign: You have had stable revenue on the marketplace for 3 to 6 months. This proves that your product has actual demand, not just a short-term experiment.

Second sign: The rate of customers returning for a second or third purchase starts to increase. If you see a group of loyal customers, this is a good signal to start building a separate channel to better serve them.

Third sign: Advertising costs on the marketplace begin to account for a large proportion of the cost structure. When you have to spend 20% to 30% of your revenue on advertising, profits are eroded, and you need to find an additional channel to optimize costs.

Fourth sign: You want to build your own brand instead of just being an anonymous shop among thousands of others. When you have ambitions for long-term development, not just selling products but also creating brand value, your own website is an indispensable step.

How a personal website helps sellers go the distance

Full ownership of customer data

When customers buy on your website, you own all their information: email, phone number, purchase history, favorite products, frequency of return visits. This is first-party data, the most valuable data in an era of increasingly strict data privacy.

With this data, you can segment customers by various criteria: new customers, loyal customers, customers who haven't returned for a while. From there, you can design suitable nurturing campaigns for each group, increasing repurchase rates and average order value.

Reduced long-term marketing costs

A sales website allows you to do SEO, create useful content to attract customers organically from Google. When your articles or product pages rank well on search engines, you have a free and sustainable traffic source, independent of monthly advertising budgets.

Furthermore, once you have a customer list, you can send email marketing or Zalo messages at a much lower cost than running ads on the marketplace. An email campaign sent to 10,000 old customers might only cost a few hundred thousand VND, but can bring in tens of millions in revenue if the content is engaging.

Building a personal brand

A website is your space entirely. You can customize the interface, tell your brand story, design the user experience in your own way. Customers visiting your website will remember your brand name, not the marketplace's name.

Once your brand has a foothold, you can increase product prices without having to compete on price as you would on a marketplace. Customers are willing to pay more for a brand they trust.

Proactive in business strategy

You are no longer dependent on the policies or algorithms of the marketplace. You decide which promotional programs to run, how much to discount, and how to nurture customers. If the marketplace changes unfavorable policies one day, you still have a backup channel to maintain revenue.

Increased customer return rate

With a CRM system integrated into the website, you can track customer behavior and send automatic notifications when they abandon their cart, when there are new products suitable for their preferences, or when it's their birthday. These small touches help increase engagement and repurchase rates.

A 3-step roadmap for sellers to build their own sales channel outside of marketplaces

Step 1: Create a simple sales website

You don't need a complex website from the start. A basic sales website with features: product display, shopping cart, payment, and contact form is enough to get started.

If your budget is limited, you can use platforms that support quick website building without programming knowledge. GTG CRM is an example, allowing you to create a sales website with pre-designed interfaces, easy customization, and integrated order management system.

Don't procrastinate wanting a perfect website. Start with a simple version, then improve it gradually based on customer feedback.

Step 2: Build landing pages for each campaign

A landing page is a destination page designed to focus on a specific goal: collecting customer information, introducing new products, or promoting promotional campaigns. Unlike an overall website, landing pages for sellers help you clearly test the effectiveness of each marketing campaign.

For example, when running Facebook ads for a new skincare line, instead of directing customers to your website's homepage, direct them to a landing page that talks only about that product. This page has detailed information, attractive images, and a clear call-to-action button like "Order Now" or "Get Offer."

When customers fill out the form on the landing page, whether they buy immediately or not, you have collected data for future nurturing.

Step 3: Use CRM to manage and nurture customers

CRM is a system that helps you store and manage customer information systematically. Once you have a website and start collecting data, the next step is to use CRM to segment customers, track interaction history, and set up automated nurturing processes.

For example, when a new customer signs up for information on a landing page, CRM can automatically send a welcome email with a discount code. When a customer makes their first purchase, the system records it and automatically sends a message after 7 days to ask about their experience. If the customer doesn't return after 30 days, CRM can send a special offer to reactivate them.

The CRM system not only saves you time but also ensures that no customer nurturing opportunity is missed.

Example of a specific sales flow from traffic to lead saving and re-engagement

Let's look at a practical scenario to better understand how websites, landing pages, and CRMs work together.

Phase 1: Attracting traffic

You are still selling on Shopee and have a stable customer base. You decide to run Facebook ads introducing a new skincare product line. These ads do not lead to Shopee but to a landing page on your own website.

Phase 2: Collecting customer information

This landing page has an attractive title, high-quality product images, and a simple form asking customers to enter their name, phone number, and email to receive a 15% discount on their first order. When customers fill out the form, their information is automatically saved in the CRM.

Phase 3: Immediate nurturing

Immediately after customers fill out the form, the system automatically sends an email or Zalo message thanking them with a discount code and a link to the product page on your website. Customers can buy immediately or save it for later.

Phase 4: Tracking and reminders

If customers haven't purchased after 3 days, the CRM automatically sends a gentle reminder message: "You viewed product X but haven't ordered yet. Your discount code is valid until the end of this week."

If customers make a purchase, the CRM records the first order and moves them to the "New Customers" group. After 7 days, the system sends a message to check in and introduce related products.

Phase 5: Reactivating old customers

After 30 days, if customers haven't returned, the system automatically sends a special offer or introduces new products suitable for their purchase history. If they have purchased multiple times, the CRM can send a points accumulation program or loyalty customer offers.

This entire process runs automatically; you only need to set it up once. The result is a sustainable sales system, not entirely dependent on marketplaces, and with proactive customer care capabilities.

GTG CRM helps sellers build their own sales channels

If you are looking for a simple solution to start building your own sales channel outside of marketplaces, GTG CRM can be a suitable choice. This system is designed specifically for online businesses, especially sellers who want to transition from selling on marketplaces to having additional sales channels.

GTG CRM provides the basic features you need:

Sales Website: You can create an SEO-friendly sales website with pre-designed interfaces, easy customization, and no programming knowledge required. The website integrates a system for managing products, orders, and customers.

Landing Pages: Create separate landing pages for each marketing campaign to collect customer information more effectively.

CRM: Store and manage customer information, track interaction history, segment customers by various criteria. The system helps you know who has bought, who hasn't, who needs further nurturing.

Automated Processes: Set up automated customer nurturing processes from when they leave their information on the landing page until they become loyal customers.

GTG CRM is not the only solution, but it is suitable for sellers in the transition phase from selling on marketplaces to building their own channels. The system is simple, easy to use, and reasonably priced for small and medium-sized businesses.

Conclusion

E-commerce marketplaces are a good starting point, but not the final destination if you want to build a sustainable business. When you only sell on marketplaces, you are losing control of customer data, depending on third-party policies, and finding it difficult to build your own brand.

Having your own sales website doesn't mean you have to abandon marketplaces entirely. You can still sell on both channels, but your website will be where you own data, build your brand, and nurture customers in your own way. This is a sustainable sales strategy that helps you reduce risks and achieve long-term growth.

If you have stable revenue on marketplaces, now is the time to start thinking about building sales channels outside of them. Start with a simple website, create landing pages to collect customer information, and use CRM for sellers to manage data effectively. You don't have to do everything at once, but start today to avoid being left behind.

Create a sales website with GTG CRM to be more proactive in your business, retain customer data, and build your own brand.

Frequently Asked Questions

I've only been selling on marketplaces for 3 months, do I need to build a website right away?

Not necessary immediately. Focus on finding suitable products and building stable revenue on marketplaces first. When you have consistent revenue for 3 to 6 months and see customers returning multiple times, that's when you should start thinking about your own website.

Is building a website expensive?

Website building costs vary depending on your requirements. If you use website building platforms like GTG CRM, the cost will be much lower than hiring a separate development team. You can start with a simple website and expand gradually as revenue increases.

I don't know technical skills, how can I manage a website?

Modern platforms like GTG CRM are designed for people without technical knowledge to use. You only need to operate a simple interface to add products, edit content, and manage orders. If you encounter difficulties, the support team will assist you.

Should I abandon marketplaces completely to focus on my website?

No. Marketplaces are still an important source of traffic and revenue. The best strategy is to maintain both channels: sell on marketplaces to reach new customers, and build a website to own data and better nurture old customers.

How can I get people to visit my website when they are used to buying on marketplaces?

You can start by running Facebook or Google ads that lead directly to your website. Additionally, create exclusive offers only available on your website to encourage customers to experience it. Gradually, as you do well in SEO and build your brand, customers will find your website themselves.

Is CRM complicated? Do I need to learn a lot to use it?

Modern CRMs are designed to be simple and intuitive. You don't need to learn much, just understand basic concepts like how to add customers, segment customer groups, and set up automated processes. Most CRM systems have detailed guides and support teams ready to help.