Why Sellers Shouldn't Rely Solely on Marketplaces for Long-Term Success

Selling on e-commerce platforms like Shopee, Lazada, and Tiki offers quick access to customers from the outset. However, focusing solely on these platforms without building your own sales channel exposes you to numerous long-term risks: escalating advertising costs, loss of customer data control, difficulty in establishing a distinct brand, and complete dependence on platform policies. For sustainable growth, sellers need their own sales website and a customer management system to proactively engage and reactivate existing customers.

Why Many Sellers Remain Fully Dependent on Marketplaces

When starting an online business, e-commerce marketplaces are a logical choice for most sellers. They require no significant capital for infrastructure, no complex technical knowledge – just an account registration to start selling. The readily available traffic from these platforms ensures immediate product visibility, especially during major sales events like 9.9, 11.11, or 12.12.

Yet, this very convenience can lead many sellers into a comfort trap. As orders steadily arrive and revenue grows, they may feel no further action is necessary. The more they sell on the marketplace, the more they believe it's the only viable path for long-term development.

In reality, many sellers who have been in business for two to three years still operate solely with a single shop on a marketplace, lacking a website, a proprietary customer list, or even a way to contact past buyers outside the platform's messaging system. When asked why, common responses include: "Customers buy on the marketplace, no one visits a website anyway," "Focusing in one place is less tiring," or "I don't know how to build a website."

Risks and Hidden Costs of Selling Only on Marketplaces

Ever-Increasing Advertising Costs

E-commerce platforms operate as highly competitive marketplaces. To ensure your products are seen by customers, you must pay for advertising, participate in platform-organized promotional events, or accept significant discounts to remain competitive. As more sellers join, advertising costs inevitably rise.

A cosmetics seller might spend 15% to 25% of their revenue on advertising and platform commissions. If monthly revenue is $100 million, $20 to $25 million could be spent just to secure orders. This figure excludes the cost of discounts during flash sales or vouchers that shops are required to absorb themselves.

Loss of Customer Data Ownership

This is the most significant issue, yet one that few sellers recognize early on. When customers purchase through a marketplace, all their information belongs to the platform, not to you. You only see names, phone numbers, and addresses for specific orders, but you cannot export a customer list for remarketing, email marketing campaigns, or building loyalty programs.

If a customer has bought from you five times in the past year but hasn't returned in the last two months, you have no proactive way to contact them with reminders or offers. You are entirely dependent on them remembering your shop and actively searching for it again.

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

Difficulty in Building a Distinct Brand

When selling on a marketplace, customers often remember the platform first, then your shop. Many people shop on Shopee but don't recall the shop's name, only that they bought on Shopee. This makes it hard to create a unique brand impression in the customer's mind.

Shop interfaces on marketplaces are also limited by available templates. You cannot customize the user experience in your own way, tell your brand story in depth, or differentiate yourself from thousands of other shops selling the same products.

Dependence on Platform Policies and Algorithms

E-commerce platforms frequently change their policies. Today your shop might be at the top of search results, but tomorrow the algorithm changes, and you drop in ranking without understanding why. Platforms can increase commissions, alter refund policies, or prioritize larger shops in promotional programs.

If you violate a policy, whether intentionally or unintentionally, your shop could be temporarily or permanently suspended. At that point, your entire sales channel halts, revenue drops to zero, and you have no backup channel.

Challenges in Customer Care and Re-engagement

In business, the cost of retaining an existing customer is typically 5 to 10 times lower than acquiring a new one. However, when selling only on marketplaces, you cannot proactively care for existing customers. You don't know who bought once, who bought five times, or who hasn't returned in a long time.

The platform's messaging system only allows you to reply to customers within the context of a specific order. If you want to send notifications about new products or special offers, you have no way to reach them without paying for advertising on that platform itself.

When Sellers Should Start Considering 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. However, when you observe the following signs, it's time to consider building your own sales channel.

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

Second Sign: The rate of customers returning for a second or third purchase begins to increase. If you see a loyal customer base emerging, this is a good signal to start building a dedicated channel to better serve them.

Third Sign: Advertising costs on the marketplace are starting to represent a significant portion of your 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 rather than being just an anonymous shop among thousands. If you aspire to long-term growth, aiming not just to sell products but to build brand value, a personal website is an essential step.

How a Personal Website Helps Sellers Succeed Long-Term

Full Ownership of Customer Data

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

With this data, you can segment customers by various criteria: new customers, loyal customers, customers who haven't returned in a while. This allows you to design tailored care campaigns for each group, increasing repurchase rates and average order value.

Reduced Long-Term Marketing Costs

A sales website enables you to implement SEO, create valuable content to attract customers organically from Google. When your articles or product pages rank well on search engines, you gain free and sustainable traffic, independent of monthly advertising budgets.

Furthermore, with a customer list, you can conduct email marketing or Zalo messages at a much lower cost than advertising on marketplaces. An email campaign sent to 10,000 past customers might cost only a few hundred thousand Vietnamese dong but generate tens of millions in revenue if the content is compelling.

Building Your Own Brand

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

Once your brand is established, you can increase product prices without resorting to price-based competition like on marketplaces. Customers are willing to pay more for a brand they trust.

Proactive Business Strategy

You are no longer dependent on platform policies or algorithms. You decide which promotions to run, how much to discount, and how to care for your customers. If a marketplace policy changes unfavorably, you still have a backup channel to maintain revenue.

Increased Customer Retention

With a CRM system integrated into your website, you can track customer behavior and send automated notifications when they abandon their carts, when new products matching their preferences become available, or on their birthdays. These small touchpoints enhance engagement and repeat purchase rates.

A 3-Step Roadmap for Sellers to Build a Sales Channel Beyond Marketplaces

Step 1: Create a Simple Sales Website

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

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

Don't delay waiting for the perfect website. Start with a simple version and iterate based on customer feedback.

Step 2: Build Landing Pages for Each Campaign

A landing page is a dedicated page designed with a specific goal: collecting customer information, introducing new products, or promoting a special offer. Unlike a general website, landing pages for sellers help you clearly measure the effectiveness of individual marketing campaigns.

For example, when running a Facebook ad campaign for a new skincare line, instead of directing customers to your website's homepage, guide them to a landing page focused solely on that product. This page should feature detailed information, attractive images, and a clear call-to-action like "Order Now" or "Get Discount."

When customers fill out a form on the landing page, whether they purchase immediately or not, you have captured valuable data for future engagement.

Step 3: Use CRM for Customer Management and Care

CRM is a system that helps you systematically store and manage customer information. 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 care processes.

For instance, when a new customer signs up for information on a landing page, the 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 follow-up message after 7 days to inquire about their experience. If a customer hasn't returned after 30 days, the CRM can send a special offer to re-engage them.

The CRM system not only saves you time but also ensures that no customer engagement opportunities are missed.

Example Sales Flow: From Traffic to Lead Capture and Re-engagement

Let's look at a practical scenario to better understand how a website, landing page, and CRM work together.

Phase 1: Attracting Traffic

You continue to sell on Shopee and have a stable customer base. You decide to run a Facebook ad campaign introducing a new skincare product line. This ad does not lead to Shopee but directs users to a landing page on your own website.

Phase 2: Capturing Customer Information

This landing page features a compelling headline, high-quality product images, and a simple form asking customers to provide 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 Follow-Up

Immediately after a customer submits the form, the system automatically sends an email or Zalo message thanking them, including the discount code and a link to the product page on your website. Customers can purchase immediately or save it for later.

Phase 4: Tracking and Reminders

If the customer hasn't purchased after 3 days, the CRM automatically sends a gentle reminder message: "You viewed Product X but haven't placed an order yet. Your discount code is valid until the end of this week."

If the customer makes a purchase, the CRM records the first order and moves them to the "New Customer" segment. After 7 days, the system sends a follow-up message and suggests related products.

Phase 5: Re-engaging Past Customers

After 30 days, if the customer hasn't returned, the system automatically sends a special offer or suggests new products based on their purchase history. If they have purchased multiple times, the CRM can offer a loyalty points program or exclusive customer discounts.

This entire process runs automatically once set up. The result is a sustainable sales system that is not entirely dependent on marketplaces, with the ability to proactively manage customer relationships.

How GTG CRM Helps Sellers Build Their Own Sales Channel

If you're looking for a simple solution to start building your own sales channel beyond marketplaces, GTG CRM might be a suitable choice. This system is specifically designed for online businesses, especially sellers looking to transition from marketplace-only sales to having their own independent sales channel.

GTG CRM provides the essential features you need:

Sales Website: You can create an SEO-friendly sales website with ready-made templates that are easy to customize, requiring no programming knowledge. The website integrates product, order, and customer management systems.

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

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

Automated Workflows: Set up automated customer care processes from the moment they leave their information on a landing page until they become loyal customers.

GTG CRM is not the only solution, but it is suitable for sellers transitioning from marketplace sales to building their own channels. The system is simple, user-friendly, and affordably priced for small and medium-sized businesses.

Conclusion

E-commerce marketplaces are a great starting point, but not the ultimate destination if you aim to build a sustainable business. By selling solely on marketplaces, you risk losing control of customer data, becoming dependent on third-party policies, and struggling to build your own brand.

Having your own sales website doesn't mean abandoning marketplaces entirely. You can still sell on both channels, but your website will be where you own the data, build your brand, and manage customer relationships on your own terms. This is a sustainable sales strategy that helps you mitigate risks and achieve long-term growth.

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

Create a sales website with GTG CRM to gain more control over 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 a website now?

Not immediately necessary. Focus on finding suitable products and building stable revenue on the marketplace first. Once you have consistent revenue for 3 to 6 months and notice customers returning for multiple purchases, it's time to consider your own website.

Is building a website expensive?

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

I'm not tech-savvy, how do I manage a website?

Modern platforms like GTG CRM are designed for users without technical expertise. You can operate through a simple interface to add products, edit content, and manage orders. If you encounter difficulties, the support team will assist you.

Should I completely abandon marketplaces to focus on my website?

No, you shouldn't. Marketplaces remain a significant source of traffic and revenue. The best strategy is to maintain both channels: sell on marketplaces to reach new customers, while building your website to own data and better serve existing customers.

How do I get people to visit my website when they're 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 customer exploration. Gradually, as you improve SEO and build your brand, customers will find your website naturally.

Is CRM complicated? Do I need extensive training to use it?

Modern CRMs are designed to be simple and intuitive. You don't need extensive training, just a basic understanding of concepts like adding customers, segmenting customer groups, and setting up automated workflows. Most CRM systems provide detailed guides and readily available support.