×

Posted on

Online marketplace vs e-commerce webpage – which one you should turn to?

Tag: payment gateway

Online marketplace vs e-commerce webpage – which one you should turn to?
Mohab Growth Hacks 0

Online marketplace vs e-commerce webpage – which one you should turn to?

With an increasing pressure to maintain a good digital presence, sellers are often faced with a dilemma. Whether to invest in one’s own e-commerce website or list products and services on an online marketplace for a fee? Though both are entirely based online, one must be well aware of the differences, pros and cons of both the options. This way, one can make a well-informed decision, best suited to one’s business model. The following are the features, advantages and disadvantages of each of the two options:

  1. Operating model: An online selling model wins hands down over the traditional brick and mortar shop by way of customer reach and access.
    • E-commerce webpage: An e-commerce website is an independent extension of one’s business i.e. an online store. The portal would host the entire product catalogue with brand details and pricing.
    • Online marketplace: On the other hand, an online marketplace is where one lists one’s products, along with many sellers, for potential customers to browse and buy. The website owner allows third party sellers to sell to customers in return for a fee.
  2. Cost dynamics: An e-commerce site needs to be running 24×7 and requires considerable monetary investment and set up time by way of development, design, selection of domain name, hosting services, integrating a shopping cart, content and can then take payments online. It requires hiring of skilled talent to maintain the site and resolve technical issues. There is minimal cost involved in a marketplace, as one can register, upload and sell the products via the digital platform.
  3. Winning customers: E-commerce requires marketing efforts to build a loyal customer base and ensure sales conversion. However, since it exclusively hosts in-house products, there is potential to earn better margins in case of higher traffic. Further, one can establish direct rapport with customers and send emails on product promotions, discounts or offers. This might result in higher repeat sales. Marketplaces are on the other hand, purely transaction based, and seek to match seller’s products with potential customers. However, since one is competing with several other sellers in the marketplace, one needs to have a good product differentiation or offer discounts to attract customers. In this case, the profit margins might take a hit.
  4. Brand building: E-commerce offers ample opportunities to develop one’s brand and offer customized products to customers. Marketplaces would uniformly promote all listed products and try to enhance website visitors. One might lose sales to competitor sellers. Thus, there are limited opportunities to engage with customers and develop leads. This is because the payment processing and transaction is handled by the online marketplace.
  5. Ease of navigation: An e-commerce website offers products based on separate categories. Hence a customer can easily filter the products or search based on a refined criterion to access the listings. Plus, the product universe would be relatively lesser compared to a marketplace, owing to being restricted to a single seller. In case of a marketplace, the products are organized as sets with multiple sellers. Owing to larger data set, the product selection might be a time-consuming process.
  6. Control aspect: In an e-commerce site, one can control all the aspects of design, content, templates, security aspects, payment mode and integration of payment gateways. There are no limitations on the character limits or guidelines to follow. One can create a unique customer experience and engage better with the customer. There is no flexibility of customization in a marketplace that functions as a one stop shop. Thus, the design, content and templates are as per the choice of the online platform owner. Further, to attract more customers, there may be multiple online payment platforms.

In conclusion, you need to remember that a one size fits all concept never works in business. An online marketplace might help increase sales conversion in case of a relatively new business. On the other hand, in case of a business with an established client base, it would make sense to operate an in-house e-commerce portal. One must take a suitable decision based on the vendors’ business model, nature of products, specific needs, client base and pricing model.

5 years ago
Boost sales conversion with the right payment integration strategy
Mohab Growth Hacks 0

Boost sales conversion with the right payment integration strategyWhile window shoppers are welcome to browse the e-commerce website, merchants are mainly concerned with serious buyers who proceed to the payment gateway after adding the products to the cart. We shall look at the various approaches of how to integrate a payment gateway and the best option to increase sales conversion.

  1. Redirect the customer: The online payment platform is hosted on an external third-party webpage. It is not integrated into the merchant’s own website. Thus, the customer is redirected to a website with a different URL.
    • Disadvantages: The merchant lacks control of the payment process as it is outsourced to an external vendor. The customer might not enjoy services of the same standard as those offered by the merchant. Poor server speed or any other payment processing error that hampers payment would adversely reflect on the brand image of the merchant.
    • For the merchant: The merchant has no control over the operational aspects like error message, back-end process and security levels. Further, there is no way for the merchant to confirm customers’ payments. In many cases, redirection can hurt sales. The customer might abandon the purchase on being directed to a separate website with different design and logo, owing to security concerns. One might even end up losing business to a rival that offers more convenient features in accepting payments.
    • For the customer: The time for the transaction to be completed depends on the speed of the third-party server. Generally, an online customer would prefer a transaction that takes minimum time until final checkout. The customer would like to see a confirmation of the order delivery on the merchant’s website after payment. It might not be possible to return to the e-commerce site after payment.
  2. I-frame based forms: The iframe feature allows one to add an external payment form to one’s website. This works like an appendage to one’s payment page, in return for a code received from the payment solutions company. However, the design is as per the payment provider. This would cause inconsistency with the layout of the webpages of one’s own website. Further, in case the third-party servers are down or operating slowly, the customer might face issues in making payments. One would not be in a position to offer much support and track the error in real time as the payment process is outsourced. Code changes might also have limited options. The delay might result in the customer cancelling the order or abandoning the cart. Payment management is difficult as the merchant lacks control over the process.
  3. Customized forms: The custom form is completely integrated into the merchant’s own website. Thus, the payments process is completely managed onsite. The input fields like the customer details to be entered within the HTML payment page can be entirely customised. The payment processor handles the security aspect of the payment gateway, ensuring it is compliant with the leading PCI certification. This ensures that the customer data is safe and confidential. Since the merchants obtain real-time information, they can offer live chat support to the customer in the event of any difficulty in making payments. With the customization feature, the merchant can design a payment form compatible in look and need with the rest of the website. The last option is a sure-shot way to boost sales conversion. The merchant has complete control of the transaction and there is no risk of any dilution in quality at any stage.

In online transactions, it’s best not to risk losing control of the business transaction to a third party at the crucial stage of payment processing. Hence, it’s best for a merchant to take complete ownership from start to end of each online transaction. This would entail having a seamlessly integrated, customized payments platform within one’s e-commerce site. Often, a crucial decision like payment integration can result in winning or losing customers.

5 years ago
How Offering Alternate Payment Methods Provides a Competitive Edge
Mohab Growth Hacks 0

How Offering Alternate Payment Methods Provides a Competitive Edge

With e-commerce gradually taking centre stage, online shopping is emerging to be a highly competitive space. Every merchant is keen to include differentiating factors based on customer convenience and choice to stand out from competition. One such feature is offering alternate payment methods to the customer. We shall look at how offering alternative payment methods can help one stay ahead of one’s business rivals.

  1. Let the customer choose: Just like with products, customers like to be presented with choice when it comes to payment methods. For a global e-commerce business, it is important to identify the locally preferred, accepted payment methods. This option varies among different geographies, regions, industries, age groups, and devices i.e. smartphone, tablet or laptop used to make the purchase. For example, it is not practical to enter card details in a mobile. In such a case, digital wallets might be popular. In another study, it has been found that millennials prefer text to talk in case of payment methods.
  2. Adapt to local tastes: There are several e-commerce payment options available like direct bank transfers, direct debit, digital wallets, cash on delivery, phone and mobile payments, prepaid cards, money order, online invoices, digital currencies and specific local payment modes. A payment solutions company with a global network would be able to provide valuable insight about the most commonly used payment option. The data analytics would enable higher sales conversion.
  3. Fraud risk evaluation: One can use digital solutions that provide real-time information on the most suitable payment method to be provided to a shopper, after an automated background verification of customer credentials. The shopper’s delivery address, device location and other specific data can be used to assess the risk profile by the time the customer reaches the payment page. This offers dual advantages of providing appropriate payment methods as well as reducing incidents of fraud.
  4. Customer recognition: It is best to provide customized payment options of at least 3 modes. This can be determined based on the past purchase trends like value, frequency and the use of a particular payment mode. This would help provide seamless payment processing based on intuitive data.
  5. Multi-currency support: It is best to opt for online payment platforms that support multiple currencies or provide an accurate currency conversion option. Often, a customer might be travelling internationally and would need to make a purchase from an e-commerce merchant. In such a case, a payment gateway that offers payment acceptance across payment modes in multiple currencies can be a huge advantage.
  6. Secure payment processing: To win the trust of the customer, it is vital to provide secure payment solutions that comply with the highest security standards. Only then would the customer be willing to save confidential details of payment modes like credit card or debit card on the e-commerce website. This saves time during the checkout process as the details will be pre-filled. Some modes like EMV chips can negate any scope for credit card fraud.
  7. Enhance value: One could offer frequent customers the option to pay with reward points or loyalty cards. Co-branded cards that offer rewards like discounts, etc would encourage higher spending with certain merchants. Certain digital wallets also enable the storage of ID cards issued by Government authorities.

Technology is redefining the way we think about payment modes. Gone are the days when one had limited options of cash, cards and net banking. A whole plethora of alternative payment methods are available to cater to the preferences of every wallet, demography, market and business type. A one-size-fits-all approach would prove counterproductive and might result in losing out valuable business to the competition. One needs to find the right payment mix that works best for the unique needs of each business segment and customer profile.

5 years ago
4 Secret Ingredients of a Successful Online Business
Mohab Growth Hacks 0

4 Secret Ingredients of a Successful Online Business

An online business today definitely has a clear edge over the pure brick and mortar models of yesterday. These benefits are evident by its wider customer reach, savings in overhead costs, 24*7 customer availability and efficient inventory management. Now there are certain measures that can help an online business become successful. Experts list out the following ones:

  1. Website: This is given in today’s digital age. A website symbolizes an online, professional presence of the business. Lack of a virtual presence translates into a huge revenue loss. An online platform helps customers connect better with the product brand and make an informed purchase decision. Further, it also reinforces customers’ trust in the brand because as the proverb goes ‘Seeing is believing’. An updated website with detailed information about the product categories, pricing and promotional offers would help achieve higher return sales. The customer would be able to compare with other online portals and zero in on the best deal.Some important components of a website are:
  • Separate pages: A well-categorized website with a landing page or home page, headings like contact us, about us, features and benefits, customer testimonials, etc. would be more appealing
  • Design: Attractive images, logos and tickers would help increase web traffic
  • Security aspects: The webpage should be enabled with highest security frameworks and encryption standards
  1. Knowledge centre or blog: This section has undergone a dramatic transformation in today’s information age. A blog should not be mistaken as trivia. The blog contains educational and informative pointers to help educate the reader about the latest trends in product categories, the unique selling proposition of the product offering, details of product launches, interviews by subject matter experts and any other topic of interest to a potential or existing customer to make an informed choice. Blogs are a very effective way to communicate with the customers and showcase the online business in a positive light. It also contributes towards enhanced website search-ability and piques the interest of readers on search engines. A very powerful tool in this regard is search engine optimization (SEO) which helps push websites with relevant content to the top as per the search request.
  1. Social media: Social media platforms like Facebook, Instagram, YouTube, and Twitter help bring together a community of people with similar interests. It serves as a useful marketing channel. Thus, one can attract potential customers by uploading informative posts, videos, polls and other relevant material to engage readers and attract their attention to the business’s products and services. Besides providing good networking opportunities, this medium can be leveraged for business promotion. Some common details comprise:
  • Company logo, description, navigation to the address via maps
  • Description of products
  • Link to website
  • Hashtags and tags
  • Eye-catching content, images, videos, and gifs
  1. Link to the payment gateway: This is an obvious inclusion as the business is mainly interested in the sales conversion ratio. Integration of a payment gateway process to enhance the buyers’ experience will go a long way in higher sales realisation. A customer can conveniently pay for the products anywhere and anytime. This reduces chances of cart abandonment or rethinking a potential purchase. However, the most critical aspect of this feature is the security aspect. The payment gateway should be a widely accepted, secure mode of payment and should have varied options like credit cards, debit cards, internet banking, and wallets. Further, in case of a failed transaction, debit of money from the customer account without acknowledgement, or network error, there must be provision for immediate customer support. Some customers also prefer to save their card details on secure websites to enable recurring transactions with the same vendor.

A frog in the well approach would not work in today’s highly interconnected, digital age. Business enterprises would do well to adopt the above digital marketing tools to effectively and efficiently grow their online business.

5 years ago
PayTabs’ special pricing offer for start-ups in UAE
Mohab Special Offers 0

PayTabs’ special pricing offer for start-ups in UAE

PayTabs is offering an exclusive pricing model for their payment gateway services to start-ups applying through MAGNiTT (UAE ONLY)

PayTabs’ special pricing offer for start-ups in UAE

Reinforcing its strong focus on the SME and start-up space, PayTabs has tied up with MAGNiTT, the leading community and data platform for startups, investors and enablers in the MENA region. As part of the arrangement, PayTabs is offering customized, discounted pricing for its payment gateway services to start-ups that apply through the MAGNiTT platform. The details of the exclusive offer valid for the UAE market are as below:

  • Transaction fees of 2.50% + 1 AED
  • Set up Cost – Waived off
  • Withdrawal fee – 25 AED

The eligible entrepreneur needs to submit an online application form and would be subsequently contacted by the PayTabs team with further instructions on how to avail the benefit.

PayTabs provides convenient and secure online B2B payment solutions that facilitate business enterprises, especially SMEs and start-ups, to receive payments online through agile technology. With the affordable and easy-to-use PayTabs platform start-ups can pay and receive money online, prepare online invoices, utilize API plugins to integrate one’s website to PayTabs’ payments gateway, and even create an online ecommerce store. This is a huge benefit for start-ups looking to build scale and transact business, locally as well as globally. Start-ups will be able to compete on a level playing field with established players and geographical spread will no longer be a barrier to receiving payments.

PayTabs provides customized products for SMEs, simplifying online card acceptance, and ensuring lower costs and minimal instances of fraud. Services provided comprise a secure payment gateway, fraud prevention systems with convenient electronic payment, and ecommerce platforms suited for social media compatibility. The payment solutions are completely secure, complying with world-class security infrastructure standards, as certified by Visa and MasterCard.

All of these align with MAGNiTT’s start-up focused business model. Start-up founders can use their profiles uploaded on MAGNiTT to directly approach and apply for funding to venture capitalists and angel networks based across the MENA region. MAGNiTT also provides a news board to help connect to start-up talent and enable networking opportunities. The detailed database allows entrepreneurs to study market trends and subscribe to research in related fields, so as to stay abreast of the latest developments. MAGNiTT has a considerable following in the MENA region.

The common aspects linking PayTabs with MAGNiTT are transparency and the start-up focused model. PayTabs, based out the MENA region, is PCI DSS V3.2 Service Provider Certified, which means it provides secure digital payment solutions.

MAGNiTT caters primarily to the entrepreneurial eco-system allowing founders a platform to connect with stakeholders – funders, mentors, coaches, support service providers, and skilled talent across the MENA region.

It is believed that this alignment of goals and a common strong presence in the MENA region shared by PayTabs and MAGNiTT would enable entrepreneurs to derive rich benefits in terms of launching start-ups with convenient payment processing facilities.

Kindly note that this offer is no longer valid

5 years ago