We will help you understand the difference between independent websites and e-commerce platforms and their respective advantages and disadvantages, so you can start your adult toy business better.
1. Definition
Independent website
- An independent website refers to an independent e-commerce website built and operated by an enterprise or individual. Such websites are usually purchased by the enterprise on their own by purchasing domain names and servers and are built by developing or using existing website-building tools.
- Its biggest feature is that it is completely controlled by the enterprise itself, and the enterprise can flexibly adjust according to its own needs and market changes, including website design, functional modules, user experience, and marketing strategies, such as Lovehoney, Dame, and LELO.
E-commerce platform & Marketplace
- E-commerce platform refers to those third-party e-commerce platforms that are mature and have a large user base, such as Alibaba, Amazon, eBay, etc.
- Enterprises only need to register accounts and open stores on these platforms to use the platform’s traffic and resources for sales. The platform usually provides a complete set of transaction, payment, and logistics solutions to help enterprises quickly enter the market.
The adult toy industry is relatively special. Its online sales are characterized by:
- Large traffic
- Many promotion restrictions
- Low transaction rate
- High gross profit margin
How to choose a sales channel suitable for your adult sex toy business?
2. Advantages and disadvantages of the two sales channels
Advantages of sex products independent station:
- Free to build your brand and promote your brand.
- Free to display your products and freely price your products.
- Lower transaction costs, no transaction commissions, store opening fees, withdrawal fees, fines, etc.
- With lower market competition, visitors can only see your products.
- Logistics and after-sales service are more flexible.
Disadvantages of sex toys independent station:
- It is difficult to obtain traffic in the early stage, and sales volume is difficult to cover costs.
- SEO is very difficult, and its competitors include pornographic websites, so professional SEO personnel are required to operate.
- Google advertising promotion has many restrictions, and social media traffic also has content restrictions.
- Customers do not trust new websites as much as platforms, and the transaction rate is lower than that of platforms.
Advantages of e-commerce platforms:
- The marketplace itself is a big brand, such as Amazon, which has a huge user base, so the traffic is large and stable.
- The platform has mature operation and data analysis tools, which can be more easily marketed and managed.
- Perfect payment and logistics, and after-sales service system, reducing the difficulty and cost of operation.
- Visitors have a high degree of trust, and the transaction rate is higher than that of new independent stations.
- Strict regulatory policies can improve the level of their products and services.
Disadvantages of e-commerce platforms:
- The marketplace has many rules and updates quickly, which increases the difficulty of operation.
- The platform emphasizes its platform brand and weakens the supplier’s brand.
- The platform is more inclined to consumers in order disputes, and there are often unreasonable returns and refunds.
- The platform’s products are highly homogenized and price competition is very fierce.
- Merchants have high costs, including commissions, fines, storage fees, logistics fees, withdrawal fees, advertising fees, etc.
3. Choose your sales channel according to your conditions
- If you are good at brand planning and promotion, give priority to independent sites.
- If your business plan is long-term, more than 5 years, then you must have a channel for brand promotion, and independent sites have better freedom.
- If you are good at platform operation, have many years of platform sales experience, and have high product selection ability, give priority to platforms.
- If you have SEO personnel or partners, independent sites are also your advantage.
4. Blue rabbit suggestion
How to make your adult sex toy business smoother and maximize profits by taking advantage of the advantages and disadvantages of both?
Blue Rabbit summarizes an optimal solution for reference, from a large number of successful sex toy retailers (our customers) cases.
Our suggestion:
- Establish your adult toy independent website and supply your products to one of the large e-commerce platforms at the same time, such as Amazon or eBay, when you start your adult sex toy business.
- In this way, we can use the platform’s traffic and sales to get through the downturn of independent website traffic and sales. When the independent website traffic and brand are up, then the platform investment can be reduced or stopped. Thereby reducing costs and increasing profit margins.
5. Special tips
The largest market for sex toys is the European and American markets, and consumers in the European and American markets are more inclined to buy branded products on independent sites because they pay more attention to the quality and privacy protection of adult sex toys.
So if conditions permit, it is best to establish your brand of adult toys independent site in the long run. we have a specific post that introduces how to improve your sex toy website.
Conclusion
Adult sex toys are currently a popular retail commodity, with popular products and high sales gross profit margins. However, it is also necessary to choose sales channels based on one’s advantages, budget strength, and investment return cycle.
Only in this way can we survive the most difficult early stage and have sustainable development in the later stage. If you need more market consultation, you can register as a member of Blue Rabbit to obtain more information on the adult sex products industry.