Is the marketplace really worth it?

Marketplaces bring significant benefits to many service providers:

• Wide reach: Through these platforms, both small and large service providers can reach a vast number of potential customers looking for specialized services without leaving their homes.
• Reduced operational costs: Service providers can utilize the ready-made e-commerce infrastructure of the platform, lowering costs associated with promoting and managing their own websites.
• Security and trust: Marketplaces usually offer rating and review mechanisms that build trust among users and help distinguish service providers offering high-quality services.

Despite numerous advantages, marketplace platforms also come with certain risks and limitations:

• Limited control over customer relationships: Customer data is usually stored by the platform, making it difficult to build loyalty and direct relationships.
• Intense competition: A high number of sellers can lead to price wars and the need to constantly fight for visibility on the platform.
• Sales commissions: Fees for using the platform can significantly reduce net margins, especially impacting smaller entities.

Imagine you run a local beauty salon. One of your regular customers, Marek, has been using your services for years.

One day, Marek decides to book his next treatment. However, instead of booking with you, he receives an attractive discount offer from a competing salon also visible on the platform.

Tempted by the promotion, Marek decides to visit the competition.

As a service provider, you suffer losses not only financially but also lose a loyal customer who could have brought you steady income.

This demonstrates how marketplace platforms, while effectively attracting customers, often redirect them to the competition, making it challenging to build lasting relationships and loyalty.

Want to build direct relationships with your customers? Create your free Zencal profile and own your customer relationships without marketplace commissions.