Marketplaces vs. Online Shops: The Future of Cross-Selling

Cross-selling is a proven strategy to increase revenue per customer. But where does cross-selling work better: on large marketplaces like Amazon and eBay or in an independent online shop? Both models offer opportunities and challenges – and the future of cross-selling might lie in a smart combination of both.

Marketplaces: Reach and Automation

Large marketplaces have millions of customers and offer built-in cross-selling systems that analyze purchasing behavior and suggest relevant products.

Advantages:

• High reach: Access to an existing customer base.
• Automated processes: AI-driven recommendations require no manual effort.
• Trust factor: Customers are more likely to buy from well-known platforms.

Disadvantages:

• Limited control: Sellers have little influence on cross-selling strategies.
• High fees: Commissions reduce profit margins.
• Intense competition: Direct comparison with many other vendors.

Online Shops: Control and Brand Strength

Owning an online shop gives merchants full control over cross-selling and customer experience.

Advantages:

• Custom cross-selling strategies: Personalized recommendations are possible.
• Higher profit margins: No platform fees.
• Customer retention: Direct relationships lead to repeat buyers.

Disadvantages:

• Traffic generation required: No pre-existing customer base.
• Technical effort: Setup and optimization require resources.

The Future of Cross-Selling: The Best of Both Worlds

Rather than choosing one platform, the future of cross-selling lies in strategically leveraging both. Merchants can use marketplaces for customer acquisition while maximizing customer lifetime value through personalized cross-selling in their own shop. Tools like 35up help automate and optimize cross-selling efforts.

Conclusion:

The best cross-selling strategy combines the reach of marketplaces with the control and margin benefits of an independent online shop. Those who strategically use both channels can achieve sustainable revenue growth. Find out how 35up can help you!

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