Written By: Marilyn Mahinay
Selling On Marketplaces In The Philippines
Few Will Admit Their Failure
In my opinion and some may disagree with me, but Marketplaces provide a much better and satisfactory buyer experience versus a poor profit making selling experience. Many of my friends and colleagues believe that no matter how great the buyer experience, If you cannot sell and make a decent income because of forced features, then you are spinning your wheels for nothing.
The overwhelming perception is that marketplaces are a place where you can make a lot of sales and earn a lot of income.
After all, it’s easy and usually free to post products and all you have to do is simply wait for those magical sales to happen. No fuss, no muss! There is always an exception to the rule and some people do earn a very nice income utilizing market places.
But, we would guess that is not the case with many of those sellers. Many of my friends, many of our existing reseller members and perhaps some of your friends have tried Marketplaces like Lazada, and Shopee, or both and did not have the best selling experience either.
The Hidden Trap In Marketplace Selling
Forced Competitor Advertising
If you are really in business to earn an income, Why would you allow other competitors to advertise their items on your “Add To Cart” Page? That feature is designed to give the buyer the best experience. Not to give you the seller the best experience or opportunity to sell, thus resulting in a poor selling experience.
The problem is many sellers offer items that are sold by everyone else as well. There is only one way to sell on a market place with these items and that’s by having the lowest pricing.
But that usually means you are participating in forced price wars and the cheaper you sell your items, the less profit you make and that requires you sell more. It’s pretty much a vicious circle and a race to the bottom and that is hard to break if you want to sell in a market place
Forced Price Wars
Selling Exclusively On Price Is Amateurish
When Mary is selling her dress for P180 pesos, John sees that and drops his price for the same or similar item to P170 pesos.
Then Wilma who is also selling the same or similar dress drops her price to P160 pesos. This is how the “Race To The Bottom” (price war) begins and usually ends with no one making a decent profit.
Or, they simply give up on selling that item. This is the Inconvenient Truth that most sellers and merchants don’t realize until it’s too late.
The More Competitors You have, The Harder It Is To Sell
Just Another Marketplace Feature That Can & Does Reduce Your Sales
When you allow “Similar Products” or “Related Products” that are from your competitors to be shown on your “Add To Cart” page, you are reducing your chances of a sale. Every image displayed that is not yours, is an invitation for your potential buyer to leave before they buy from you.
TWO BASIC RULES
How To Beat The Competition In A Market Place
There are two rules that allow you to rise to the top in a marketplace. Sell unique items that are not common (little competition) and offer it at a lower price than your competitors as long as your profit is reasonable. This usually ensures your success.
It’s The Hype You Have To Be Careful With
“I made a million pesos last year selling on this marketplace, Well No Not Really!”
But, what they did not tell you was that that was Gross Sales. Every time I hear this, it drives me crazy. It’s the hype that sounds good but the real story always seems to be hidden.
I hear it all the time. I made P5000 today. Really? Was that P5000 in sales? Yes, in sales. So you really made P1000 pesos profit in your pocket because your profit margin is 20%. Even resellers will inflate their message to make themselves feel better. Understand the math. I made P1000 today not P5000.
So the million I made last year statement was about sales, not profit but it sure sounded good, doesn’t it? Their profit was likely in the 20% profit margin range or less.
So let’s say they really earned or made P200,000 Pesos Gross Profit for the year. That’s about P17,000 per month average income for the year. And that is a decent income, not bad! Truth be told, 1 million pesos in sales is great. Remember that’s not 1 million products, that just 1 million is gross sales.
They also did not mention the 20% return or refusal rate on their COD’s. They had a 5% return rate based on something wrong with the product… wrong size, color, damage, etc. and a 1.5% charge on all completed gross sales and that’s a P15,000 deduction for the year from your GROSS PROFIT… And that does not include any credit card fees you may incur.
So now you can probably, realistically figure about a P13,000 to P14,000 per month income. Still a nice income from the Internet.
No Marketing Effort
Most Resellers Don’t Know How To Effectively Market
The benefit of marketplaces is you don’t have to do too much to promote your shopping cart or products because everyone is familiar with your marketplace. It’s just a post and pray someone buys.
So if you want to earn 13 to 14 k per month, just post and sell 1 million worth of products. Sit back and you don’t even have to rub your magic genie sales bottle. Sorry for the sarcasm.
Of course selling a million pesos in sales is likely not going to happen if you don’t know what you are doing. And you may have to work at it a little harder than you think. More like full time or more to achieve that 1 million in sales.
A Third Disadvantage
No Loyal or Repeat Buyers You Can Count On Over Time
I’m pretty sure that most people that make the real money online have what they call a list of loyal, repeat buyers that they can cross-sell and up-sell to. Why? Because we all know that a buyer that has had a good experience, likes and trusts you, is easier and cheaper to market to than trying to find new customers. Yes? But you don’t hear anyone talking about how this person only buys from Mary’s page on Shoppe or Lazada. They may be a loyal buyer to Lazada, but rarely loyal to the seller.
Are You In Business To Earn An Income?
Stop The Insanity, It’s Your Business So Take Back Control
There is a very thin line here, but you don’t have to give away your profit for the sake of customer satisfaction and experience. Selling techniques for online selling is actually getting easier not harder.
But it will never be enough to just post and the customer will come and buy.
It’s not rocket science, it’s a simple process. It’s a lot like learning how to ride a motorcycle.
Put your long pants on, closed toed shoes, your helmet and now you’re ready to get on the motorcycle. You insert the ignition key, press the starter button and the engine starts.
You look to the left and right and behind you before you pull the throttle back and with the proper balance away you go. You were taught how to use the foot and hand brake and after a few tries it became a habit. And, you were taught to be cautious and to drive defensively. All for a fun ride experience.
It’s the same for selling online. A little bit of learning, a little bit of training and away you go all the way to the bank. By learning these things you take back control over your sales and your profits.
Understanding The Math
What It Really Takes To Really Put 1 Million Pesos In Your Pocket
I’m not very strong in math but I do know how to add, subtract, divide and multiply. And numbers don’t lie. Math is like the spouse to a business. Math has a tendency to tell you the cold hard truth. When you conduct your business using math, you will likely end up making frequent trips to the bank with a smile on your face and that’s what we all want.
So let’s use a simple equation here.
1 Million Pesos Profit, in your pocket, in a Year is P83,333 Pesos per Month
So now, because you’re selling online, you can sell 24 hours a day, 7 days a week. Yes, even while you are sleeping. When you sell products with a P50 pesos profit margin per item, you need to sell 55 pieces per day. Or, that’s just 18 orders with an average of 3 pieces sold per order.
So now it’s starting to look easier to make that 1 million pesos profit goal. Not so adventurous, Sell just 9 orders per day and earn P40K per month. Would that be reasonable?
Real Money Earning Alternatives
Please, Anything But A Marketplace
The alternative is when you take control of your online business.
That means having a selling platform that allows you to keep all your money earned with no transaction fees. You learn how to sell the same products as others and still make a decent profit.
You can build a repeat buyer base that you can cross-sell and up-sell to over and over again. No more sharing your “Add To Cart” selling page with competitors.
Learn to develop loyal, repeat buyers. Take control of your sales. Learn to build a predictable monthly income that you can truly be proud of.
You can do it all on your own if you want to use Shopify or Wix. If you are experienced and can truly do your own marketing.
No Experience Required – Beginners Welcome
Training and Marketing Materials Provided
But Lynns Fashion Store not only allows you to use your own selling platform like the above or they can provide you a unique shopping cart platform.
The difference is that they give you the tools, training and support you need to find your own customers.
Lynns Fashion Store teaches and guides you how to convert 1st time buyers into repeat buyers and build your repeat buyer base so you can relax in the future instead of burn yourself out with no strategy at all.
What you think and what is in the online sales industry is often two different things. So partner up with a mentor with over 12 years experience and lets chat.
Lynns Fashion Store does have a low membership fee of P1500 pesos for a full year.
(This fee goes directly to Marilyn Mahinay, Owner of Lynns Fashion Store and is not an affiliate link of any kind.)
Step 1. We ask that you register first at https://getyourfreegifthere.com/quick-start-reseller-membership/
Step 2. Then make your payment and in 24 hours or less, you will receive your activated, branded shopping cart.
You will get a unique branded shopping cart with your logo.
Products are pre-loaded for you and they remove all sold out stocks and add new stocks.
It’s a life time membership but the shopping cart itself has a optional yearly renewal fee of P1000 per year
Drop shipping is the norm and delivery anywhere in the Philippines usually takes 2-4 days.
Complete how to get started instructions are provided.
Training Materials Are Provided.
Marketing Materials Are Provided included the infamous Copy Paste Marketing Handbook.
Full Help Desk Customer Support 7 Days A Week
There are no forced price wars because they don’t allow other members to advertise on your “Add To Cart” page.