Ghost Commerce in E-commerce: The Risks and Benefits of Owning Your Own E-commerce
E-commerce has become the backbone for many modern businesses, allowing sellers to reach customers globally at relatively low costs. However, the ghost commerce model of relying on third-party platforms for sales also carries risks that cannot be ignored.

E-commerce has become the backbone for many modern businesses, allowing sellers to reach customers globally at relatively low costs. However, the ghost commerce model of relying on third-party platforms for sales also carries risks that cannot be ignored. In this article, we will discuss in depth about ghost commerce, the possible risks, and the benefits of having your own e-commerce. 

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Disadvantages of Ghost Commerce in E-commerce Strategy and Their Fatal Consequences

Limited Control

In the ghost commerce model, sellers do not have full control over branding, design, and user experience on third-party platforms. These limitations can hinder sellers' ability to customize their online stores according to the brand identity and values ​​they want to highlight. As a result, it is difficult to build a strong and distinct brand identity in a highly competitive market.

Dependency on Platform

Sales that depend on the policies and terms of third-party platforms can be very risky. Platform policies may change at any time, which could be detrimental to sellers. Additionally, reliance on the platform for traffic and visibility means sellers have to compete with thousands of other sellers for customer attention.

Branding is Harder

On third-party platforms, the platform logo and name are usually more dominant than the seller's brand. This makes it difficult for sellers to build brand awareness and emotional connections with customers. Customers may find it easier to remember the platform name than the seller's brand name.

High Competition

Third-party platforms usually have many sellers, which means competition for customer attention is very high. It is difficult for sellers to stand out their products and services among many competitors. This can lead to potential loss of customers who are looking for a particular brand.

Hidden Fees

While the initial costs of ghost commerce may be low, there are hidden costs such as platform commissions, advertising fees, and integration fees that can erode a seller's profits. It is important to account for all costs before starting ghost commerce so as not to be surprised by unexpected expenses.

The Fatal Consequences of Ghost Commerce

Losing Customers

Customers may be more loyal to third-party platforms than to seller brands. This means that if there are changes or problems with the platform, customers may switch to other competitors who offer similar products or services on the same platform. Losing these customers can result in a significant decline in sales and revenue.

Reputational Damage

If a third-party platform experiences problems or has a negative reputation, sellers may also be impacted. Negative reviews on the platform can damage a seller's brand reputation, and it can be difficult to restore a damaged reputation. This can result in loss of customer trust and decreased sales.

Loss of Business Control

Relying too much on third-party platforms can make sellers lose control of their business. Third-party platforms may change their policies or discontinue their services at any time, which could result in sellers losing access to their customer and sales data. This can be disastrous for businesses that depend on data for marketing strategies and customer service.

Difficulty Adapting to Change

Policy or technology changes in third-party platforms can force sellers to adapt quickly. Late adaptation can result in financial and operational losses. Sellers may find it difficult to keep up with the latest trends and innovations, which can make them less competitive in the market.

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Benefits of Using Your Own E-commerce

Full Control

Having your own e-commerce site gives you complete control over all aspects of your online store, including design, branding, user experience, and customer data. Sellers can fully customize their online stores to reflect their brand and values. Full access to customer data also allows sellers to improve personalization, marketing and customer service.

Building a Strong Brand

With your own e-commerce, sellers can build a strong and memorable brand. They can create a brand identity that is unique and different from competitors. This helps in building an emotional connection with customers and increases loyalty.

Increase Customer Confidence

Having your own online store increases customer trust in the brand. Customers feel safer shopping on websites they know and trust, which can increase sales conversions and average order value.

Improve SEO and Visibility

Sellers have full control over their online store's SEO, which can help increase visibility in search engines. By optimizing content, meta tags, and website structure, sellers can rank higher in search results, which brings more organic traffic to the online store.

Flexibility and Scalability

Owned e-commerce provides the flexibility to experiment with new features and strategies. Sellers can easily add new products, new categories, and new features according to business needs. This allows the online store to grow as the business grows.

Lower Long-Term Costs

Although the initial costs of building your own online store may be higher, the long-term costs are generally lower than ghost commerce. Sellers don't have to pay third-party platform commissions or additional advertising costs, which helps save money in the long run.

Better Data Security and Privacy

Sellers have complete control over the security of their online store data. They can choose a trusted hosting provider and implement appropriate security measures to protect customer data privacy and comply with data privacy regulations.

Wider Integration Opportunities

Sellers can integrate their online stores with a variety of other tools and platforms, such as CRM, accounting systems, and email marketing tools. These integrations can help automate tasks, increase efficiency, and gain better insight into the business.

Full Asset Ownership

Sellers have full ownership of their online stores, including all data, content and other digital assets. They can sell or transfer the online store at any time, making it a long-term investment in business assets.

Better Customer Support

Sellers can provide better customer support by taking full control of the customer experience on their online store. They can offer a variety of support options, such as live chat, email, and phone, to build stronger relationships with customers and increase customer satisfaction.

Conclusion

Ghost commerce offers several advantages, such as ease of start-up and low costs. However, it is important to understand its drawbacks and fatal consequences before adopting this business model. Sellers should carefully consider whether ghost commerce is suitable for their business and how to minimize the risks. Meanwhile, having your own e-commerce offers many benefits, including complete control, the ability to build a strong brand, and lower long-term costs. With careful planning and strategy, your own e-commerce can be a profitable and sustainable investment for an online business.

As a successful example of self-owned e-commerce, Lariss e-commerce offers complete solutions for online businesses. With easy-to-use features and customizable design, Lariss helps sellers build unique and professional online stores. Lariss also provides various tools to increase visibility and sales, such as SEO optimization, social media integration, and comprehensive analytical reports.

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Visit Lariss E-commerce to learn more about how you can start and grow your online business with a reliable and affordable e-commerce platform.