We’ve all been there: You shop online, spot the picture that looks exactly like what you are looking for – and the price is surprisingly affordable. Reviews are unclear, and the description checks out, so you add to the cart. And then the package arrives, and you rip off the packaging from excitement. But there it is; the ‘expectation versus reality’ meme comes to life.
This has become so common that the problem has the tagline of receiving the Wish-version of the real McCoy. Consumers try their best to avoid buying cheap and inadvertently useless products. But sometimes, it’s hard to assess through product photos and descriptions that one shop’s listing is more truthful and trustworthy than another in the same busy marketplace. So it’s up to the SME to ensure that their product stands out in the marketplace.
Breaking through the Noise of Market Saturation
“Customers see the same product thirty different times,” Shaheen Price, CEO of Uhuru Marketplace, reminds entrepreneurs. “In those thirty instances, that ONE product needs to stand out. That ONE element is the reason a shopper makes a purchase.”
He explains that the starting process involves more than just listing the item; there are several steps. “The photography is probably the most important. Humans are visual, so a good visual captures attention and gets the buyer interested. It’s like meeting someone; you are first attracted to them by what you see before you want to get to know them. Following good photography, you also need a clear description, accurate information, and competitive pricing.
“You must ensure the customer understands exactly what they’re getting, which can make a huge difference.”
Once this is in place, Price says that the next thing that sellers sometimes underestimate is the importance of trust. “If you consistently deliver what you promise, get good reviews and look after your customers, that becomes a competitive advantage.”
Price notes that store owners also don’t need to be afraid to use data. “If people are looking at your products but aren’t buying them, that’s telling you something. Entrepreneurs should constantly be testing and improving their listings rather than simply putting products online and hoping they sell.”
The Myth Of Multiple Marketplaces
Price points out that he doesn’t believe SMEs need to join multiple marketplaces. “You have to find the marketplace where your customer base is. Spreading yourself all over means spreading yourself thin all over and in marketplaces where your target customer isn’t shopping.
It’s very easy for an entrepreneur to think, ‘The more platforms I’m on, the more I’ll sell.’. But there is a downside to that. “Suddenly you’re managing stock, orders, customer queries, payments and fulfilment across multiple platforms, and for a small business that can become overwhelming very quickly,” Price points out.
“I’d have a look at the platform’s performance and data, who the audience is and what is being sold on the platform. Ask if it applies to you and your business. Does that customer match your product?
“Then look at the fees, the competition, the logistics and the tools the marketplace gives you as a seller. The other thing I’d look at is whether the marketplace is actually helping you grow. Is it giving you access to customers you couldn’t reach yourself? Is it making it easier to sell? Is it providing useful data and tools?”
But Price also warns that entrepreneurs shouldn’t become overly dependent on one platform. “Marketplaces are incredibly useful for acquiring customers, but entrepreneurs should still build their own brand and customer relationships. The marketplace is a tool or platform you can use to manage customers and direct them to secure-based purchases, but you still need to put in the work to build your brand and model so that others see it.”
How Can E-commerce Entrepreneurs Avoid Common Pitfalls
Pitfalls receive their name because it’s so easy to fall into them – and Price believes all entrepreneurs go through a few pitfalls. “It’s one of the lessons to help you grow, but here are ways to reduce the time spent in those pitfalls. One of the biggest mistakes I see is entrepreneurs focusing on revenue instead of profit. You can sell R100 000 worth of products and still not have a healthy business. Once you take away your product costs, marketplace fees, payment fees, shipping, packaging, returns, advertising and everything else, you might find that you’re making very little.
Price says that entrepreneurs need to understand a few things from day one, such as their numbers. “You need to understand inputs and outputs in particular, because this gives you a low profit margin or a high profit margin.
The second thing is not trying to do too much too quickly. “You don’t need 500 products to start an online business. Start with a smaller range, see what customers actually respond to and build from there. This belief – that more product equals better growth and more sales – is what kills businesses in e-commerce. If you couldn’t sell 25 items, what makes you think you’ll sell 500 items?”
Lastly, customer service shouldn’t be overlooked. “Online customers don’t have the benefit of walking into your store and speaking to you face-to-face, so communication becomes incredibly important. If there’s a delay, tell them. If there’s a problem, deal with it quickly.”
Is Social Media Commerce Affecting E-commerce?
Social commerce has been on the rise since 2020, but that doesn’t mean that it is competing against the e-commerce structure of marketplaces.
“They do different things. Especially when you use one side to promote your business and the other to build trust and confidence in the purchasing process. This is where they work well together. Social media is incredibly powerful for capturing attention. You can discover a product on TikTok or Instagram, see someone wearing it, watch a video about it and suddenly want it.
“But when you actually want to buy something, you still need a place to complete that transaction. That’s where marketplaces become very powerful.”
Price says that marketplaces give customers a place where they can search, compare products, look at reviews, make payments and complete a purchase.
“Social media creates the interest, and the marketplace helps convert that interest into a transaction. And marketplaces themselves are changing. They’re becoming much more intelligent, with things like AI-powered search, recommendations, virtual try-ons and tools that help sellers create better listings,” he adds.
Marketplaces Help E-commerce Microbusinesses Scale
According to Price, one underappreciated element of marketplaces is their effectiveness in helping microbusinesses scale. “But simply joining a marketplace doesn’t guarantee success. One of the biggest challenges for a small business moving online is the cost and complexity of setting everything up. You need payments, technology, customer acquisition, logistics and a whole range of other things. A marketplace can remove many of those barriers. It allows a small entrepreneur to essentially say, ‘I have a product, I want to sell it online,’ without having to build an entire e-commerce ecosystem themselves.”
However, Price notes that there is a bigger opportunity here in South Africa. “There are thousands of people already running small businesses through WhatsApp, Instagram, Facebook, physical markets and word of mouth. Marketplaces can give those entrepreneurs a pathway into more structured digital commerce. But the marketplace can’t solve everything for you.
“You still need a good product, good pricing, reliable fulfilment and good customer service. What I like about marketplaces is that they allow entrepreneurs to start small and learn. You can put a few products online, see what people respond to, understand your customers, figure out what works and then reinvest into the business,” he concludes.
