Selling Online as a Small Business

The options for small businesses to sell online, from marketplaces to their own websites and social media, and the costs of each.

Selling online can help a small business reach customers far beyond its local area. But there are several ways to do it, each with different costs and trade-offs.

Marketplaces

Large online marketplaces, such as Amazon, Flipkart and Meesho in India, bring huge numbers of shoppers. A seller lists products, and the marketplace handles payments and often delivery.

Advantages: instant access to customers, trust from the marketplace brand, and logistics support.
Costs: commissions on each sale, fees for storage and delivery, and advertising costs to appear in search results. Sellers compete directly with many others, which can push prices down.
Dependence: the marketplace controls the customer relationship and can change rules or fees.

Your own website

A business can build its own online shop using platforms like Shopify or other website builders.

Advantages: full control of branding, prices and customer data; no marketplace commission.
Costs: website fees, payment processing fees, and the challenge of attracting visitors, often through paid advertising.

Many small businesses sell through social media and messaging apps, such as Instagram and WhatsApp, taking orders directly and accepting payment through UPI. This is low cost and personal, but can be hard to scale.

Open networks

In India, the ONDC network lets small sellers list on apps connected to an open network, potentially reaching buyers without depending on one large platform.

A handmade soap business

A small soap maker sells through a marketplace, reaching customers across the country but paying commissions and fees that take a significant share of each sale. She also runs an Instagram page where loyal customers order directly and pay by UPI, keeping more of each sale. Using both channels balances reach with profitability.

Accessibility

For blind entrepreneurs, accessible seller dashboards and apps matter. Some platforms have improved accessibility, but others remain difficult with screen readers. For all sellers, making product listings accessible, with clear text descriptions, helps reach disabled customers.

Thinking online selling is nearly free

Commissions, fees, advertising, packaging, shipping and returns add up. Calculating the full cost of each channel shows which is actually profitable.

Key takeaways

Marketplaces offer reach and logistics but charge commissions and control the relationship.
Own websites give control but require attracting visitors.
Social commerce is low cost and personal but harder to scale.
Comparing the full cost of each channel shows which is most profitable.