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Is it too late to enter marketplaces in 2025: opportunities, barriers, and strategic decisions

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E-commerce reached a high level of maturity in 2025. Leading platforms in the Russian Federation — Wildberries, Ozon, Yandex Market — continue to grow their audience, expand their assortment, and implement automation mechanisms for sellers. However, intensifying competition raises one of the main questions for a novice entrepreneur: is it too late to enter marketplaces in the conditions of an overheated market?

The positions of the leaders have solidified, product niches are largely occupied, and advertising costs are rising. On the other hand, the customer base is growing, delivery geographies are expanding, and algorithms are being improved. Therefore, evaluating entry in 2025 requires a strategic approach based on calculations rather than emotions.

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The reality of marketplaces for businesses in 2025

Online sales have become a standard not only for large brands but also for small businesses. Demand is generated within platforms, consumers explore product cards without leaving the interface, and compare offers among thousands of sellers. Marketplaces become a tool where there is no need to build a website, set up logistics, or manually manage payment systems. Everything is concentrated in one window.

However, along with the increase in turnover, the complexity of entry also increases. A newcomer faces high competition, the need to operate within strict regulations, manage assortment under price pressure. Therefore, the question “is it too late to enter marketplaces” requires calculating the breakeven point considering commissions, fulfillment, marketing, and product cost.

Why it’s not too late to enter marketplaces?

Despite the saturation of certain categories, the market scale leaves room for maneuver. Inside popular platforms, hundreds of new requests emerge daily, demand for specialized products, local brands, and flexible offers. Therefore, the answer to the question of whether it’s too late to enter marketplaces in 2025 depends not on time but on approach!

Competition has increased, but so has the audience. If in 2020 mass demand products dominated the platforms, today the winner is the one who analyzes the niche, optimizes the product card, works on conversion, invests in traffic, and builds a sales funnel on the platform.

Starting on marketplaces: key actions in 2025

Entering electronic platforms requires preparation. Below is a list of initial steps necessary to launch a project from scratch:

  • analyze demand and choose a product niche with minimal competition;
  • calculate profitability considering all costs;
  • register and verify as a seller;
  • create a product matrix and package initial batches;
  • develop a unique selling proposition for product cards;
  • optimize titles and descriptions using keywords;
  • shoot and process visual content;
  • integrate logistics and choose a fulfillment strategy;
  • launch an advertising campaign on the platform;
  • plan the accounting and analytics system.

This step-by-step sequence forms the basis on which sustainable growth is built. Without it, even the best product may not attract traffic and therefore not generate profit.

Is it too late to enter marketplaces: when not to start?

For an objective assessment, it is necessary to consider situations where entry is indeed impractical. Below is a list of factors that indicate when to postpone entry or change the business model:

  • lack of financial cushion for the first three months of operation;
  • unwillingness to regularly invest in promotion;
  • desire to work manually without automation of accounting and analytics;
  • choosing a product without uniqueness or low turnover;
  • focus on price without calculating cost and commission levels;
  • ignoring customer service and reviews;
  • blindly copying others’ product cards without analysis;
  • lack of a strategy for repeat sales;
  • negative attitude towards working with platforms as partners;
  • underestimating analytics as a daily management element.

Such mistakes lead to rapid loss of working capital, poor ratings, and the inability to scale. In other words, the answer to the question of whether it’s too late to enter marketplaces will be affirmative for those who are not ready to change their mindset.

Selling on Wildberries, Ozon, and Yandex Market: what works in 2025?

The largest platforms require different approaches. Selling on Wildberries today revolves around speed, price, and a wide assortment, Ozon focuses on deep analytics, cross-selling, segmentation, while Yandex Market provides maximum support for local brands with an emphasis on SEO promotion.

Each platform changes the rules. New packaging requirements, penalties, conversion recommendations, traffic automation, and KPIs all become operational routines. This is why the question “is it too late to enter marketplaces” is often asked by those who fear change. But in such an environment, the adaptive, not the swift, emerge as winners.

Secrets of growth on marketplaces in high competition conditions

Despite the increasing number of sellers, scaling remains achievable. Strategies to expand beyond a single platform, optimize product cards, reduce returns, and broaden the assortment allow for upward movement. With a systematic approach, rapid growth on marketplaces remains attainable.

Against the backdrop of growing competition and stricter requirements, the main focus shifts towards working on customer loyalty, feedback, and assortment management. Investments in brand development within the platform, customization of packaging, and the implementation of automated sales tools become integral parts of the strategy. In this context, the question of whether it’s too late to enter marketplaces sounds different — it’s now crucial not just to enter the platform but to do it wisely and with a clear understanding of the new rules of the game!

How to start selling on marketplaces as a newcomer in 2025?

A newcomer must understand that entry is not just about clicking “register,” but a stage where one must be not only a seller but also an analyst, logistician, and marketer. Only in this case will launching a business on marketplaces be systematic rather than chaotic.

It is necessary to monitor positions daily, study competitors’ strategies, work on content, and adapt unique selling propositions. The winners are not those who upload a product card first, but those who manage all metrics.

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Conclusion

In practice, it becomes too late for those who are unwilling to change. Marketplaces become a separate business with their own laws, logic, and algorithms. Entry requires investments, patience, and systematic work. However, with the right strategy, any entrepreneur can build a profitable channel.

The final answer to the question of whether it’s too late to enter marketplaces depends on whether the seller is willing to invest in content, analytics, support, logistics speed, and experiments. Only in this case does “too late” turn into “successful”!

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Franchising in retail is an innovative and effective business model that allows companies to expand their operations and open new outlets without having to build everything from scratch. The basis is a contract that grants the right to use the franchisor’s business plan, brand, and proven resources. The franchisee, in turn, receives a finished concept with minimal risk. A franchise not only includes the right to use the brand, but also comprehensive training, marketing support, and clearly defined standards that must be met.

What is Franchising in Retail? Fundamentals and Principles

A franchisor is a party that owns a business idea, a brand, and is willing to provide its resources for its implementation. These can be large companies like McDonald’s or Starbucks that follow their own strategy but allow other entrepreneurs to operate according to their proven model. A franchisee, on the other hand, is someone who purchases a franchise to conduct business according to established rules.

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Often, it is franchising in retail that allows small and medium-sized businesses to enter a highly competitive market, but with less risk. For example, supermarket chains such as OKey and Lenta use the franchise model to expand while maintaining high standards of quality and service.

The Advantages of Retail Franchising for Businesses: From Brand to Startup

Many entrepreneurs note several important advantages. First and foremost is access to an already well-known brand. Starting a new business often entails challenges related to building a good reputation and attracting customers. This problem doesn’t exist with a franchise business because the brand is already well-known in the market, and customers flock to stores or restaurants precisely because of its reputation.

Furthermore, retail franchising offers a pre-built system with operating procedures, standards, and a management system. There’s no need to invent anything because everything has already been developed and tested.

The advantages are also obvious for the franchisor. One of the main advantages of franchising is the ability to expand the network without having to invest in the creation and management of new facilities. The franchisor receives a franchise fee from the franchisee as well as a percentage of sales, ensuring a stable income.

In other words, franchising in retail is a profitable partnership that generates revenue for both parties. Almost all successful global brands develop with this tool.

Disadvantages and Risks of Franchising: When the Model Doesn’t Work

Like any other business model, franchising in retail is not without its disadvantages and risks. For franchisees, the main problem can be a strong dependence on the franchisor’s decisions. All processes, from product offering to marketing, are often regulated by contract. This limits entrepreneurial freedom and prevents the company from quickly adapting to changing consumer preferences.

Furthermore, the high cost of franchising and the royalties paid to the franchisor can reduce the profitability of the business. In some cases, the initial investment can be so high that the process takes years to break even.

The risks are also considerable for the franchisor. If a franchisee fails to meet standards, it can have a negative impact on the reputation of the entire chain. Violations of service or sales quality standards can result in significant losses for a brand, even if it involves just one outlet in the chain.

How to Choose a Retail Franchise: Step by Step

To make the right choice, it’s important to follow some important recommendations:

  1. Market Analysis. Before deciding on a franchise, it’s important to understand what type of business is in demand in the market. It’s important to study the competition, identify the needs of the target audience, and understand how competitive the chosen brand is in the chosen region.
  2. Study the Franchise Terms and Conditions. It’s important to carefully read the franchise terms and conditions. These include the initial investment amount, royalties, responsibilities, and support provided by the franchisor.
  3. Review the Brand’s Financial Stability. Before becoming a franchisee, you must ensure the brand is financially stable. To do this, it’s important to study reports, market reputation, and reviews from previous partners.
  4. Support Assessment. The franchise must provide a business system, marketing materials, and management support.

Franchising in Russia: Real-World Examples and Prospects

Franchising is becoming increasingly popular in retail in Russia. According to the Russian Retailers Association, more than 2,000 franchises will be operating in the country by 2023. Unlike many Western countries, where the format has been developing for a long time, this process began relatively recently in Russia, and the number of models has increased significantly over the past decade.

Shopping center chains such as Leroy Merlin, Dixie, and Coffee House are actively developing in the Russian market. Each of these chains uses franchising as a way to expand their retail business. Coffee House, for example, has been able to increase its branch count fivefold thanks to franchising, and franchisees receive support at all stages: from opening a coffee shop to marketing and staff training.

The prospects for this format in Russia lie in further growth and expansion, especially in large cities. Franchise businesses are expected to become not only more accessible but also more diverse, expanding into new industries in the coming years.

How to Open a Retail Franchise: A Step-by-Step Plan

Successfully launching a franchise involves several phases:

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  1. Choosing a franchise. Once you’ve chosen the right brand, it’s important to review all the terms and conditions and sign the contract.
  2. Business Registration. After signing the contract, you must register a legal entity, choose an appropriate taxation method, and obtain all necessary permits.
  3. Preparing for Startup. During this phase, you must find suitable facilities, purchase equipment, hire staff, and provide training.
  4. Marketing and Market Launch. Once everything is ready, you need to actively launch a marketing campaign, acquire your first customers, and engage with suppliers.

Retail franchising is a model that combines all the necessary elements for rapid and successful business development. The right choice, careful adherence to the terms and conditions, and competent franchise management will allow you to achieve rapid profitability and stable growth in a highly competitive environment.

Conclusion

Retail franchising will continue to develop and offer entrepreneurs new growth opportunities. Future franchisees can benefit from this trend by adapting successful global models and implementing them in the Russian reality. The most important thing is to be prepared for dynamic changes, learn from the examples of successful companies, and always strive for excellence.

The e-commerce market in 2025 is a space where success is determined by data and strategic calculation. The growth of the audience is accompanied by increasing costs and intensifying competition, making the question of the investment attractiveness of online stores very relevant. Profitability depends not on trends, but on a competent analysis that takes into account the business model, niche selection, customer journey, cost of customer acquisition, and business adaptability. In this article, we will discuss whether investing in online stores is profitable.

Numbers Instead of Emotions: Real Picture of E-commerce

According to ITU data, nearly 5.3 billion users are online. However, the increase in the number of orders does not necessarily translate to revenue growth. Customers have become more demanding: they compare, choose, and calculate.

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In categories like fashion, electronics, and home goods, demand shows a plateau. Nevertheless, niches like zero waste, pet care, and local brands demonstrate growth of up to 17% per year. The question of “what is profitable to sell in an online store” requires analysis not only of audience interests but also of 2025 trends such as ethics, same-day delivery, and customization.

Investments in Online Stores: Model Breakdown

Whether investing in online stores is profitable depends on the business model. The payback period for projects on Shopify with investments up to 500,000 ₽ in 2023 averaged between 12-18 months. However:

  • The average costs to open an online store range from 300,000 to 1.2 million ₽: hosting, CMS, development, logistics, advertising, inventory;
  • The profitability of an online store depends on the category. For consumer electronics, it’s up to 8%, for clothing up to 25%, for handmade products over 30% depending on the unique offering.

Business Plan for an Online Store in 2025

Opening a store without a clear plan is a guaranteed path to losses. A proper business plan for an online store includes:

  • Detailed analysis of the competition;
  • Financial model with a breakeven point;
  • Promotion strategy considering changes in SEO and a 23% increase in CPL in 2024.

Is it profitable to invest in online stores without a business plan? Only if you are prepared to lose capital. Statistics show that 7 out of 10 online stores close within the first two years.

Choosing a Niche: Numbers, Logic, Strategy

A wrong niche choice can halve profitability. How to choose a niche in 2025? Analyze three factors:

  1. Demand: study seasonality, volume, and depth of interest using Google Trends, Yandex Wordstat.
  2. Competition: number of players, brand levels, CPC in the niche.
  3. Profitability: margin, cost per lead, customer lifetime value.

Only at the intersection of this data does growth potential emerge. Whether investing in online stores is profitable depends on the accuracy of niche selection rather than the size of investments.

Online Store vs. Marketplace: Comparison

Marketplace or online store — an eternal choice. The former provides traffic and trust but limits branding and increases commission. The latter requires investments but offers full control. Wildberries and Ozon hold 74% of the total turnover in the Russian retail market. However:

  • Commission can reach 25%;
  • Competition in search results is high;
  • Limited customer interaction.

An online store with a solid SEO structure and personalization retains customers longer. This is why the profitability of investing in online stores is a question of strategy, not just the platform.

Is Investing in Online Stores Profitable: 7 Facts

The profitability of e-commerce in 2025 directly depends on technological advancement and precise strategies. These figures help understand where real profit is being generated today:

  1. Demand for niches with a subscription model has increased by 40%.
  2. Investments in an online store with a unique brand pay off 1.5 times faster.
  3. Opening an online store with investments up to 1 million ₽ is realistic with smart logistics and no-code solutions.
  4. AOV (average order value) in the premium segment is 68% higher.
  5. Integration with AI increases customer LTV by 20%.
  6. Delivery localization is a key growth driver in regions.
  7. Content marketing reduces CPA by 30% with a quality approach.

Each of these factors strengthens the position of an online store in the competitive market. When implemented correctly, they reduce the payback period and increase project sustainability.

Increasing Profit: Specific Mechanics

The profit of an online store in 2025 depends on three factors: process automation, deep analysis of audience behavior, and effective supplier management. Platforms like MoySklad, CRM systems, and analytics systems like Google Looker allow control over every stage of the funnel. Increasing profit by 20–30% is achieved through logistics optimization and assortment personalization.

Point analysis of ad effectiveness and product cards reveals “dead zones” and increases conversion without a budget increase. Monitoring average order value and focusing on repeat sales increase customer LTV — the main lever for sustainable revenue. Suppliers who adhere to SLAs and delivery times minimize returns and claims costs.

Suppliers Worth Working With

In a competitive environment, those who have established seamless logistics come out on top. Wholesale warehouses with API integration, dropshipping schemes with minimal lead times, and local suppliers in the region all contribute to supply chain flexibility. Working with suppliers through platforms like Optlist.ru or Tiu.ru reduces search time and expands the assortment at the start.

To answer the question of whether investing in online stores is profitable, suppliers should be considered as an asset, not a background factor. It is often the stability of supplies that determines a store’s competitiveness in the long run.

Market Contradictions: When Profit Turns into Risk

Online retail in 2025 is not just about trends but also about instability. Changes in legislation, rising logistics costs, currency fluctuations — all affect the profitability of investments. Adaptability is what drives success. Owners who use omnichannel sales, manage assortments through AI, and build personal brands show revenue growth 35% higher than the market average.

Problems have not disappeared — they have transformed. Returns, overspending on advertising, demand unpredictability — these are standard turbulence points. However, a systematic approach reduces risks. For example, testing a niche at the MVP stage can save up to 40% of the launch budget.

Online vs. Offline: Who Survives in 2025

Physical retail continues to lose ground. The profitability of offline points has decreased on average by 12% according to Retail Rocket. Online shows the opposite trend. It is easier to scale, launch promotions, and has lower costs. The market gradually absorbs those who have not adapted.

A marketplace is a viable channel, but it has limitations. With the right strategy, a proprietary online store offers higher profitability. It better retains customers and strengthens the brand. Is it profitable to invest in online stores? Yes — with a strategy, automation, and flexibility in place.

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Is Investing in Online Stores Profitable: Conclusions

In 2025, investing in online stores is not a trendy move but a calculated business decision. With a smart strategy, niche selection, and expense control, e-commerce demonstrates sustainable profitability. Success belongs to those who automate processes, adapt to the market, and build a brand rather than just going online.

Is investing in online stores profitable? Yes, if the approach is systematic and actions are backed by analytics rather than assumptions.