When Ali Osterholz received a call from Better Homes & Gardens asking to feature her brand, she recognized it as a pivotal moment for her business, Explorer Knits + Fibers. With millions of potential new customers poised to discover her products, Ali faced a crucial challenge: her Etsy store lacked the professionalism and unique branding needed to capitalize on the opportunity. "I said, ‘It’s time to put on your big girl pants and get yourself a website,’" she shared, reflecting on her decision to move beyond marketplace limitations.
Ali’s story resonates with many small business owners who often start out on platforms like Etsy due to their low barriers to entry. But as businesses grow, the constraints of these marketplaces can hinder progress, leading entrepreneurs to seek more control over their brand. Research indicates that 52% of U.S. entrepreneurs believe owning their online store offers the greatest brand control, reflecting a common desire for more ownership over their business outcomes.
Shifting from a marketplace seller to an independent online store owner brings changes beyond just operational logistics; it reshapes the entire business identity. For Ali, this meant establishing a unique voice and brand narrative that highlights her commitment to the environment and creativity. With her own website on Shopify, she found the freedom to experiment and connect with customers on a more personal level. "Having my own space gave me full control to experiment with how I wanted my company to be presented to the world," she explained.
Moreover, these independent platforms allow business owners to create more personalized marketing strategies, a capability that 54% of U.S. business owners recognize as a key benefit. Ali took full advantage of this by growing her social media presence and launching a mobile app to deepen customer relationships. Furthermore, she has expanded her offerings with in-person yarn-dyeing classes and pop-up events, emphasizing direct interaction with her community.
As small business owners contemplate moving from marketplaces to dedicated online stores, they may look to examples like World of Books (WOB). Starting from humble beginnings, the founders faced a similar ownership dilemma, leading to a decisive shift toward their own e-commerce website. When marketplace fees began cutting into their profits, they realized that diversifying and transitioning to an independent online platform was not only beneficial but necessary for sustainability.
David Magee, WOB’s director of product, highlighted how that shift has empowered their innovation. "So much of [our engineering team’s] efforts went into just keeping the lights on," he said. Transitioning to Shopify allowed for an increase in innovation velocity, with the company rolling out more features in just a few months than in the previous five years combined. WOB can now offer a membership program, launch a mobile app, and utilize sophisticated tools for customer experience optimization—capabilities that were unfeasible within a marketplace setting.
The decision to migrate to an independent online store also opens up possibilities for targeted customer engagement. With access to analytics tools, brands can track consumer behavior and tailor recommendations more effectively. Magee noted that this ability to understand and respond to customers not only enhances personalization but also strengthens community ties—a crucial factor in today’s marketplace.
However, transitioning to an independent platform isn’t devoid of challenges. Business owners might face the learning curve of website management and the initial cost of setup. The responsibility to drive traffic and sales now falls squarely on the business owner’s shoulders. Many small business owners may feel apprehensive about leaving the familiarity of established marketplaces, where customer audiences are already built-in.
Despite these potential hurdles, the long-term benefits of building a distinct online presence are significant. As Ali Osterholz put it, “In a marketplace, you’re nestled in with all the others. And more or less, we look the same.” By establishing their own brand space, small businesses can distinguish themselves and tell their unique stories more effectively.
The overarching theme remains clear: whether a maker like Ali or an international organization like WOB, the shift toward individualized online stores is a movement growing among small business owners. With tools that are accessible to all—ranging from customizable themes to efficient checkout systems—the landscape now encourages businesses to build their own empires rather than merely residing within someone else’s.
For more insights and to follow Ali’s journey with Explorer Knits + Fibers, visit Shopify.
Image Via Envato: klenova
