Advantages and Disadvantages of online marketplaces - Blazingcoders
Advantages of online marketplaces Points are given below:-
- It provides an additional channel to market and sell your products.
- The platform offers reduced marketing costs compared to other sales channels.
- Helps reviews of your products and service may give new customers the confidence to buy.
- They provide greater transparency - availability, prices and stock levels are accessible in an open environment.
Disadvantages of online marketplaces for your business:-
- There are a number of significant benefits to selling on marketplaces however there are potential drawbacks that may need to be considered.
- Marketplaces can charge commission on every sale and fees can vary from site to site. Before selling your products on a marketplace, make sure you understand the marketplace’s pricing structure. See fees for sellinon Amazon, and fees for selling on eBay.
- The online stores may impose restrictive terms and conditions in terms of how you can communicate to customers.
- There may be marketplace limitations as to how your business can brand its online presence.