Advantages And Disadvantages Of Using Online Marketplaces
                     ADVANTAGES AND DISADVANTAGES OF USING ONLINE 
MARKETPLACES
ADVANTAGES
WIDER REACH
 Being popular among young consumers, millions 
of Indians visit these online stores to buy products 
every day. For small retailers and new businesses, 
it is very difficult to reach such a wide range of 
audiences when they have just started out. 
Source: razorpay.com
LESS TECHNICAL HASSLES
 Being global e-commerce giants, Amazon, Flipkart, 
and the likes have sound and effective technical 
teams that manage their digital properties. 
 These marketplaces encounter very few technical 
issues and have the capacity of handling a huge 
amount of traffic at any given point in time. 
Source: razorpay.com
CUSTOMER TRUST 
 Selling on these websites helps small businesses 
manage their customer service, and exchange and 
returns in a timely and efficient manner. 
 This helps build trust with their customers. People 
do not buy from small businesses simply because 
they don’t trust the quality of service they would 
receive.
Source: razorpay.com
EXCELLENT CUSTOMER SERVICE
 After-sales service plays a very important role in 
establishing trust among customers and promoting 
the brand. Amazon and Flipkart provide 24/7 
customer service. 
 Selling your products on these platforms can help 
save the hassle of providing customer service and 
management.
Source: razorpay.com
MANAGEMENT OF SHIPPING AND DELIVERY
 In the case of online business, shipping and 
delivery is a significant part of the process. Selling 
your products on Amazon and Flipkart will help 
save the hassle of managing logistics. These 
websites manage the entire shipping and delivery 
of products. 
Source: razorpay.com
DISADVANTAGES
HIGH COMPETITION
 There will always be multiple sellers that have a 
similar product catalogue. In order to increase 
sales and revenue, different retailers provide 
discount offers and freebies to their customers. 
 This makes it even more difficult for new 
businesses or startups to establish their presence 
in the market. Due to such high competition, small 
businesses are unable to scale up their sales. 
Source: razorpay.com
DELAYS IN PAYMENT
 Offline sales allow immediate receipt of payment. 
In the case of online business, the money is not 
credited to your account immediately. 
 Once the order is placed and the sales are made, it 
takes a few days before the money reaches the 
seller.  The payment is first received by the 
marketplace.
Source: razorpay.com
HIGH COMMISSIONS 
 These marketplaces charge a certain fee from the 
sellers for the services they provide. This could be 
very high in some cases. 
 The payment is transferred to the seller only after 
making the fee deductions from the amount. The 
high commissions make it difficult for small 
businesses to maintain profitability. 
Source: razorpay.com
THANK YOU