What are the Disadvantages of Marketplace?

[Suba]

Marketplace is a place or online platform that facilitates the meeting of sellers and buyers, and the marketplace is managed by a third party and is in the form of a public company. We will find many famous marketplaces both locally and globally such as Alibaba, Amazon, Bibli, Bukalapak, eBay, Etsy, Lazada, Rakuten, Shopee etc.

There are many advantages for online business people who use the marketplace as a media/platform for selling their products, such as many visitors/customers, safe and practical, wide and even global reach, more confident buyers etc. But unfortunately, each advantage also has disadvantages that must be learned by all online business people so that profits can be achieved optimally, and minimize risks and obstacles. So in your opinion, what are the disadvantages of the marketplace?

 

[Nomad]

One major disadvantage is they charge a lot, you pay listing fees, success fees as well as payment processing fees

 

[Augusta]

Intense Price Wars:
Marketplaces are often crowded with numerous sellers offering similar or identical products, leading to price competition that can erode profit margins.

 

[monster_masterpiece]

Unavailable for many countries

 

[Starmix]

Marketplace spreads like a wild fire where products are competing in prices and qualities. They're also charging customers to the bones.

 

[monster_masterpiece]

Marketplace spreads like a wild fire where products are competing in prices and qualities. They're also charging customers to the bones.

Like the well known speaking they are splitting funds with you by half

 

[Augusta]

It's harder to foster direct customer relationships and brand loyalty when the marketplace controls communication and customer data.

 

[eLdavis]

Some of the major disadvantages in marketplaces is the high competition, and the limited control over customer experience.

 

[Augusta]

marketplaces may charge significant fees, potentially impacting profit margins, and can sometimes favor buyers over sellers.

 

[Kross]

It is quite difficult to stand out as a brand on a marketplace. That's because the competition is too much.

 

[Tobi]

marketplaces are here to stay, they are consumers best friends allowing us to quickly find what we are looking for with guarantees on our orders being legitimate.

On the other side for sellers it’s not exactly their best friend, in fact in some cases they straight up become your enemy (ex: Amazon Basics launching a competing product that is almost a copy of yours, legally, and taking away your customers)

 

[Nomad]

Another disadvantage is competition. There is so much competition in the marketplace that you cannot get visibility

 

[Augusta]

Marketplaces often standardize the presentation of products and seller information, making it difficult to differentiate and build a unique brand identity.