Pros and Cons: Third Party E-Commerce Sites


What is a third-party e-commerce site?

Third-party e-commerce sites are the e-commerce websites that allow sellers to sell their products on their sites for a fee. From displaying their products to collect orders and managing payments, shipping orders to track delivery, these third-party e-commerce sites do it all for a fee. 

Advantages of a third-party e-commerce site that every vendor can benefit from:

 

  • Boost revenue: With the ability to process high volume orders, third-party e-commerce sites allow retailers to sell more of their products. Besides, user-friendly features such as multiple payment options, mobile checkout interface, built-in newsletters and email marketing, gift card and coupon integration, abandoned card protection and more, these sites help in boosting the overall sales of the products of each retailer.

 

  • Time-efficient: Third-party e-commerce sites take care of the trivial task of traditional e-commerce business for a retailer. From managing the website, hosting, accounting and other such time-consuming task are managed by the third-party e-commerce site, allowing the retailer to utilise their time to concentrate on other productive aspects of their business.

 

  • Convenient: With most of the time-consuming task of building an e-commerce business is taken care of by these third-party e-commerce sites, it becomes convenient for start-ups and small businesses to test their new products in the market with minimum risk.

 

  • Exposure to a huge customer base: These third-party e-commerce sites have an already existing huge customer base. Besides, features such as multi-payment options allow different customer base to interact with their products and in turn, increase the rate of sales for the retailer.

 

Disadvantages of using third-party e-commerce sites are:

 

 

  • Limits branding: Since customers of these third-party sites are often looking for a product and are not generally interested in the brand, it makes it challenging for new brands to gain attention and prominence amidst stiff competition in the platform.

 

  • Requires manual inventory management: It becomes challenging for the retailer to keep track of their stock which in turn necessitates them to seek manual support to do the same.

 

  • Necessitates manual support: The customer demands and requirements are subject to regular up-gradation owing to the introduction of new products by other retailers in the market. Often, the retailer finds it difficult to keep up with the same and resort to hiring staff capable of efficiently managing the same.

 

  • Expensive: The fee charged from these third-party e-commerce sites for allowing the retailers to sell their products on the platform differs with each site. Besides, the additional charges of third-party e-commerce sites might make it rise the cost for the retailer.

 

  • Adherence to the prevalent trends of the site: E-commerce business necessitates the retailers to append a product description to all their products to enable their customers to make an informed decision. However, third-party sites enforce the retailers to stick to the kind of description provided on the platform by other retailers for the same or similar product.

 

Hence, are the list of advantages and disadvantages of using a third-party e-commerce site that every retailer can benefit while deciding upon the possibility of using the site to sell their products.

 

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