Online marketplaces are rising as effective tools for consumption and business equally. First of all, they can reach a great number of people, becoming an effective tool for getting information to the masses. Sites like amazon, eBay, and Etsy have millions of users, which means that sellers get to deal with a large amount of customers. This is especially helpful for small businesses and one-selling merchants who may have restrictions on their website building. Purchasers, too are entailed to this feature and benefit from an infinitesimal variety of products spanning various categories and prices.

A third benefit of online marketplaces is convenience. These options provide website interfaces that allow buyers and sellers to easily move around and make purchases. Sometimes, buyers can directly view the products, read comments, and compare different sellers' offers. Likewise, sellers can post their goods with very little technological assistance and can pay more attention to stock and promotion needs than if they were to create an online store from scratch.

However, there are serious dis-advantages of using online marketplace as highlighted below. The major drawback for sellers is the costs associated with these platforms Many vendors lose their businesses to these platform operators because of the many charges they impose. Almost all markets require listing fees, as well as taking a cut of each transaction that takes place. Though the size of the population may explain these fees that the platform commands, they limit the specialist’s or seller’s profitability, certainly if he sells low price point products. Expenses of advertising and promoting products through these sites also adds on the expenses.

Another challenge within the online marketplace is the rigidity of competition itself. Uncertainty always occasioned challenges, and in an environment with many competitors, sellers struggle to grab the buyer's attention. However, it becomes challenging for new sellers to make their products pop up without using paid ads or offering big discounts. Therefore, it is not uncommon to find sellers cutting their profit margins, mainly because the market is already saturated with similar products.

To the buyers, a major disadvantage is that they cannot touch and feel products before making a purchase. For this reason, the general idea about the product is usually based on the pictures and descriptions provided on the website of an online shop, which are sometimes misrepresentative. Other concerns include; problems encountered in the shipping which may include delayed or arrival of damaged products. Moreover, having return policies can make it difficult for a buyer if he needs to return the product if selling through different marketplaces.

Conclusion

In conclusion, Online marketplaces present various opportunities and challenges in terms of reach, convenience and ease of use and others as they have been discussed above. Sellers face fees, intense competition and have relatively low control since they depend on rules employed by the platform. On the same note, buyers experience challenges like; Product deception and variation of the returns policy. Finally, buyers and sellers must compare different strategies to find out whether entering or apart from online markets is compatible with their needs and goals.