Pros and Cons of Selling in Marketplaces

pros and cons of selling in marketplaces

All brands and retailers should take into consideration whether selling in marketplaces could provide a business and economic advantage to them. This is why we’ve gathered some pros and cons for you in order to help you evaluate if these channels are appropriate for your business.

Pros of Selling In Marketplaces

Pros of selling in marketplaces

    • Attracting a broader audience. Marketplaces are increasingly popular platforms, as they provide a much wider assortment than any brand store could offer. During the past few years, Amazon has surpassed Google in terms of product searches. Nowadays, 90% of Amazon’s product views come from their own product search, and not from the Google search engine.
    • Enjoying their payment and billing processes. Marketplaces take care of everything for you, from the backend and the billing process to the web technical maintenance.
    • Taking advantage of their marketing budgets. They raise awareness and attract traffic to their site thanks to big investments in advertisingand you can simply reap the results.
    • Using their out-of-the-box landing pages, templates, and storefront. Marketplaces provide you all this, which makes it attractive to small brands that do not even own an eCommerce site of their own, as it spares the web development efforts.
    • Testing the performance of your products in new markets without having to fully localize your site. You can make your products available in new locations around the world and try whether your regional sales work before you even decide to translate and localize your own website. 

Cons of Selling In Marketplaces

    • Abiding their strict product information rules. Procedures, rules, and guidelines established by marketplaces can make processes much longer. Each marketplace has its own format for product listings and requires its own data-entry process. We’ll see how to tackle this later.
    • Ignoring who your customers are. Marketplaces bring you revenue, but it’s them who own the customers. Therefore, brands face an inability to really know who their final customers are and target them again.
    • Paying reselling fees for every product sold. Since marketplaces are the ones selling your products – not you-, you’ll need to pay a fee for every product sold, which will reduce your margins. That leads us to the next point. 
    • Verifying and monitoring the ROI according to the economic and manual effort it requires to create the shop within the marketplace and pay a portion of the revenue to the marketplace. The revenue needs to compensate for the time and money invested.
    • Facing competition on the same site. People can find the same kind of products from other brands different than yours without leaving the marketplace site. Moreover, marketplaces tend to give preferential treatment to their best-selling partners.

How to Reduce The Costs of Selling Through Third-Party Sites

reducing cost marketplaces

Let’s be honest. Marketplace fees can hardly be avoided. However, there are certain ways you can optimize your processes to be more effective and reduce the time spent on preparing and placing your products in new sales channels. 

The most effective one involves Product Information Management Systems. These solutions help retailers and brands manage all data related to products from a single platform. If you are part of the 83% of employees that end up re-creating data because they can’t find the original document, it’s time for you to forget about spreadsheets that get lost from one department to another. This is the ultimate trick to centralize all data and make sure no update is lost on the way. 

With 30% of all product data including at least one mistake, and customers relying heavily on product content to make their purchase decisions, it is time for retailers to step up and adopt new methodologies to increase accuracy and efficiency.

Moreover, Product Information Systems help push new and updated data to all your sales channels, which means you no longer need to worry about manually updating everything for every single channel. According to the book Product Information Management: Theory and Practice, eCommerce teams spend about 25 min for every single SKU cleaning data. This can be reduced to only 4 minutes when using an automatic system. 

The New-Generation of PIM systems

PIM system


You are probably wondering what could bring even more productivity than that. Well, over the past couple of years, Artificial Intelligence has been taking over every single business area. Product Information couldn’t escape from it either. 

More and more PIM systems are starting to integrate new features powered by AI. From price intelligence to product data creation, new PIM systems like DeepProducts are finding new ways to enhance productivity for retailers and their employees.

In particular, DeepProducts analyses product images in retailers’ catalogs, understanding what’s in the picture and generating relevant product data that can be edited and reviewed within the PIM system later. This can make product data creation around 10x faster.

Below there is a single image demo of how fast the solution generates a product data draft. Of course, this works not on an image-per-image basis, but instead, the solution can connect to eCommerce and ERP and fetch the whole catalog at once, creating a product data draft for all your catalog in a few minutes.


Can you imagine how much efficiency this brings? If you want to see discover the ROI of an AI-Assisted PIM and the benefits it can bring to your business, take a look at these infographics and discover how to cut costs. And if you still have some questions, shoot us a message!