Online marketplaces and auction sites

Online marketplaces and online auction sites are digital selling platforms where a business lists products for customers to find and buy. A social media marketplace site lets a seller reach a much wider audience than their own followers, usually in return for paying a fee to the platform. For example, a two-person enterprise making left-handed guitar straps could list them on a marketplace and be found by musicians in other parts of the country who would never see a poster in their local music shop.

Marketplace drawbacks

Marketplaces bring competition from many other sellers, so your product can be hidden among similar items. Platform fees reduce the money kept from each sale. Some potential customers may not use or trust the site, and the site may attract the wrong audience. Keeping prices, photos and stock information up to date takes time. Bad reviews are public and can damage trust, while a technology failure can stop sales completely.

Auction sites and larger platforms

An online auction site lets private individuals and enterprises set up a store and sell by bidding. A fixed-price purchase option lets a buyer pay a set price without bidding, which suits customers who want certainty. Auction sites usually charge a small fee to host a store and another fee for each sale, so sellers must build those costs into their prices. Some enterprises trade exclusively through an auction site, using it as their only place to sell. Small e-tailers can also sell through larger online platforms. This gives a wider audience and the platform's established reputation, but adds fees and competition and gives less control over how the product is presented and sold.