Why is small seller not favoured in large e-commerce platform

Large e-commerce platforms like Amazon, eBay, and Etsy are designed to provide a wide range of products and services to consumers. However, small sellers often find it difficult to succeed on these platforms because they are not favored by the platform’s algorithms and policies.

One of the main reasons small sellers are not favored is due to the intense competition. Large e-commerce platforms are home to millions of sellers, and it can be difficult for small businesses to stand out and attract customers. Additionally, the algorithms and search results on these platforms are often designed to favor larger and more popular sellers, making it harder for small sellers to be found by customers.

Another reason is the high fees charged by the platform. As a small seller, you will be subject to various fees, such as listing fees, referral fees, and fulfillment fees. These fees can add up quickly and eat into your profits. Additionally, the platform also takes a percentage of the sales price, which can further reduce your earnings.

Small sellers also have limited control over their brand and customer experience. Large e-commerce platforms control the customer experience, and small sellers have to abide by their rules and regulations. This means that small sellers don’t have full control over their product listings, images, and customer interactions, making it harder to create a unique and memorable experience for customers.

Another reason small sellers are not favored is the lack of customer data. Large e-commerce platforms do not provide detailed customer information to small sellers, making it difficult for them to build relationships with customers and market to them effectively.

Finally, there is a risk of counterfeit products and scams. Large e-commerce platforms are known for having a high number of counterfeit products, and small sellers can be affected by this. It can be hard to know if a product is authentic or not, and counterfeit products can harm the reputation of small sellers.

In conclusion, large e-commerce platforms are not designed to favor small sellers. The intense competition, high fees, lack of control over the brand and customer experience, lack of customer data, and the risk of counterfeit products can make it difficult for small sellers to succeed on these platforms. Small sellers should weigh the pros and cons before deciding to sell on a large e-commerce platform, and consider other options such as building their own e-commerce website, or using other marketplaces.