Samiksha Hiwase | 6 Min Read | December 19 , 2020

Challenges of the Online Marketplace

1. Quick Read

Conventional marketplaces were the standard with the essential goal of reducing expenses and by economies of maintenance. Fulfilling clients’ requirements was the gold standard for these marketplaces. With clients’ demands constantly expanding, challenges continued rising as well.
Today, the image has changed with virtual marketplace arrangements. Taking the benefit of the internet and other emerging technology, business people have made it workable for users to take the experience of frictionless buying/selling online. In some cases, technology doesn’t fix the whole thing. In this sense, beginning and supporting a marketplace business changed into a difficult assignment.
Herein is a list of a few of the challenges faced by start-up online marketeers and the potential means with which to handle them. Since Magento and Magento 2 are the premier online marketplace solutions provider, our Blog focuses on them while enumerating these challenges and solutions

2. Challenge 1:- Searching for an eCommerce solution provider

Selling on Magento should be advantageous, yet selling with no eCommerce solution suppliers is quite tough. You need to look for the best solution suppliers who can boost your online presence. It is practically impossible to deal with all the stores all the while with no help from specialists who can guide you in your dealings with your stores. In the event that we see the business proportion of products sold in the marketplace to products sold through the site, it is 70:30, i.e, 70 percent(majority) of the deals are done through selling on the marketplace.
As a result, most businesses wish to sell on marketplaces with an eCommerce solution as opposed to selling on their own website. The other aspect of the arrangement is to look for a supplier who can support you constantly after the first installment. Hence, you need to look for the best eCommerce solution supplier.


There are various eCommerce solution issuers who can help you in multi-channel selling. You can also contact us at OSC Professionals as solution providers in the marketplace that offer you multichannel integrations to display your merchandise on diverse marketplaces. We help you create solutions for over 50 marketplaces simultaneously to make selling smooth across the globe.

3. Identifying your customers

When you enter a marketplace as a seller, you ought to guarantee a valuable service or product. Equally importantly, you need to identify the target customer segment which values this service or product. Else, your entry will no longer be successful in the long haul. An absence of awareness of the requirements of your target customer group may bring about a fruitless marketplace that won’t keep for a long time.


You need to define a large enough group of target customers. Despite the fact that their requirements may fluctuate, ensure that you thoroughly compile a complete list of all possible problems and offerings. For example, if we take into account the vehicle trading industry, clients who need to buy new vehicles may have specific needs and face unexpected issues in comparison to those who need to go for pre-owned vehicles.

4. Involving both buyers and sellers

When you start your business, you may want to attract as many users as possible. For this reason, you should align with dealers who are prepared to make their products available on your marketplace platform. To build a large client base, the primary requirement is to encourage an interest in the items offered through the merchants.
Additionally, you need a set of clients eager to purchase from these merchants. Thus, both dealers and buyers can connect easily. To get customers, you ought to have a decent number of vendors, and to attract merchants, there should be potential customers who are willing and able to purchase the dealers’ products.


To handle this specific problem, you can begin by focusing on a smaller geographic area and finding the vendors in that area. After you identify the dealers, offer them authentic reasons to enroll on your platform so that they may become interested in selling and trust your online marketplace.
Once you get a hold of one area, a gradual move to different districts is the next logical step. However, this should be done in the wake of getting a steady base of faithful buyers and vendors.

5. MSI is not present:

MSI or Multi-Source Inventory is an application to handle stock inventory in multiple geographic areas. MSI makes it simpler for traders to manage and control their multichannel inventories since the absence of multi-channel inventories makes it hard for the sellers to deal with the store.
While there are integrations suppliers who provide store management through a single distribution center, not all extensions can support MSI.


Selling in the marketplace on Magento with us is an ideal choice as we use the best extensions that are compatible with MSI. In the event that your products are stored in various stockrooms, then that can be effectively dealt with the marketplace extensions solutions which we provide.

6. Handling Multi Warehouses

Dealing with numerous inventories is one of the greatest challenges while selling in the marketplace. It might have been simpler to deal with and fulfill stock manually when you were selling from your single store or site.
When checking and taking care of inventories, you can get depend on offline spreadsheets and reports to succeed and scale. However, this rapidly turns out to be inefficient once you begin adding new sellers and buyers across geographies. Keeping track of the deals and orders getting in from each channel and how those deals and requests affect the stock is not easy to handle in each case.
Besides, it just as hard to attempt to monitor orders, inventories, and connections across all the warehouses, providers, and merchants. You need to take care of the complete marketplace where you are selling on. Henceforth, you need extra smart tools to deal with all the distribution centers together.


Marketplace modules offer compatibility with third-party distribution centers. Merchants can handle various inventories and keep the records of their deals with the assistance of our specialists utilizing our modern marketplace solutions

7. Earning trust from your users

Trust is the principal factor that will determine the success of your online marketplace. In spite of the fact that building connections with your clients can assist you with procuring their trust gradually, a trust deficiency is almost certain in the preliminary stages. This can influence the conversion rate on your platform.


The answer to these issues lies in investigating dealers thoroughly before they are allowed into your marketplace. A review framework should be executed to accomplish a degree of trust with your clients. Verifiable 3rd party reviews and an easy and simple return process will inspire confidence in new clients to attempt purchases on your marketplace platform.

8. Bulk Products Listings

While dealing with numerous stores, listing or adding a bunch of new products can turn into a tedious challenge in case you don’t have any integration to your shop. Manual adding and regular updating of products requires a lot of effort.
Since adding products manually is time-consuming and cumbersome, dealers need to be able to upload products in bulk on the marketplace. This is possible if you have chosen the correct eCommerce solutions provider for your store.


There are multiple modules and integrations which have been created through which dealers can add products in bulk saving effort and time. These extensions also consist of Templating i.e, Category planning. The attributes and classes can be thoroughly planned between the marketplace and the Magento store.

9. Need for Native Solution

While dealing with the marketplace you need a native solution for your platform. This need turns into a challenge for all the vendors. Native solutions assume a significant function as they are the best, safe, and secure.
These solutions likewise offer the best client experience and facilitate the best management service.


If we talk about native solutions, many modules guarantee you that there will be no synthetic experience while selling on the Magento Marketplace, and also guarantee the security of the information generated within the marketplace.

10. Order management

As the reach of the marketplace spreads, it gets harder to handle orders. Here comes the need for an eCommerce solution that can help with order management. Apart from Order Management, Inventory Management, Price Synchronizations, and Returns Management in real-time are also critical for dealers’ proper record-keeping.


Magento provides exclusive marketplace extensions developed with dedicated functionalities to help in handling orders, manage inventory, synchronize prices, and authorize returns on the marketplace. These extension packages also come with an option to keep dealers updated in real-time when new orders are posted or rejected. It likewise synchronizes the stock consequently and keeps the stocks and stock updated.

11. Experiencing drops in conversion rates

When you commence any online marketplace platform, you may have a steady base of clients and purchasers; but the conversion rates may not be so decent. Or, you may experience a sudden inexplicable dip in conversion rates. One of the reasons behind such sudden drops could be that your marketplace platform is no longer attractive to customers This issue can likewise emerge if clients can’t find the necessary data on your marketplace.


To defeat this challenge, it is imperative to concentrate on your UI and UX design in the light of the fact their traffic on your marketplace without conversion is of no use. The design of the online marketplace platform should be responsive and attractive. While usability is a crucial factor to take care of, also make sure that data is easily available to customers. For this reason, you should have a unique design approach and use personalization techniques to make a seamless interface with your customers.
Coordinate sifting alternatives into the design so clients can filter and find the products that they are searching for, without wasting too much time. The administrator board is another part that should be adjustable for both consumers and dealers according to their necessities.

12. Wrapping up

Building an effective online marketplace platform can be a challenge. However, startups in the online marketplace can have smooth sailing if they have exceptional fundamental information and tools. Adopting a client-driven strategy and picturing the purchase/sale cycle can assist you to create an efficient marketplace. All you require is well-crafted research and to remedy minor bits and pieces constantly. If you have any questions with respect to the online marketplace platform, feel free to contact our Marketplace Experts.

For Further Details or Additional Information


If you want to know more about our Services