It is no secret that consumers are spending a lot of money online each year. In fact, e-commerce grew 16 percent in the first half of 2016, while U.S. consumers are projected to spend $385 billion online this year, according to a Nov. 2016 Business Insider article. By 2020, Business Insider’s premium research service projects that number to rise to $632 billion.
This trend can be largely attributed to the success of the increasing number of third-party online marketplaces – not only the major e-retailers but also others that have emerged in recent years.
Many companies have utilized these online marketplaces to sell their products, both directly and through the aid of authorized distributors. And certainly it can be highly beneficial to sell online, outside of standard company websites.
Regardless of whether companies might be taking active roles in selling on third-party websites, e-commerce has made companies susceptible to abuse at the hands of online sellers. Therefore, it is important that companies work to both control pricing and stop unauthorized sellers in order to reap the benefits and avoid the pitfalls associated with online sales.