E-commerce has spurned a new generation of entrepreneur who are now selling only through e-commerce platforms. The platform owners have invested heavily in technology making it a seemingly simple process to buy and sell online.

The advent of broadband and internet penetration has further fueled the growth of e-commerce.

Apart from the marketplace models of Amazon, Flipkart and Ebay, there are other sites which operate in a niche marketplace and may offer better visibility to new entrants. Almost every vertical or a business line has its own dedicated marketplace or aggragators.

Some of the advantages of selling online are:

1. Keep limited inventory
2. Payment cycle is fast
3. No need to rent a shop
4. No overheads
5. Can monitor sales and understand consumer behaviour.

However there are some Challenges as well:

1. Overcrowding in almost all categories
2. Visibility of the products are a problems
3. Returns can dent your profit margins and bring negative publicity