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Ecwid Ecommerce Glossary

Third Party

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What is a third party?

A third party is a company less directly involved in a matter than the main companies that are involved.

E-commerce marketplaces like Amazon or eBay are examples of a third-party in e-commerce. They manage and host online sales for businesses for a fee. Online merchants can sell their products to customers through platforms like Amazon or eBay and they pay a fee for using the channel, usually on a per-sale basis.

Pros of selling through a third party:

  • Exposing your products to a new audience, an existing customer base of a platform
  • A low cost of entry — creating a seller account on e-commerce marketplaces is usually free

Cons of selling through a third party:

  • You need to pay fees from each sale you make
  • It’s harder to promote your own brand when you sell through a third party and don’t have your website

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