Third Party

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