Ans:

New sales channel

By becoming a member of an e-Marketplace, you open a low cost, highly functional and easy-to-use sales channel for your company. You expose your company and products to a new targeted audience that otherwise would have been untapped to you.

Low customer acquisition cost

Your mere presence in the e-Marketplace might bring you new customers. Since the buyers come to e-Marketplace themselves your cost of getting customers through this channel is relatively low in comparison to other traditional channels.

Improve customer service

Ability to have constant interaction through the e-Marketplace allows you to serve your customers better. You can track the whole ordering process from payment to delivery and bring greater efficiency in customer service. e-Marketplace provider will ensure the platform and service are uninterrupted. So your existing and potential clients can always communicate with you.

Efficient information sharing method

When needed, you can instantly update your catalog and inform your customers about changes. Whether you are launching a new product or having a web seminar, through e-Marketplace you can share the information more efficiently.

You may ask, if participation in an e-Marketplace is so beneficial, why companies are not flocking to e-Marketplaces.

The slower adoption can be blamed on various inadvertent factors:

	Many companies had fall short to generate significant sales from their own websites and look at e-Marketplaces with a dose of skepticism. But as studies show ecommerce endeavors fail, mainly, due to lack of proper planning and marketing, as many marketing / sales managers take the attitude that build-it-and-they-will-come.
	Many conservative suppliers claim that their business depends on close relationship with local buyers. In reality, you can also get access to local untapped market through e-Marketplaces. Another aspect - you can bring efficiency to your business by co-adopting an e-Marketplace along with your buyers.
	Many elderly executives are not very tech-savvy and afraid of adopting new technologies considering them too complex. In reality, e-business is virtual implementation of real life business processes and not very difficult to embrace.
	Fear of price shopping by buyers is another factor, why suppliers are reluctant to use e-Marketplaces. The ability of e-Marketplace to emphasize all characteristics of the product in product content and demonstrate buyer-specific pricing should eliminate this fear.
	Many, mistakenly, consider that participation cost in e-Marketplace is very high and will hurt their bottom line. The expenses related to e-Marketplace membership are, usually, a mere fraction of what you can save from the use of its different features.