Why it is Important to Make eCommerce Platforms Safe for Sellers

The coronavirus-induced global lockdowns forced more and more people to turn to the digital channels to shop for essentials. People stuck at home relied heavily on the ecommerce platforms for their essential supplies. According to McKinsey, the pace of digital adoption in the lockdowns has outpaced the growth projected for five years! Nearly 75% of these new users are likely to continue relying on digital channels even after the situation returns to normal.

This is good news for ecommerce platforms, as they are already witnessing exponential growth—both in terms of users and revenues—the world over. In 2019, the global ecommerce retail sales clocked $3.53 trillion, which is expected to reach $6.54 trillion by 2022, says Statista. It predicts that the revenues from the eCommerce market in India will reach $45, 894 million in 2020.

In India, the festive season is around the corner and ecommerce platforms will likely be the preferred destination for shopping due to the social distancing norms in force. This means ecommerce platforms must prepare for higher user traffic and criminal activities alike. Although ecommerce platforms take measures to protect their buyers from potential scams, they are often found lagging when security of sellers is concerned. For a safe ecommerce platform for all stakeholders, protecting the sellers is equally important.

Why protecting sellers is important

Cyber criminals find it easy to scam users on an ecommerce platfom as verification measures still remain inadequate. Cyber criminals can easily set up fraudulent seller accounts to sell fake or non-existent items. They can impersonate genuine sellers and post fake posts on social media platforms to scam people and phish out their personal details. Further, since cyber criminals know that buyers look at the ratings and read product reviews before purchase, they can easily discredit genuine sellers by downvoting their items or post fake reviews. All these activities can lead to loss of business for the sellers.

Seller discontent can mean loss of revenues for ecommerce platforms, as well. This is because sellers pay certain fees to use the ecommerce platforms. And, when a seller finds it difficult to operate or is scammed due to fraudulent activities, he/she will likely switch over to another ecommerce platform, which will not only cause loss of revenue but also damage to the brand. Therefore, it is also in the interest of the ecommerce platforms to safeguard the interests of the sellers and ensure they get a level playing field.

The article has been written by Neetu Katyal, Content and Marketing Consultant

She can be reached on LinkedIn.