Hyperwallet surveyed 1,500 ecommerce marketplace sellers to understand their perceptions of selling on ecommerce marketplaces, such as Amazon and Etsy.
One of the key factors limiting sellers’ geographic reach is difficulties with cross-border payments. 33% of respondents only sell in the continental US. The difficulty, inefficiency, and cost associated with international payment processes prevent them from selling to other geographies.
While most ecommerce marketplace sellers are satisfied with available payment options and speed of payments, a handful of respondents pointed out several areas for improvement. These include the need for lower costs and fees, more flexible payment options, and a shorter turnaround time for money transfers.
More than one in 10 sellers (13%) missed or delayed a payment obligation – such as paying bills or rent – due to delayed payment processing from an ecommerce marketplace. Additionally, almost one-third of sellers (30%) have had to wait more than a week for a payment to process.
The top reason – other than overall number of buyers – that sellers stay loyal to their marketplaces (at 59% of respondents) is speed of payments. And more than one in 10 sellers (13%) have switched ecommerce marketplaces due to frustrating payment processes – either because fees were too high or payments took too long to process.
More than one-quarter of sellers (26%) have not received payments for a product sold and more than half of sellers (53%) don’t trust the security of their ecommerce marketplaces.
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