The Need To Control Your Funds On An eCommerce Platform
One the biggest challenges vendors face when using centralized eCommerce platform is the control of their funds. This issue exists on several aspects which the blockchain can solve. Let's have a look at the main risks you face when you do business on a marketplace that controls your account for you:
Delay in payments
Most marketplaces don't pay you as soon as you made a sale. Rather, they would pay every week, 14 days or even go up to 60 days on some channels. Not only they take time to pay you, they sometimes also take into account arbitrary "reserves" on your funds. If you become a big seller, those reserves can become quite important.
The need to wait to get paid can create important issues regarding cash flows. What is often ironic is that these platforms will then "offer" you capital in the form of loans. So not only these delays create financial issues and anxiety, they can also force a good seller to have to finance itself. This is not right.
An even more important risk of having your funds controlled by a third party is if they decide to suspend or freeze your account. Sometimes this is warranted but sometimes it is not. A good seller who find itself with a frozen account for mysterious reasons can see their business go bankrupt or face hard financial hardship. The large centralized marketplaces often use bots and other techniques to control buyers and sellers on their platforms. Those bots can often mistakenly flag an account for no good reason.
What is even more incredible is what a seller who has its account suspended need to go through to get (if lucky) its account reinstated. Not only there are too many mistakes in blocking accounts, the time and stress vendors go through to get their listings back is unacceptable. Many vendors live with that constant fear of what can happen next. It's not a way to do business or to be able to plan effectively.
Blockchain and the control of your funds
On a decentralized eCommerce platform, these issues no longer exist. There are no intermediaries who would control transactions, payments, and available funds. Buyers and sellers are in a direct relationship and no one can do anything about it.
As centralized eCommerce platform become larger, they have a harder time to manage these issues. Marketplaces on the blockchain are the future of eCommerce as the current system cannot reliably resolve those issues.