Many online enterprises are seeking to expand to foreign markets, but they are deterred by the initial investment. Often they lack the funds to develop logistics, inventory, marketing and other processes required for a global business.
Today, many small online businesses are joining the e-commerce marketplace business model, which enables them to connect to a large enterprise that serves as an umbrella for many small online businesses. Large companies like Amazon, Etsy, eBay, Snapdeal and others provide all the online services a fledgling business needs to start operating in new markets. However, there are also disadvantages which an online marketer must consider before jumping in.