How Online Selling Platforms Generate Revenue from Small and New Sellers: A Bitter Truth
Scam Starts from Here- In the digital age, online marketplaces are portrayed as a golden opportunity for small traders. It is said that anyone can start a business from home. But the ground reality is very different. Today, thousands of small and new sellers do join online platforms, but gradually they get trapped in a cycle where, in every situation, only the platform earns — not the seller.
Online Selling Platform Scam
1. Fake Orders: This Is Where It All Begins (Scam)
New sellers are made to believe that orders will start coming in as soon as they join the platform. Many times, sellers receive orders that:
- Are not accepted at the time of delivery (in COD cases)
- Are placed with incorrect addresses or fake phone numbers
- Are deliberately cancelled by the customer
On these orders, the seller:
- Bears the packaging costs
- Pays logistics charges
- Pays commission and portal fees
Whether the order is fake or genuine, the platform collects its fees in every situation.
2. The Mandatory Burden of Packaging Materials-(Scam)
Many platforms force sellers to purchase specific packaging materials:
- Branded boxes
- Labels
- Tape and pouches
This material is often more expensive than what is available in the open market. Whether the order is delivered or returned, this cost is borne by the seller — not the platform.
3. Misuse of COD, Return, and Refund Policies- (Scam)
Cash on Delivery (COD) is the biggest risk for small sellers:
The customer places an order but refuses it at the time of delivery
In returns, damaged or replaced products are sent back
Refunds are issued to customers immediately, but sellers receive payments weeks later
No matter what the reason for the return is, logistics and handling charges are always deducted from the seller.
Policy Misuse
4. Commission and Portal Fees Even on Fake Orders- (Scam)
This is the most shocking reality:
- Even on cancelled or returned orders
- Even on fake COD orders
The platform deducts:
- Commission
- Fixed portal fees
- Collection charges
In other words, where the seller suffers a loss, the platform’s profit is guaranteed.
5. Pressure to Run Mandatory Advertisements (Ads)- (Scam)
New sellers are given a clear message:
“Only if you run ads will you get orders.”
Organic (non-ad) orders are almost completely stopped. Sellers:
- Spend money on ads every day
- But see very low order conversion
This advertising spend goes directly into the platform’s pocket, whether there are sales or not.
Run Ad Campaign to get Fake Orders
6. Fake COD Orders Placed by Competitors-(Scam)
In many cases:
- Competitors deliberately place COD orders
- They do not accept the order at the time of delivery
As a result:
- The product gets stuck
- Reverse logistics costs are incurred
- Seller ratings get damaged
But the platform still receives:
- Logistics charges
- Portal fees
- Data showing increased activity
Everything benefits the platform.
Cheaters Competitors
7. In Every Situation, Only the Platform Earns- (Scam)
If you look closely:
- If the order is delivered → the platform earns
- If the order is returned → the platform earns
- If the order is fake → the platform earns
- If the seller runs ads → the platform earns
The loss is borne only by the seller.
“The poor make the rich richer”
“Conclusion”
Online selling platforms present themselves as “intermediaries,” but their policies are designed in such a way that the entire risk is borne by the seller, while all the profit goes to the platform. For small and new sellers, this system gradually becomes a source of financial and mental pressure.
Until there are:
- Transparent policies
- Protection against fake orders
- A fair return system
Online platforms will remain not an opportunity for small sellers, but a one-sided profit trap.
