The Hidden Risks of Using the Wrong B2B Portal:

 

Why Choosing the Wrong Portal Can Hurt Your Business? 

Retailers in India have been rapidly shifting to digital platforms to source products, cut costs, and expand margins. But here’s the catch choosing the wrong B2B portal in India can do more harm than good.

Many retailers assume all platforms are the same, but the difference between a reliable and an unreliable portal is night and day.

Hidden fees, delayed shipments, and fake suppliers are just the tip of the iceberg. For small and medium retailers already running on thin margins, one wrong choice can result in lost customers, broken trust, and unsold stock.

In this article, we’ll break down the hidden risks most retailers don’t talk about, explain how to identify red flags, and show how to safely test and evaluate platforms. This isn’t about finding just the best it’s about finding the right B2B supplier portal in India that fits your business goals.

Hidden Fees That Drain Retail Margins

One of the biggest frustrations retailers face is the unexpected cost of doing business on a portal. At first glance, many sites promote “free registration” or “lowest commission,” but the fine print often hides transaction charges, storage costs, or logistics markups.

For small retailers, even a 2–3% additional fee can eat into already tight profit margins. The challenge is that these charges are often invisible until you’ve signed up, integrated with the platform, and started placing orders.

Common hidden fees on B2B portals include:

• Service charges per transaction

• Premium listing fees disguised as “visibility packages”

• Escrow handling charges for payments

• Logistics and warehousing markups

While these may look small individually, when multiplied over hundreds of orders, they can turn a profitable business into a cash-flow struggle. Retailers must always read contracts carefully, calculate the actual landed cost, and compare multiple platforms before locking in.

The Risk of Unreliable Suppliers

Another overlooked risk is unreliable suppliers who either vanish after receiving orders or fail to deliver consistent quality. On paper, a supplier might look perfect—competitive pricing, good catalog, even impressive reviews but without strong verification mechanisms, retailers are left exposed.

For example, imagine a small electronics retailer sourcing chargers through a portal. If one shipment is defective, it doesn’t just mean replacement costs. It damages the store’s reputation with end customers, leading to refunds, poor ratings, and lost sales.

Warning signs of unreliable suppliers include:

• No business license or GST information provided

• Poor response rate to queries

• Inconsistent pricing for the same product

• No clear return or replacement policy

This is where choosing the best B2B portal in India matters. Strong portals put suppliers through strict verification, while weaker ones simply list anyone who pays a registration fee. Retailers need the former to avoid costly risks.

Impact on Brand Reputation and Customer Trust

For a retailer, customer trust is everything. No matter how good your marketing or store location is, if the product you deliver is substandard, your brand image takes the hit. Unfortunately, poor product quality and missed delivery schedules are common when working with weak portals.

In today’s hyper-competitive retail environment, customers expect consistency. They won’t accept excuses about “supplier delays” or “portal issues.” They only remember that your store failed them.

This is why relying on the wrong B2B supplier portal in India is not just an operational risk it’s a direct threat to your brand reputation. And rebuilding lost trust is far harder than maintaining it.

Three ways the wrong portal can damage brand trust:

1. Delays in restocking popular items leading to empty shelves.

2. Poor quality products forcing high refund rates.

3. Mismatched products (wrong sizes, colors, or specs) creating customer dissatisfaction.

Retailers must see platform choice not just as a procurement decision but as a reputation safeguard.

How to Conduct Due Diligence Before Choosing a Portal

The first step to avoiding mistakes is conducting due diligence before committing to a B2B portal in India. Too many retailers rush into signing up without understanding how the platform operates.

Instead of falling for promotional promises, retailers should dig deeper. This involves checking not just the platform’s website but also independent reviews, supplier ratings, and whether the portal enforces strict verification.

Checklist for due diligence on a B2B portal:

• Verify supplier background checks: GST, ISO, export licenses

• Analyze return/replacement policies in detail

• Compare commission structures and hidden fees

• Study platform reputation on independent forums

• Ask for testimonials from other retailers in your industry

By applying this lens, retailers can filter out weak portals and shortlist the ones that actually align with their long-term growth strategy.

Testing Portals and Suppliers Safely

Even after due diligence, it’s wise to test suppliers and platforms with small, controlled orders before scaling up. Retailers who jump straight into bulk procurement without testing risk losing lakhs in inventory.

For instance, if you’re sourcing garments, start by ordering a few SKUs from multiple suppliers on different portals. Compare product quality, delivery time, and after-sales support. This hands-on trial is often more revealing than reading portal descriptions.

Safe testing practices include:

• Start with minimum order quantities (MOQs)

• Place test orders across 2–3 portals for comparison

• Monitor delivery timelines and communication quality

• Track after-sales resolution speed

The best B2B portal for manufacturers or suppliers will prove its reliability during this trial stage. If a portal can consistently meet small commitments, scaling becomes safer.

Metrics Retailers Must Track on Portals

The mistake many retailers make is evaluating portals only on supplier numbers. But that’s like judging a school by its number of students instead of its teaching quality.

Instead, retailers should track specific KPIs that measure actual business impact.

Key metrics to evaluate the right B2B supplier portal in India include:

• Order growth rate: Are sales growing due to better sourcing?

• Repeat purchase rate: Do suppliers deliver consistent value?

• Average order size: Is the portal enabling larger transactions?

• Seller satisfaction: Are suppliers happy with the portal?

• Churn rate: How many suppliers or retailers quit annually?

These numbers reveal whether a portal truly adds long-term value or just acts as a temporary sourcing option.

Competitive Landscape: Strong vs. Weak Portals

India has over 500+ B2B portals, but not all are built for retailers. The competitive landscape ranges from global giants like Alibaba to niche portals like Moglix for industrial tools.

The challenge lies in identifying what makes one portal strong and another weak. Strong portals usually have verified suppliers, robust logistics, and transparent pricing. Weak ones, however, prioritize volume over quality and allow anyone to list products with minimal checks.

Retailers must differentiate between:

• Generalist portals (IndiaMART, TradeIndia): Huge supplier base but often overwhelming.

• Niche portals (Moglix, Power2SME): Industry-focused, better for specialized needs.

• Global connectors (Alibaba): Best for exports but requires cautious vetting.

• Emerging players (Pepagora, L&T-SuFin): Combining verification with modern features.

Understanding this mix helps retailers pick the best B2B portal in India for their exact category and scale.

Top B2B Portals Retailers Must Evaluate

In 2025, several portals stand out for small-medium retailers. Each has its own strengths and limitations.

1. IndiaMART – Largest supplier base in India, ideal for MSMEs but crowded and competitive.
2. TradeIndia – Old and reliable, with strong focus on exporters.
3. Udaan – Mobile-first, great for FMCG and fashion retailers.
4. Alibaba – Best for global reach but requires strong due diligence.
5. Pepagora – Emerging player with verified suppliers, SME focus, and modern features.

Instead of chasing the biggest platform, retailers should focus on the right fit. That’s where Pepagora stands out it’s designed for SMEs who want both verification and growth support.

The Missing Piece: Why Pepagora Fits Retailers Best

Most portals either prioritize suppliers or large enterprises. Pepagora, however, positions itself as the best B2B portal in India for SMEs and retailers who want reliable sourcing without being drowned in endless supplier lists.

Here’s why Pepagora fits the missing piece:

• Strict supplier verification for trust and transparency

• SME-friendly pricing without hidden fees

• Tools for global trade opportunities

• Focus on categories like apparel, machinery, electronics, and lifestyle

Retailers don’t just get access to suppliers; they get a partner invested in their long-term success.

Avoid Risks, Choose Growth

Choosing the wrong portal can trap retailers in a cycle of poor suppliers, hidden costs, and reputational damage. But with due diligence, safe testing, and the right metrics, these risks can be avoided.

The best B2B portal in India isn’t just the biggest it’s the one aligned with your goals. For SMEs and retailers, Pepagora provides the trust, tools, and verified suppliers needed to grow sustainably.

Sign up with Pepagora today and protect your business from costly mistakes.