In this study, the prevailing challenges and opportunities of e-marketplacerndevelopment in Ethiopia were addressed. with regard to this, assessing thernexisting challenges and opportunities of e-marketplaces is the most importantrntheme of the study. data were collected through questionnaires from a samplernof four companies operating in e-marketplaces and a total of 408 samplerninternet users. Various challenges of e-marketplaces were found during the study at eenvironment,rnsocietal, business and consumer levels. despite these challengesrnin the operations of e-marketplaces in the country, there is a potential marketrnfor business firmsrnBased on the findings of the study, devising governmental poliCies and legalrnframework, extensive education campaigns and promotional activities to creaternawareness of e-marketplaces are among the most important recommendationsrnforwarded