This study examines the challenges faced by small and medium-sized enterprises (SMEs) in leveraging digital marketplaces across various industries in Gujarat. A descriptive and causal research design was adopted, and primary data were collected from 390 respondents through a structured questionnaire using stratified random sampling. The findings reveal several significant barriers, including high platform fees, inadequate digital skills, limited technical knowledge, cybersecurity concerns, intense competition, policy uncertainty, insufficient IT support, and system integration difficulties. The study highlights the need for improved digital capabilities, effective cost management, and strategic planning to facilitate successful digital marketplace adoption among SMEs.