The market operator does not own any inventory. Instead, their job is to showcase other people's products to customers and facilitate transactions. The Marketplace and eCommerce platforms have similar business objectives, mainly selling products to customers. Let's look at this question from the perspective of an online retailer.
We'll help you weigh the pros and cons and decide which option is best for your business. Next, we'll review the web development aspect and see if ecommerce sites or marketplace platforms are the best options for your trading purposes. In simple terms, a marketplace is a website in which the products offered come from multiple sellers. The variety of assortments offered by a market is exactly what attracts customers, just like a shopping mall does in real life.
The size of the commission varies greatly from market to market and can range from 0% (Flubit) to a whopping 50% (Germany's second largest e-commerce Otto). There are hybrid approaches that allow retailers to have an e-commerce site and sell their products on a marketplace platform. To achieve customer reach and brand recognition, many online merchants sell both in marketplaces and on their own website.
The main difference between marketplace and e-commerce is that a marketplace is a website that sells products from multiple sellers, while an e-commerce is a website that sells products from a single vendor to multiple customers. In addition, many consumers who shop in marketplaces assume that they are buying in that market, even though they are buying your products.
Instead of devoting time and resources to staff, space and actions, marketplace platforms can spend more time developing web and mobile applications to create a rich user experience. Marketplace platforms charge businesses when they list items; they charge a commission for each sale made, and depending on the platform you choose, you will also be charged other fees.
In 1997, Yannis Bakos studied online markets and came to consider them as a special type of electronic marketplace. Many people who buy in marketplaces assume that they are buying in that market (even though they are buying your products). In addition, you can easily start selling and reach potential customers who have already purchased on the online marketplace.
Join 20,000+ sellers% 26 startups and get proven strategies on how to grow a profitable business in the marketplace. As marketplaces work like third parties, they don't allow sellers to communicate with buyers off-site (however, the marketplace may contact your customers again in the future).
In recent years, online markets have been a growing trend, demonstrating that the shift from e-commerce to market can be a turning point for companies in a fast-paced digital world. For example, a marketplace is an online platform on which the website owner allows third-party sellers to sell on the platform and invoice customers directly; that is, online marketplaces are not owned by any individual seller, so the transaction and payment are managed by the marketplace itself.
On the other hand, in marketplaces, if there is a product that is not sold, you can choose to deactivate it with the push of a button. Find out how to rank on google.