What’s the Difference Between Marketplace and E-Commerce Platforms?
If you are already thinking of being an online vendor, you may begin to wonder about what your best option is. A case in point, Should you use an e-commerce marketplace or should you create a personal online store using an e-commerce platform? This piece will walk you through the differences between an e-commerce marketplace and an e-commerce platform.
Marketplace
An e-commerce marketplace is a website where diverse products are available from numerous sellers, just like you have in a physical marketplace. It is a convergence of different sellers selling different things. A marketplace website accommodates third-party sellers to list products and sell on the platform and invoice the customers directly. SpottR is an example of an online marketplace, it’s a shopping ecosystem that allows you to buy and sell without owning a website.
Advantages
- Customers are attracted to the variety that it offers which means you have a large customer base.
- It has a simple setup procedure.
- If you are new to online selling, it is convenient for testing the online market.
- You don’t need to be tech-savvy to begin in a marketplace.
- You don’t have to maintain a site or server which costs an extra amount of money.
- By associating with similar popular brands on the same marketplace, you can benefit from their already existent brand familiarity and customer base.
Ecommerce Platform
A website where a single vendor sells products and services to multiple customers. In this case, a specific single brand or multi-brand is dedicated to an online store and sells all products there. Technically, you own the website. An example of an e-commerce platform is Shopify. It’s a pre-built platform that helps online retailers build their stores.
- You have a variety of features to choose from and can build your website the way you want it.
- When people visit your website, it is exclusively to buy from you. No competitors share the website with your brand.
- You have access to customer data for future marketing
- No sales restrictions or rules to abide by. You don’t worry about getting banned if something goes wrong between you and a customer.
- Fees do not change arbitrarily. You control all the pricing on your website.
- You can build your own brand recognition especially if you want to expand. People begin to associate your URL with your brand.
Core differences between online marketplaces and e-commerce platforms
Charges
On marketplace platforms, you are allowed to pay commissions while you pay a hosting fee to the e-commerce platform.
Maintenance
An e-commerce marketplace is responsible for the maintenance of the site. On the other hand, if you host your website on an e-commerce platform, you are responsible for your website’s maintenance.
Setup
You can achieve a quick setup within a day on a marketplace. But on an e-commerce platform, because you set up almost from scratch, it can be time-consuming and takes days to fix.
Marketing
A marketplace attracts marketing and follow-up leads that bring traffic to the site. But on an e-commerce platform, you have to nurture leads and drive traffic to your blog.
Audience
An online marketplace offers a large audience your business needs because of the numerous choices it offers. An e-commerce platform receives only people interested in your services or products as visitors.
Parties
An online marketplace involves three parties. The website owner, third-party seller, and buyer, while e-commerce platforms involve two parties; the seller who owns the website and the buyer.
Your choice should depend on what you want for your business and which is better strategically poised to help your growth. The SpottR app is designed to help big and small businesses looking for visibility. It connects buyers to sellers within minutes and offers alternative payment options that encourage cross-border sales. If you are seeking expansion for your business, our marketplace is a sure bet.
