E-commerce platforms and marketplaces have revolutionised the way we shop and conduct business. With the advent of the internet, buying and selling goods and services has never been easier.  Netizens often tend to use the terms “online marketplace” and “E-commerce platform” interchangeably without realising that the two are in fact very different from each other. In this blog post, we will discuss the key differences between a marketplace and an e-commerce platform.

 

The Definitions

A marketplace is an online platform where multiple vendors can sell their products or services to customers. The marketplace operator typically handles the payment process and customer service, but the vendors are responsible for shipping and handling their products. On the other hand, an e-commerce platform is a website or application that allows a single business to sell its products or services directly to customers.

 

Inventory and Product Listing

A marketplace offers a wide variety of products or services from different vendors, whereas an e-commerce platform only offers products or services from a single business. For example, Amazon is a marketplace, and it offers a wide variety of products from different vendors, whereas a company like Nike has its e-commerce platform, which only offers products from Nike.

 

Fee Structure

A marketplace usually charges a commission or a transaction fee for each sale made by a vendor. An e-commerce platform, on the other hand, may charge a monthly or annual fee, but it doesn’t charge a commission or transaction fee for each sale.

 

Control and Ownership

In a marketplace, the vendors have little control over the platform’s branding and customer experience. They are only responsible for shipping and handling their products. On the other hand, an e-commerce platform gives the business complete control over the branding and customer experience.

 

Can’t Decide which one to choose?

Brace Media specialises in Marketplace and E-commerce optimisation solutions that maximise your reach and improve your brand image on the internet. Interested in knowing more? Contact us today!