Online Marketplace is a platform where it allows the third party to place its product and service information and manage any transaction involving its products and services. Many people think there’s no difference between eCommerce and Online Marketplace. In fact, there are some things where the two would differ.
Online Marketplace allows users to register as a seller and sell their products on the website. The sellers are the one who manages all the transactions on the platform. The sellers don’t have any worries with maintaining the website. All they have to do is to manage their products and transactions with the customer. It is also commonly known as multi-vendor online shops.
On the other hand, eCommerce or electronic commerce is the means of selling and buying products through the internet. eCommerce is also known as a single vendor online shop because the seller is only the website owner or the administrator. Maintaining eCommerce as a single vendor shop is difficult because it can cost a lot to maintain the website.
In an online marketplace, sellers don’t need to spend on operating the website. As a seller, you can easily see the competition between your brand and others. Some online marketplace sites charge commissions for special features. There are also restrictions in which you have to follow with the terms and conditions of the platform.
In eCommerce, there are many responsibilities such as maintaining the website, listing and editing the products, and others. You have the authority to manage the website and there are no restrictions. Although, in a single vendor marketplace, there’s no wide range of product categories as the seller is only the website owner.
eCommerce and Online Marketplace have some differences with each other. Each has its advantages and disadvantages.
You can see their difference in:
If you have a business and you are interested in selling your products online, it is important that you know the difference between eCommerce and Online Marketplace. By knowing the difference, you can decide better where you would sell them and predict how successful you will get depending on what platform you choose.
MECACA Global Network is a digital marketing agency in Malaysia helping business owners who sell products online by promoting their business on social media platforms and in the online marketplace in Malaysia. We give creative digital marketing strategy and unique experience to satisfy our client’s customers with their content. Check us out on MECACA Global Network, get in touch with us and find out more!