Online website business has become vital for all to suit major requirements. The role of E-commerce websites and the marketplace are major parts of online business. Even though E-commerce websites and the marketplace look alike but they differ a lot in many aspects. There are major differences seen between these two online platforms. Let us see the differences here
The marketplace is an online platform meant for sellers and buyers like a physical market. The market place is solely meant for third party owners to do their online business. Third-party business professionals can make business with the customers and invoice them. Here the owner of the marketplace does not have any involvement with customers and making invoices. In simple words. as many as sellers can sell their products directly to the customers on the marketplace and make money. This is entirely different from the E-commerce website because the inventory is maintained and owned by the website owner only. The website owner has the right to sell the products and make invoices. Here the third party owners are not allowed to do business online.
Secondly, the buyers alone are targeted in E-commerce website professionals whereas in the marketplace both buyers and sellers are targeted for a good business online. The individual vendors on E-commerce websites have to spend time and money driving traffic to their websites. The buyers can make their purchase with a single company online whereas it is not so in the marketplace because there are many brands online. Hence, the existence of the company online has to be promoted by the merchants.
E-commerce websites have to take financial risks by investing constantly. However, the marketplace does not take so much financial risk. Hence, the economic scalability of the market place is heavier than the E-commerce websites. Also, the requirment of time and money is more for an E-commerce website for setting up and maintaining. E-commerce websites require heavy care and have more issues than the market place. The profit margins for market place is more and it is purely dependent on the percentage transactions. The volume of products sold in the market place is more when compared with the E-commerce websites.
Audience engagement is very difficult with E-commerce websites whereas in the marketplace the audience engagement is based on its network and can be achievable. The marketplace needs more buyers which invite more sellers. E-commerce websites require more tools for building up a website. A lot of technical aspects are required for website development and maintenance. This is not so with the marketplace where you need only specific operations with limited tools. Moreover, it is a one-stop-shop for the buyers to sell and the sellers to buy.
Navigation and pattern form of E-commerce websites and market place differ from each other. The Marketplace has an organized pattern and well structured with regard to the products list. This is not so with the E-commerce websites where the product list is based on categories. The marketplace uses track indicators for analyzing the sales whereas the E-commerce websites it is not so. The reviews product are better to know from E-commerce websites when compared to the marketplace