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Difference Between E-commerce And Online Marketplace

Firstly, What is E-Commerce and Online Marketplace?

E-commerce means the trading and merchandising of products. They’re basically of three types. The simple meaning, the shopping happening through the internet network. The process in which there’s no involvement of customer called as business to a business method, if the customer and the seller involved its business to customer method, etc. the few examples eBay, Amazon. The availability and reach gained by the products of e-commerce, a very wide range globally. The customized and personal goods available. A few tasks like buying tickets online, footwear shopping, etc. Here there are no intermediates involved they can directly pay to the sellers whose products being purchased.

The online marketplace, similar to that of the physical mode market where the other members get in partnership with the owner of the online market, and all the goods can sell there but the money transactions can be made only through the owner. It does not need many requirements for setting up as does not have any retail stores. The materials will be sold by the sellers but the way of selling done through the portal. The portal helps customers or the consumers the idea of searching for products from the lot. Here they need to make the payments through the owner of the site. Once you know how to maintain the E-commerce and online marketplace can be set up later as per the requirements and it also easy to do so. This online marketplace involves intermediates in the process of buying or selling.

Ecommerce vs Online Marketplace

Benefits of E-Commerce and Online Marketplace

After setting up the online market place the next step is getting approval for being the third-party retailers and later the products is up for sale in the market and the customers get to see the products and the further processes developed step by step. The work of intermediates in the online marketplace is to maintain both the retailers and the customers. The retailers have the opportunity to showcase their products and the customers can choose the products of the retailers as per the requirements.

Let’s have a look of the benefits of both E-commerce and Online Marketplace below

Online marketplace benefits

The online marketplace always has wide participants having millions of options to choose from. The marketing in the online marketplace site done by building interest in new products. They don’t have the inventory management process involved. The process of starting with the online marketplace, a very simple and easy. It does not require much work to be done. The launch can be completed in a day or two. The commission cost can be ranging from 5 percentages to 15 percentages. There’s no need for the persons to have the technical knowledge involved. It has the categories option as an inbuilt feature.

E-commerce benefits

The Difference Between E-Commerce and Online Marketplace

The e-commerce sites need to gain customers by attracting them in different ways possible. Here in the e-commerce sites, the retailer must take care of their product maintenance and quality management. These sites have their inventory running in the back end. The process of setting up the e-commerce site is very time-consuming and needs to be done by the individuals involved. Here the retailers directly pay the amount to the site owners. There no involvement of commission in the e-commerce process. Here in the e-commerce portal, the customers can customize their requirements by using the filters. 

Difference between E-commerce and online marketplace

The access for the customers to use the e-commerce sites is 24 *7 and a wide range of varieties are available for a single product. Even the cost of the products is reasonable and affordable. Customization of few products is available according to customer requirements but the setup process is more tedious work to do and recommendations of the product to others also increase. The customer service and queries solving time reduced and viewing of the product only at the time of delivery and the product replace options are also available in most of the e-commerce sites. The queries clarified in the chat sections available with the customer service persons. If the payments are done online check the details once or twice before placing the order. Before buying the product on e-commerce sites get to know the full information about the return policies.

1. Approach towards the technology

The online marketplace sites give the customers the advantage of getting everything in one place according to the requirement. The technologies used in this are a bit complex.

The e-commerce portal, designed and built in such a way that they’re produced to customers as stores get to choose on which store to select to buy products.

2. Scalability purpose

The scalability involved in the marketplace comparatively easy and it does not proceed with the process like investing in the stocks or taking risks in financial states.

In other had the e-commerce easy to build and the profits gained comparatively less than that of the marketplace.

3. Inventory

The inventory should always make large to attract the customers and they can find what’s actually available. Build the application that makes the customer stay loyal to the site and they can shop anything that’s needed.

4. Engagement of audience

Both marketplace and e-commerce require customer engagement. But it’s difficult to find customer engagement on a platform like e-commerce and it involves a lot of time and money. Social media, a great help to engage customers. While the marketplace depends only on satisfying the objectives of the sellers and customers. Customer attraction in the marketplace compared to e-commerce sites.

5. Navigations

The products in the e-commerce portal arranged based on the filters and requirements whereas in the marketplace the products already organized. The customers can easily customize the products according to the requirements needed. The navigation, different in both the portals that are e-commerce and marketplace.


All of these sites and platforms used to make customers aware of the different types of products available. This is one of the many ways in which retailers can sell their products. Nowadays people are so busy with their work that they do not have time to do all these processes. So they choose the platforms where the work takes place with one touch sitting in the same place where they are. These platforms used for many methods. They’re a little connection between e-commerce and the online marketplace where building commerce sites can be easy if you know how to manage the marketplace. Only if your products are popular and well-known can you set up your commercial platforms. These e-commerce platforms already have a few built-in features that you can change if you are new to this field.