As an online business owner, how do you know when it's better to go with an e-commerce solution or a marketplace?
Both have their benefits and drawbacks and knowing which option is best for your brand is important.
We'll go over some of the most important factors to consider when making this decision. We'll also provide some examples of each so you can better understand what they look like in practice. Let's go ahead and break out the definitions and features of each.
The Definition of an E-commerce Website
E-commerce is the act of purchasing or selling goods or services through the Internet using electronic data or money. This definition has evolved to include more specific instances of buying and selling via online platforms, e.g., Shopify, Magento, and BigCommerce.
These pre-built platforms make it easier for businesses to get their online stores up and running.
The Definition of a Marketplace Website
An e-commerce site that connects a variety of merchants and customers is known as an online marketplace. The marketplace owner owns the platform and helps individuals connect their products with buyers.
Companies utilize marketplaces to connect with clients interested in buying their goods and services. Amazon, eBay, and Craigslist are all examples of online marketplaces.
Benefits of E-commerce Platforms
- E-commerce websites provide considerable control of the website's functionality, navigation, and design. This means you are managing your website, from updating your logo to tweaking various design elements.
- E-commerce websites often allow for customer data collection. This allows you to save more information on customers for future marketing. Individuals can sign up for a mailing list and can typically follow you on social media.
- E-commerce websites allow you to build brand recognition. When customers put in your URL, they will be directed to your website, where they will be able to associate your products and services with that URL.
- You can develop the shopper experience you want based on your company values.
You can pretty much sell almost anything. If a consumer doesn't like something you sell, you can deal with it on your terms without the risk of being suspended or banned by the platform.
Benefits of a Using an Online Marketplace Platform
- It's easy to startup. Online marketplaces are made to be simple to navigate.
- You can create a storefront in minutes and then make use of payment processing and advertising revenue.
- You can distribute and ship channels in a fraction of the time it would take to find and register for these services on your own.
- There is little need for technical expertise or marketing resources. Unlike maintaining your website, you won't need much technical knowledge to start selling on marketplaces.
- No web server maintenance.
- Marketplaces are the best protection against hacks or outages in terms of reliability, so you can rest confident that your store will be open when your customers need to shop.
- You won't have to worry about maintaining your server or updating your plug-ins on a website. All of this takes place behind the scenes, which is one of the marketplace's advantages.
What each option costs in 2026
Online shopping keeps growing. The US Census Bureau estimates US retail e-commerce sales at $340.2 billion in the second quarter of 2026. That is 17.1% of all retail sales, and 12.2% more than a year earlier (released 18 August 2026). The bigger question is how much of each sale you keep. Here is what the main options charge, from each company's own pricing pages in October 2026:
| Option | Fixed cost | Cost per sale |
|---|---|---|
| Own store on Shopify | Basic plan CA$37/month billed yearly on Shopify's Canadian pricing page (prices vary by country) | Card processing from 2.8% + 30¢ on Basic, plus third-party transaction fees if you use another payment provider |
| Amazon | Individual: none; Professional: $39.99/month | $0.99 per item on Individual, plus a referral fee that depends on the category (from 5% up to 45%, usually with a $0.30 minimum) |
| eBay | 250 free listings a month, then $0.35 per listing | 13.6% of the total sale up to $7,500 in most categories, plus $0.30 per order (orders of $10 or less) or $0.40 (over $10) |
| Etsy | $0.20 per listing (lasts 4 months) | 6.5% transaction fee, plus 3% + $0.25 payment processing; 15% on sales that come from Offsite Ads |
Example: a $50 sale (shipping and tax included). On eBay you pay 13.6% ($6.80) plus $0.40, or $7.20 in total (14.4%). On Etsy you pay $3.25 + $1.75 + $0.20, or $5.20 (10.4%), and $7.50 more if the buyer came through an Offsite Ad. In your own store you pay only card processing per sale, but you also pay the monthly plan and must find every buyer yourself.
How to choose
- Testing a new product or selling a few items a month? Use a marketplace. You pay only when you sell, and the buyers are already there.
- Selling regularly, with repeat customers or a brand? On a marketplace you keep paying around 10-15% of every sale. Once those fees are higher than the cost of a store subscription plus your marketing, your own store usually costs less. You also keep the customer's email address.
- Using both? Many sellers list on a marketplace to find new buyers, then send repeat buyers to their own store.
The third option: run the marketplace yourself
This post is about selling on a marketplace, but you can also own one. If you know a niche well, such as a trade, a hobby or a local area, you can launch a marketplace where others list their items and you earn from featured listings, paid categories or memberships. Hosted platforms such as Yclas start at $69/month ($19/month for the first 6 months on new sites under the October 2026 offer) and have a 15-day free trial. You then collect fees instead of paying them, but you also have to bring in both buyers and sellers.
These are some brief notes on whether to consider an e-commerce storefront or leverage an existing marketplace to sell your items.
