How to Determine the Differences Between a Marketplace versus an Ecommerce Website

March 18th, 2022 | 3 min read

What's the difference between a marketplace and an e-commerce site? How do you select between the two as a retailer? Is it even necessary to make a decision?

Here are some things you might want to consider when setting up your online sales channel, as well as how each choice is strategically positioned to help you expand.

Although they are both used for online businesses, they have some major differences.

Before we go about the main difference between the two, let's review the definition of each.


Ecommerce 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 like Shopify, Magento, and BigCommerce. These pre-built platforms make it simple for businesses to get their online stores up and operating.


An e-commerce site that connects merchants and customers is known as an online marketplace. It's also known as an electronic marketplace, and the website owner is in charge of all transactions. Companies utilize internet marketplaces to connect with clients interested in buying their goods and services. Amazon, eBay, and Craigslist are examples of online marketplaces.

Benefits of Ecommerce platforms.

Ecommerce websites provide considerable control of the website's functionality, navigation, and design.

This means you are managing your website from updating your logo to elements tweaking.

Ecommerce 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 follow you on social media.

Ecommerce 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. Based on your company values, you can develop the shopper experience you want.

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 marketplace.

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, advertising, and even distribution and shipping 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.

You won't need much technical knowledge to start selling on marketplaces, unlike maintaining your website. You'll have what it takes to sell products or services and put up your accounts receivable information if you're conversant with social media networks.

No web server maintenance.

Marketplaces are the best-protected 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 marketplace's advantages.

Want to have a discussion about starting a marketplace? Contact us for more information.

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