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E-commerce vs Online Marketplace along with Key Benefits

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Are you familiar with current online shopping trends and marketing strategies? The online world has brought some great changes to businesses that ultimately give benefits to entrepreneurs.

Things have changed a lot whether it comes to online shopping or following particular marketing strategies. Ecommerce is also rising at this moment that has made the world crazy, especially when we look at the online shopping trends. In this article, we’ll talk about eCommerce vs marketplace differences.

Both are different things that lead to one concept. Both the services are available for retailers and wholesalers. A retailer chooses both platforms to begin online selling, but with different goals and priorities.

It’s all about online selling and the customer shopping experience that makes the platform best. The pandemic crisis has given an excellent boost to online shopping. Let’s take a look at the differences!

What is eCommerce?

Ecommerce is a process of buying and selling using a reliable platform, where sellers and buyers interact with each other to create a lasting relationship.

what is ecommerce

Online selling has become so easy due to the platforms available for such activities. Some of the leading online selling eCommerce platforms are Shopify, Magento, BigCommerce, Wix and Weebly, etc.

The purpose is to boost sales by developing a strong relationship between both parties. A lot of entrepreneurs use these online channels to run their businesses and get the attention of potential buyers.

Indeed, the best way to turn your local business into a brand. With this, you convert visitors into potential conversions.

What is an online marketplace?

An online marketplace is also a similar kind of process that takes place on a third-party platform. It is different from the eCommerce process, as you work as a third party at an online marketplace.

what is an online marketplace

Some of the leading marketplaces are Walmart, eBay, Amazon, and Etsy. You also sell your products and services along with selling others’ products with no technicalities. Also, an online marketplace is ideal for entrepreneurs that work at big levels.

Benefits of Ecommerce Platforms

Despite looking at the terms, let’s discuss the benefits of eCommerce and online marketing places one by one. Here are the benefits of eCommerce platforms!

You Enjoy Complete Control over Ecommerce Platforms

The first benefit is to enjoy complete control over eCommerce platforms. You get excellent control over website design and development.

The functionality is all managed by you whether it comes to setting up navigation, uploading products, and changing the color scheme of products and logo design, you feel great using eCommerce platforms.

Collects Customer Data easily

After you enjoy complete control over eCommerce platforms, you also get a chance to collect customer information to establish your customer database for future use. You always enjoy this facility using various online store sources such as BigCommerce, Shopify and Magento, etc.

There is no restriction while exploring customers’ data. On the other hand, you can’t gather customer details on marketplaces. Thankfully, your visitors can follow-up emails and chase you on social media channels.

No On-site competition

If you are running an online store on an eCommerce platform, you are the boss of your own business. The competition is less and you never feel frustrated because of easy selling services. You are not in competition when it comes to selling your products and services.

Only you need strong marketing and advertising plans to boost your business. On the other hand, you have to stay on top to sell your goods on marketplaces. You have to work on search listings to become a reputed seller either you work directly or as a third-party seller.

Brand Recognition

Running a business on eCommerce is all about building your brand identity. You have complete chances of establishing your brand using eCommerce channels.

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Make a good marketing and advertising strategy to promote your products and services to become a brand. In this way, your brand will create the value that you expect from a solid marketing plan.

Own Fee Structure and Pricing Plan

When you begin your activities on eCommerce stores, you don’t have to rely on other sources to manage selling activities or follow a pricing plan. Every eCommerce business comes with a dedicated price plan and structure that provides you satisfaction when you start selling.

You pay for the theme and processing fee using online platforms. The dedicated price plans never affect your services. The payment processing is smooth and transparent and that is the advantage of choosing eCommerce platforms.

Limited Sales Restrictions

Once you set up your store on eCommerce platforms, you never feel any problem while selling your products and services. It never bothers you when it comes to selling and distant areas. Other than setting up a store at the local level, one can also establish an eCommerce business at the international level. So, you don’t come across sales restrictions using platforms including Shopify, Magento, and Weebly. You manage sales with complete confidence using online stores.

Benefits of an online marketplace

Online marketplaces are different from eCommerce stores. The marketplace is a concept of acting as third-party sellers, whereas the best platforms are Amazon, Walmart, and eBay.

You can’t build your brand, but you can always boost your sales. Let’s take a look at the benefits of online marketplaces!

Easy to Start

If you are looking at quick ways to sell products and services without developing a website, you must consider online marketplaces to get the sales done. It’s the quickest way to sell goods, as you easily set up the account and start selling.

Online marketplaces are specifically designed for sellers who search for easy-to-use platforms. It gives the option of a storefront that you can promote following the latest marketing and advertising techniques. Further, you can also handle the shipping section easily after signing up at all online marketplaces.

No technical resources required

If you are ready to begin online selling, you don’t need technical knowledge and skills to operate online marketing places. You can easily handle these platforms if you have basic knowledge of running social media sites.

The purpose is to list the products by adding valuable content to make a difference in the market. You can tackle all things on one page and that is the specialty of using online marketplaces for selling. There is no need for any technical skill to manage marketing.

No Server Maintenance

There is no need for any server maintenance when it comes to selling products on marketplaces. It is ideal for non-technical users who avoid website technicalities.

Third-party marketplaces require no server maintenance and provide easy access to users. Hence, they don’t have to update plugins just like in websites. Thankfully, they use these online marketplaces with no such technicalities.

Get access to potential customers

Online marketplaces also give you an opportunity to reach potential customers. Amazon is the best to find customers at retail levels, as you can meet so many users using Amazon and other online marketplaces to get the desired things.

Brand Awareness

You can see so many merchants offering a wide range of products with their own brand identities. It becomes easy to recognize brands following online marketplaces.

If you have got the attention of unique visitors and suddenly you launch a new product, you can retain the visitors with little advertising effort. The process is interesting.

Which one is better (eCommerce vs marketplace)?

It’s a long debate when it comes to selecting one particular platform to boost sales. In the discussion between marketplace and eCommerce, you can’t declare a winner.

Both have their own specifications and benefits that you enjoy while putting up sales effort. The concern is to handle advertising and marketing services on both platforms that you manage easily. 

Visitors appear on both online shopping channels and that is the common point. As far as the guarantee is concerned, you enjoy direct sales on eCommerce and the profit directly comes to you. In Amazon and other marketplaces, you earn money as a commission.


As per the above discussion, we have got the points about online marketplaces and eCommerce platforms. No doubt, both are used for selling online products and services. You enjoy complete control over online stores, while marketplaces are easier to handle and start.

You don’t have to follow a detailed selling process on marketplaces; even you need reasonable investment to launch your products. It is flexible and suitable for branding. On the other hand, eCommerce is a straightforward platform that directly belongs to the owner or seller.