Online marketplace and E-commerce platforms seem to be the same thing, especially if you’re new in the business. And while their business purpose is the same – that is, to provide a platform where you can sell your goods to customers, they have many significant differences. anonig
An online marketplace is a platform where many third-party sellers can present their products. Meanwhile, an E-commerce platform is an online store where only a specific brand offers its products.
Luckily, you have the opportunity to connect those two platforms. For instance, you can perform a WooCommerce Amazon integration and link your platforms to one another. But even in this case, it’s good to know what differences these two platforms have. So let’s break down what sets them apart.
What Are The Differences Between Marketplace and E-commerce?
1. Spending Time And Money
One of the first things to catch attention is that selling goods on an existing online marketplace saves more time and money. At least at the beginning. You can start selling your products only by registering and listing your products. Additionally, you don’t have to worry about the development process or designing your shop because the marketplace has it all covered up. However, you must pay for every new listing, and also the provider will take a commission from every new purchase.
On the other hand, E-commerce development can seem intimidating and pricey. You have to pay for your domain name, HTTPS certificate, and some plugins and templates. However, it may be more profitable in the long run as you will own your website and won’t pay any commissions from your sales.
2. Marketing and Raising Brand Awareness
You want to get your name known in the market if you hope to have a long success. Marketing and brand recognition are two of the major factors for achieving it.
Stores on E-commerce platforms are unknown at the start. You won’t succeed without appearing in search results. You may have a perfect shop but not get enough visitors. That’s why you need to invest in SEO optimization and hire a project manager to perform multiple PPC campaigns.
Marketplaces, on the contrary, are more popular with the general public. You don’t have to spend time on building trust as they have faith in the marketplace even if they’re not familiar with the brand. This will obviously increase your sales, but you may stay unnoticed as a brand because it won’t raise brand awareness.
Similar to the previous part, building trusting bonds with your customers is essential.
When it comes to E-commerce platforms, you need to spend a lot of time and effort to get your potential customers to trust you. Most customers are more comfortable purchasing from a familiar marketplace than an unknown website. So, it’s pretty challenging to get your first customers for your E-commerce store. tinyzonetv
Although they seem very similar at first glance, marketplaces and E-commerce platforms have many differences. In this article, we’ve only scratched the surface as many more aspects need to be taken into account. So, whatever you decide to choose, make sure that the platform will meet your needs and plans.