What is The Differences Between Ecommerce and Marketplace ?

Are you looking for the best place to sell your products online ?

The problem about online segment is to general, you need to decide where’s the best place to sell your product. The offered option for today to sell your product online is limitless. Ideally, you want to make a biggest profit as you can. But at the same time, you may don’t want to overwhelm yourself with the work involved selling your online products on multiple platforms.

Ecommerce and Marketplace scale — Illustration between ecommerce and marketplace available in Indonesia

According to surveys held by Statista, In 2019 global eCommerce market will cross the two trillion US$ threshold. With US$634 billion in sales in 2018. With that number in mind, we’ll help you understand the differences between ecommerce and marketplace and which option fits your business the most.

In this opportunity, we are going to tell you the differences between Ecommerce and Marketplace, and the advantage and disadvantage selling on those platform to see the best place to generate your most profit. Should you sell on an eCommerce or a marketplace platform or maybe both ?

Marketplace

Marketplace is a third – party site that facilities product listings from many different sellers across product categories like Amazon, Ebay, Bukalapak, etc.

Ecommerce

Ecommerce is an own online site that selling of goods and services, Many are built using eCommerce platforms like Magento, Shopify, BigCommerce, and WooCommerce.

Whats the differences between Marketplaces and Ecommerce platform

The main differences between marketplaces and eCommerce platform really depend on what you’re selling. A marketplaces traffic will make millions of visitors available to you, but you’ll be have a thousands of competitors. An eCommerce, you are creating it from scratch, giving you the ability to do whatever you want and choosing the design, the shipping providers, selecting the products you want to highlight on the homepage, etc. but you’ll need to put in serious effort to ramp up traffic and drive sales.

Advantage of selling on Ecommerce Platform

[Advantage #1] Better Profit Margin

If your brand has a popularity, your own brand’s e-commerce website will allow you to have more control over your online revenue.This will make the profits you earn on your products even higher as you’ll be able to charge your own price, and sell the buyer on value and not on price. Additionally, not competing with other companies on the same site allows you to make more sales by suggesting complementary products to purchased items.

[Advantage #2] Visibility on your site performance

An eCommerce platform, give you a complete picture of your customers data that’s you can study and analyze your customers according to their behavior . This will make you to know about your customers personalized and build a good strategic to keep your customers and improve your profit.

[Advantage #3] Full Control of your own business

When you use eCommerce platform you have a full control about your eCommerce platform, whatever you want like choosing the design, shipping providers, payment methods, etc.

Disadvantage of selling on Ecommerce Platform

[Disadvantage #1] No One Can Buy During a Site Crash

The worst of the eCommerce disadvantages is when your site crash, no one can buy from your store. That’s why it’s important to ensure your website is hosted on the right platform. For example, if you’re paying the minimum hosting fee and get a surge in traffic from a high converting your site will likely crash.

Advantage of selling on Marketplace

[Advantage #1] There is Already Traffic on Marketplace

When you use marketplaces there is already traffic on the site. This will make a large market share, Because these sites already have traffic running through them, the chance of a potential customer finding a product like yours is higher. But it will be so much competitor on the marketplaces.

Disadvantage of selling on Marketplace

[Disadvantage #1] Reduce Profit Margin

When you use marketplaces, you must pay the charge for your selling on their platform. There are three types of fees on marketplaces, fee per month, fee per listing, and fee per sale. This will make reduce your profit margin.

[Disadvantage #2] Rules and Guidelines

Rules and Guidelines on a marketplaces, which can constraint your activity. This make you don’t have a full control about your store.

Conclusion

Have you understood the differences between ecommerce and marketplace? And have you decided which option fits your business the most?

You can use both of marketplaces and eCommerce platform but you must give more effort to control your store.
When you choose marketplaces the traffic will make millions of visitors available to you, but you’ll be have a thousands of competitors.
When you choose eCommerce platform it will build your own brand goes a long way. If success, you will get your loyal customers who are your biggest advocates as well as your biggest source of recurring revenue.

Now what’s your choice eCommerce or Marketplace ? Let’s try our Free Consultation Here!!