What is a marketplace in ecommerce?
A marketplace is an online platform where multiple sellers offer products or services to customers within a single digital environment. The platform facilitates listings, discovery, and often payments, while individual sellers manage their own inventory and fulfilment.
How do marketplaces work?
Sellers list products on the platform, set prices, and manage stock. Customers browse and purchase through the marketplace interface. The platform may handle payments and sometimes logistics, then transfers funds to sellers after deducting fees.
What are examples of marketplaces?
Examples include Amazon, eBay, Etsy, and Zalando. Each caters to different product categories and seller types.
Why do businesses sell on marketplaces?
They gain access to large existing customer bases, reduce marketing effort, and benefit from built in trust and infrastructure.
What are the drawbacks of marketplaces?
Fees can be high, competition is intense, and sellers have limited control over branding and customer relationships.