Sep | 2021

E-commerce Marketplace

E commerce Marketplace

Table of Contents
  1. E-commerce Marketplace
  2. Types of Online Marketplace Platforms
    • Buyer-oriented
    • Supplier-oriented
    • Vertical and horizontal
    • Independent e-marketplace
  3. Benefits of Ecommerce Marketplace
    • Benefits to Businesses
    • Benefits for Buyers
    • Benefits for Sellers
  4. Conclusion

Is it advisable to arrange all your products in all existing online marketplaces? Why do traders shift from offline traditional markets to e-commerce marketplaces? MNCs like Amazon and eBay have been enlisted as eCommerce market giants successfully following the marketplace business models. It has been proven to be the most profitable business in web eCommerce. This software infrastructure runs the whole marketplace allowing many vendors to sell their products under one roof at once.

An eCommerce marketplace or online e-commerce marketing is a website or mobile app version where you can find a wide range of products from multiple vendors, shops or individuals showcased on the same platform. In precise, this can be subdivided into the Marketplace owner and third-party vendors.

The marketplace is where customers are attracted, transactions are processed, and third-party vendors deal the product manufacturing and shipping. Basically, e-commerce marketing follows the supply chain management method of Dropshipping. Through which it boosts the productivity on a single portal, where manufacturers do the trading direct to the customers. This reduces the hassle of the stock holding process. When it comes to revenue, a percentage of the sales is considered as a marketplace fee over individual products, categories, management, or shipping.

Types of Online Marketplace Platforms

There are different types of e-marketplaces based on different business models, target audience, the management approach or their method of operation - These are the main types of e-marketplace based on focus to help you choose the best.

  • Buyer-oriented
  • This Marketplace is run by a group of buyers to build a better trade environment. Through a Buyer-oriented marketplace, buyers could reduce the administrative costs achieving the best prices from the suppliers. This buyer-oriented portal links various suppliers to buyers. The suppliers can also advertise their products to a set of relevant customers.

  • Supplier-oriented
  • A supplier-oriented e-marketplace or supplier directory is a marketplace run by a group of suppliers for better sales channels and increased visibility. It helps in getting leads from a large number of potential buyers. Information about the suppliers, products or the region is accessible to the buyers and can be searched by the offered product or services.

  • Vertical and horizontal
  • It offers access to businesses vertically across segments of various industry sectors like automotive, construction, textile and chemical. Trading in this marketplace helps in improving operational efficiency and reducing the supply chain, inventory cost and procurement time. On the contrary, a horizontal e-marketplace connects buyers and sellers across different industries or regions. It allows buyers to acquire indirect products such as office equipment or stationery.

  • Independent e-marketplace
  • It is a Business-to-business online marketplace administered by a third party and is open to buyers and sellers from a particular industry. Alibaba.com and eBay are some giant examples of independent eCommerce marketplaces. People can register to these marketplaces and experience access to ads, request quotes and place bids on various products of the corresponding industry.

Benefits of Ecommerce Marketplace

  • Benefits to Businesses
    • Profit opportunities are increased as the marketplace concedes businesses or the platform operators to charge a cut on the products sold by the vendors.
    • It provides a transparent purchase process where all the details regarding the products, including their price and, availability are open to consumers on a single platform.
    • Enhanced opportunities for both suppliers and buyers towards new trading relationships within or across the supply chain.
    • These online platforms operate round the clock and so the time constraints for trading at various geographical locations can be avoided.

  • Benefits for Buyers
    • Consumers get access to a wide range of best quality products to compare at the most reasonable rates on a single website.
    • Easy buying options, best deals, offers and promotional rewards with real-time updated information on the price and availability of the products.
    • Build trading partnerships by exclusive dealings with trusted and established vendors.

  • Benefits for Sellers
    • It streamlines and manages a high standard by regular quote exchange linking new and old vendors.
    • This platform offers international e-marketplace trade opportunities enabling overseas sales.
    • The marketplace seems to be a supplementary sales channel to trade their products.
    • Small-sized businesses or vendors with no eCommerce websites could align with enterprises to gain better exposure at reduced marketing costs.

E-commerce is a road ahead with promising opportunities and scope for creative innovations in the IT industry. A marketplace is expected to be a safe, secure and convenient platform for trade activities offering the best shopping experience. The E-commerce marketplace has the potential to deliver a matchless trading experience and diverse opportunities that never existed before. Innovative startup ideas are icing on the cake for marketplaces today. To have a brief knowledge and understanding of the e-commerce marketplace management services, connect with the best e-commerce development company you could for effective e-commerce solutions and features.

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