E-commerce site and marketplace: what are the differences?

When we explore the world of online commerce, two terms come up frequently: e-commerce site and marketplace. Although these two concepts are linked to online commerce, they have fundamental differences in terms of structure, operation and objectives. Let’s take a look at these distinctions to better understand the particularities of each solution.

The e-commerce site: your own virtual shop

An e-commerce site, also known as an online shop, is a platform dedicated to a single commercial entity. It is a digital shop window where a company, whether a small artisanal boutique or a major international brand, presents its own products or services to private or professional customers.

On an e-commerce site, visitors can browse the catalogue, add items to their basket, and make purchases directly from a single seller who owns the site.

Main features of an e-commerce site

Own catalogue

On the online sales site, the products or services on offer are exclusively those of the company that owns the site.

Autonomous management

The company has total control over the management of orders, payments, shipping, prices and all other site functions.

Brand identity

The e-commerce site is an extension of the brand, reflecting its visual identity and commercial strategy.

To find out more about online shops, our article “What is an e-commerce website” is just the thing.

The marketplace: a shared commercial space

A marketplace is an online space where several third-party sellers can offer their products or services to a common audience, such as Amazon, ManoMano or Cdiscount, to name but a few.

It is a centralised platform that facilitates transactions between buyers and sellers, without necessarily owning the products on offer. Marketplaces create a dynamic ecosystem where different players can coexist and extend their reach.

Main characteristics of a marketplace

Multiple sellers

The marketplace enables several third-party sellers to offer their products on the same platform, without owning or operating the business.

Centralised management

The platform generally manages transactions, payments and sometimes even shipping for all the sellers, via a management system centralised by the operator.

Variety of products

A marketplace offers a variety of products from different sellers, giving consumers a wide choice.

The main differences between an e-commerce site and a marketplace

The business model

The main difference between an e-commerce site and a marketplace lies in the business model. An e-commerce site is an online shop that sells products or services under its own brand. The company is responsible for product purchasing, stock management, delivery and customer service.

A marketplace, on the other hand, is a platform that connects third-party sellers with buyers. The operator, the company that runs the marketplace, does not sell products or services directly, but it does receive commission on sales made on its platform.

The type of products or services offered

E-commerce sites generally have a limited range of products or services, but these are usually very extensive. For example, a clothing e-commerce site may have a wide range of men’s, women’s and children’s clothing, but only its own brand.

Marketplaces, on the other hand, offer a much wider range of products or services, but are generally shallower. For example, an electronics marketplace may have a catalogue of products from different brands or vendors, but it will not offer as wide a range as an e-commerce site specialising in electronic products.

Product ownership

On an e-commerce site, the products belong to a single company, whereas on a marketplace, they may come from multiple sellers who do not all have the same delivery, exchange or refund conditions.

The user experience

The user experience is also different on an e-commerce site and on a marketplace. On an e-commerce site, the experience is generally more personalised and tailored to the site’s brand. For example, a clothing e-commerce site may offer product recommendations based on the user’s previous purchases.

On a marketplace, the experience is generally more generic and less personalised. Users have to browse between different sellers to find the products they are looking for.

E-commerce site or marketplace, which model should you choose?

The choice of the most appropriate business model depends on a number of factors, including the nature of the products or services on offer, the size of the business and the company’s objectives.

If you want to control the entire value chain, the e-commerce model is the most suitable. In this way, you can guarantee the quality of the products or services you offer, as well as customer satisfaction.

If you want to outsource the management of products or services, the marketplace model is the most suitable. You can take advantage of a wider catalogue of products or services and a larger audience.

Conclusion

E-commerce sites and marketplaces are two e-commerce models with different advantages and disadvantages. The choice of the most appropriate model depends on the company’s objectives and the needs of its customers.

In conclusion, although e-commerce sites and marketplaces share the nature of online commerce, their structures and objectives differ considerably. The choice between the two depends on a company’s specific needs and its strategic vision for reaching its target audience.