Ecommerce Website Vs Marketplace Solution - What are the Top 5 Differences?

A marketplace solution and an eCommerce website are two distinct establishments with distinct features, workflows, and business potentials. Consider the top five differences between an eCommerce website and a marketplace solution.




The marketplace is a platform that allows you to buy or sell a diverse range of products from multiple vendors whereas e-commerce is a web store of a single seller for selling goods.

While both are online stores that sell a wide range of products, there are several significant differences between them. Understanding the differences between the two is essential if you plan on selling your products online.


Top 5 Differences between an Ecommerce Website and a Marketplace Solution


Here are the five most important differences between Marketplace and E-commerce that you should be concerned of:


1. Investment


Ecommerce website: To start an eCommerce website, it is often necessary to invest a significant amount of money upfront to attract buyers with a large offering.

Marketplace: When it comes to marketplaces, you have the advantage of allowing vendors to handle their stock, which significantly reduces your initial investment. Marketplaces can index more products than an e-commerce site as the selection of products is from multiple vendors. While the cost of launching a robust marketplace is roughly the same as that of an e-commerce website, the simplicity of a marketplace is much more.


2. Inventory


Marketplace: Marketplaces have a large inventory, so it is easy for the customers to find the product of their choice. It is also simple to update or replace a product that has gone unsold or is no longer in demand.

Ecommerce Website: If the inventory is more viewable, it will be easier for customers to find the product they are looking for. For the eCommerce website, you’ll need to invest a huge amount in the inventory to offer the customers top services.


3. Revenue Generation


Marketplace: Marketplaces do not sell their products on their website and increase profits through commissions. They receive a commission every time someone purchases a product from their platform.

Ecommerce Website: E-commerce platforms, on the other hand, typically sell products of a single brand and generate revenue from their sales.


4. Positive Cashflow


E-commerce: E-commerce websites with larger initial investments, revenues, and resources will take longer to break up.

Marketplace: Marketplaces enjoy better profit margins since the revenue generated is made up from the percentage of transactions. Based on the volume of transactions, the money earned is generally re-invested into product development to boost growth.


5. Store Management


E-commerce: However, if you run an e-commerce store for your brand, you will be entirely responsible for management and marketing.

Marketplace: The marketplace is capable of managing the online platform for all the sellers. In most cases, even the marketing aspect is controlled by the marketplace.


What is Ecommerce Website?


An Ecommerce Websites is simply a website where a single seller sells their products to buyers or customers. Thus, in this buying and selling process, two parties are involved – the buyer and the seller.

Since an eCommerce website does not offer a wide variety of products to its customers, it is also known as a 'Stand Alone Website.'

The Ecommerce Website is prominent and sells its stock directly to the audience without the use of intermediaries. The company is responsible for product manufacturing, sourcing, storing, and distributing the items when sales require.

In a nutshell, this model is appropriate for startups that want to sell their stock directly to their target audience rather than through an intermediary.


What is Marketplace Solution?




An Online Marketplace is a web store that sells products from multiple merchants. In a multi-vendor e-commerce website or marketplace, multiple sellers or business owners sell their goods or services to a wide range of customers.

An online marketplace is nothing but an online store that has several sellers who come together to sell their products or services, resulting in achieving the highest profit. When they get together, they conduct a large number of transactions between buyers and sellers.

Multiple sellers will typically sell their products or services on a marketplace owned by an administrator in an online marketplace system. The buyers come to the global market and gain the opportunity to buy the products or services from varied sellers or brands.

The procedure assists buyers in selecting from a wide range of products and/or services. This aspect plays a key role in traffic to your website. A multi-vendor marketplace consists of three major entities. They are the administrator, the vendor, and the customer. All vendors and sellers must be registered on the admin's website to sell their products or services.

As a result, an online marketplace is a system in which multiple merchants collaborate to show and sell their products with the help of a mediator, or an administrator.
Because of the numerous vendors involved in this model, there is the potential for even greater returns.

Customers can buy products from a variety of suppliers all under one roof, saving them time and effort. This model involves the vendor, the customer, and the administrator. The admin is in charge of the marketplace where these items are sold.

Using the multiple-vendor model, customers can save time and effort by purchasing products from multiple sellers under one roof. The marketplace provides clients with industry sectors like grocery, food industry, service industry, and more.


Marketplace Vs. Ecommerce Website: What Is The Best Option For Your Business


In this growing digital market, the marketplace platforms and online stores have become a powerful eCommerce business model. Nowadays, there are numerous advantages to selling products online. One can reach a large target audience by selling 24/7 on online platforms than the physical shops.


When it comes to selling the services online, you may find two options available –


  • eCommerce websites

  • Marketplace Platforms


If you are willing to enter the e-commerce market with your products, there are several options from which to choose. You can begin selling in the existing marketplace, or you can invest in the development of your online store.

If you're new to the eCommerce industry and want to sell your products and services online, choosing the best platform for your business niche is a challenging task.

When selling your products online, you have two options: marketplace sites and eCommerce sites. You should have a good understanding of these to choose the best approach for your business.

Selling in an e-commerce store, as well as an online marketplace, can be profitable. Both of them have their fair share of hurdles when it comes to website development and marketing.

Online marketplaces are an excellent place to start for eCommerce beginners since they allow you to reduce the upfront costs, risks, and time required to set up a business.

Otherwise, if you already have a well-known brand and don't want to share your profits with a marketplace, or if you require a custom-made solution, creating your eCommerce website could be the way to go. eCommerce or online marketplace is a great place for selling, but it’s not the only choice when you can use both to make your business thrive.

Marketplaces and e-commerce platforms both have their benefits. Some retailers prefer to create an e-commerce website, whereas others prefer to create an online marketplace.

The choice between the two is determined by your expectations, goals, and level of expertise. You can also choose a hybrid model in which you list your products on popular marketplaces and sell them through your e-commerce store.

Single vendor and multi-vendor marketplaces help businesses increase their profits. They give businesses an advantage that offline stores do not. Customers benefit from the convenience of an online shopping app, which allows them to place orders 24/7. Essentially, your business is open every day without any breaks.

More and more entrepreneurs are looking into opportunities in multi-vendor marketplaces, as well as single vendor websites. Adapting business into a multi-vendor marketplace guarantees cash flow is constant and a minimal loss doesn’t affect business.

A multi-vendor marketplace is a quick way to build a successful business in a short timeframe. However, if you are looking for an online boutique store and want to play within a specific circle, a web store could be an excellent choice.

If you're looking for an e-commerce partner to help you set up an online store and a marketplace, our MartPro team is here to assist.

Whether you want to grow a traditional store, have an enterprise-level solution, or start a business from scratch, MartPro helps you with the growth and performance of your multi-seller online store.


E-commerce vs Online Marketplace: What Are the Benefits for SMBs?


Benefits of Online Marketplace


  1. Low initial investment: The marketplace handles everything from infrastructure to maintenance. You are not required to pay for development costs. As a result, the investment is low.

  2. High Website Traffic: Since the Marketplaces are highly trusted websites, they have a lot of traffic.

  3. Excellent Customer Service: One of the major benefits of selling on this site is that it maintains a high standard and provides 24 x 7 customer service.


Benefits of eCommerce platform


  1. Complete brand control: Here, you have complete control over promoting your brand and building your brand reputation to drive more sales.

  2. Customization Freedom: With an eCommerce platform, you have complete control over your business. You can customize everything on the website from your design, layout, navigation, and many more.

  3. Retarget Customers: You can gather customer insights and add them to your mailing lists to promote offers and encourage them to shop on your site again.


Why Choose MartPro for eCommerce website and marketplace development?




If you want to start a business online, talk to MartPro's expert team, which specializes in eCommerce websites and marketplace development.

MartPro offers a complete eCommerce solution for creating B2B and B2C stores, multi-vendor marketplaces, and multilingual stores that do not require any additional plugins or apps. 

With 300+ built-in features, SEO tools, automated marketing solutions, a powerful tax engine, and enterprise-grade features, MartPro could be the best eCommerce platform for your business.

MartPro lets you build both a single-vendor online store and a multi-vendor marketplace. Built by MartPro, the software comes with all the core functions you require to run a global marketplace. What's the best part? The system applies to all industry verticals and can be implemented in a single day.

Our expert developers will cooperate with you to bring your ideas to life! We will ensure that your eCommerce site looks and functions exactly as you intended so that it can provide the most value to your business and customers.

Since the solution is incredibly versatile with exceptional user experience, many organizations rely on it. It also supports 50+ languages and over 100 payment gateways, making it more convenient for businesses.

MartPro is a ready-to-use eCommerce solution provider built with a mobile-first approach. The mobile-ready solution helps businesses in staying ahead of the e-commerce marketplace. 

Another advantage of eCommerce website development with MartPro is that you get mobile apps (Android/iOS) for your online store with no additional cost. It also includes a PWA store that functions on all devices as a native app.

You can gain a competitive advantage in this ever-changing market by utilizing our best online marketplace development services. MartPro offers a customized marketplace platform that empowers startups by lowering marketing costs and accelerating growth in a short time frame.

Our marketplace developers can help you turn your business idea into a reality by simplifying online marketplace development to meet your specific needs.

MartPro offers an eCommerce platform with pre-built features tailored to your business types, such as inventory management, order management, social signups, chat support, multiple payment gateways, and much more, at an affordable rate.

We provide the best-fit solutions that cater to our users' needs and fulfill customers with wonderful shopping experiences thanks to our renowned expertise and excellence in e-commerce app development.

We use the latest technologies to build the UI/UX features of your app. As a result, you will be able to easily meet the needs of all of your customers.

We guarantee that if you choose us as your eCommerce app development company, our eCommerce website development services will be delivered on time. We offer a user-friendly experience, wonderful user interfaces, responsive and intuitive designs, and custom-made solutions.

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