Is It Worth To Start An Online E-commerce Marketplace
When shoppers have to decide whether to go to a store and go online to buy something, they choose to opt for online shopping. Around 1.92 billion people are expected to buy something online in 2019. Specifically, shoppers search for prices, compare them, and buy products in the marketplace for the convenience of shopping in one place.
Online retailers benefit from selling products online. For example, you can sell goods 24/7 and reach a larger audience than a physical store. However, there are several options for selling online, Like Amazon,eBay, Snapdeal, Myntra, etc. In this blog, we are going to discuss It Worth To Start An Online E-commerce Marketplace?
Difference between E-Commerce and Marketplace
In other words, marketplaces can be e-commerce websites, but not all eCommerce websites are marketplaces. Although both are used for online business purposes, there are some significant differences between E-Commerce and Marketplace. Here are some differences between E-commerce and Marketplace, you should know?
- Advertising Approach and Focusing on: It is an essential concept of your approach to marketing and your guide in the online marketplace and e-commerce business. While in eCommerce, you need to focus on targeting buyers, in the marketplace, you need to attract buyers and sellers who will be at the heart of your platform.
- Versatility: A marketplace doesn’t sell or purchase any items. This allows markets to reach economies of scale more efficiently and allows them to grow faster than eCommerce websites.
- Bigger Inventory: With eCommerce websites, the Pareto Principle means that at some point, you will have to get rid of unsold products by cutting their prices in bulk. On the other hand, in the market, if there is a product that is not for sale, you can disable it with the press of a button.
- Audience Engaged: Audience engagement is significant in an online business – whether it’s a marketplace or an e-commerce website. The market is always transaction-oriented, and the goal is to compare buyers and sellers. Getting an audience into an eCommerce business is challenging. This is time-consuming and expensive. Even after gaining some experience, you can still target the wrong people.
- Complex Navigation: The products are arranged in a complete set in the market because usually different sellers have a corresponding list of products. However, on eCommerce websites, products are sorted by category.
While each type of e-commerce and marketplace platform has its advantages. We highlight some of Marketplace benefits:
- Attract Customers
- Brand Awareness
- Increase Trust Factor
- No Technology Experience
- Easily Manage
Benefits of E-commerce
- Worldwide Reach
- All products are available on one platform
- All Products are managed in different categories
- Easily Order
Both selling on your marketplace and online store can be profitable. However, both approaches have their respective advantages and disadvantages. Selling in the marketplace will not help you build brand awareness and increase customer loyalty. Developing an online store can be expensive. Another battle is driving targeted traffic to eCommerce websites. This is all about, Is It Worth To Start An Online E-commerce Marketplace? I hope you’ll find it helpful. Please share your views in the comments.