Is an e-commerce Marketplace? Know the differences.

Those who are interested in developing a virtual store will probably come across the term marketplace. But, after all, is marketplace an e-commerce? To start, let's differentiate both terms.

E-Commerce (or e-commerce) is an online platform where there is single store intermediation directly with your customers. Thus, it is up to the entrepreneur to keep both the site part and the company logistics.

Already the marketplace can be compared to a large virtual shopping center. In it, a single site is responsible for having several stores, where each sells its respective product within a segment. The idea is that customers can find products from different stores in one place.

But the differences do not stop there. So, let's understand this better? Keep reading and see which is the best model for your business!

Showcase your products

Within e-commerce, in addition to building the entire structure of the site, the entrepreneur has the challenge of forming the best strategies - and investing in paid ads - to advertise his store in different social networks and thus attract more clients.

Another detail you should be aware of is the stock of your products. To maintain good traffic, your store must have a smart inventory. Since you are solely responsible for exposing the products on the platform, a lack of inventory can drive customers away.

With a marketplace, on the other hand, you do not have to worry so much about the stock because that detail is delegated to the tenants. They will put the products in their windows, being responsible for increasing the movement and, consequently, the number of sales of your platform.

Stay tuned for investment

If you are interested in setting up a virtual store of your own, make sure you have large working capital.

This concern is to ensure that your company does not get too much financially hurt early on, as you will need to take care of server hosting, database storage, and page layout.

In addition, before launching your site you must have in your store a fraud-proofing system to protect both e-commerce and customer data. Also, you need a customer service tool.

In the case of the marketplace, your concern closely resembles what was said above: website construction, security system, hosting service and page layout. On the other hand, the entrepreneur does not have to deal with the logistics or the company's stock.

As your responsibility is to maintain a safe and quality site in the air, you do not have to worry about a possible inventory problem, for example.

Integrate the marketplace into your e-commerce

If you already have a virtual store, you can integrate the modality into your business. To do this, you need the support of your development team (if you do not, hire a specialized service) to complete the task.

In this sense, a tool widely used in existing e-commerce is Magento.

It has integration plug-ins with different marketplaces, capable of automating the management between the store and its sales channels, opening up new business possibilities for the logistics. And it even allows the shopkeeper to easily choose the products that will be advertised within the platform itself.

Anyway, as we have seen, the decision to open one of the two models presented can vary greatly according to your strategy. And now, answering the question of whether a Marketplace is e-commerce: both fall into the category of e-commerce, as they make sales through an online platform.

So, did you like our post? Is there any doubt about this? Leave us your comment!

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