FAQs
What is An Online Marketplace?
An online marketplace is a digital platform that connects buyers with multiple independent sellers. Rather than a single retailer selling stock, the site aggregates inventory from various third-party merchants who manage their own product listings and prices.
For consumers, this offers convenience and choice. Shoppers can compare prices, discover diverse brands, and purchase items from different sellers within a single, unified checkout experience.
For brands, the platform processes the transactions, granting immediate access to an established, high-intent audience. This allows businesses to capture sales and scale efficiently without relying solely on direct-to-consumer (D2C) acquisition channels.
What is a Marketplace?
In the digital economy, the marketplace model facilitates trade between distinct consumer and seller groups.
Unlike traditional retail, where the merchant owns the stock, a marketplace operator typically provides the infrastructure - including payment processing, audience, and security - for the exchange to occur, while taking a commission on sales.
Ecommerce Marketplace Examples
Marketplaces generally fall into two categories: global giants that offer a wide variety of products and specialised platforms that focus on specific sectors like fashion or homeware.
Additionally, social commerce platforms have also rapidly evolved into essential marketplaces, enabling brands to convert engagement directly into in-app sales.