In the current business scenario, people have started owning an online store whether in the marketplace or getting their own eCommerce website, even before opening a physical store. Could it be said marketplace is the replacement for the eCommerce website? Absolutely not. The line separating them is very thin; still, the difference makes them unique. Simply put, the eCommerce website is a single (individual) store, whereas marketplace is a shopping complex with several stores of multi-vendors selling varied products.
Before deciding which one is suitable for your business, it is very important to understand the basics of an eCommerce website as well as of marketplace. The marketplace would be the best option for you if your intention is to promote sales. On the other hand, if you prefer to brand your products, you are advised to go for an eCommerce website. Once your brand has reached the audience, you can even adopt the marketplace for better sales and getting a global reach.
Even the respective supply chains of these online stores vary. While using your own website, you have to maintain stocks, do shipping, and spend much for business promotions as well as on digital marketing. Unlike an eCommerce website, the marketplace does not hold stock, instead it allows the suppliers or the third-party vendors to sell and ship their products directly to the customers by getting a commission on every product sold on their platform.
Based on your business preferences and objectives, you have to select the best one to explore the online business world. If yours is a start-up, it would be better adhere to the marketplace where you do not have to invest much for implementation or sales promotion. All you need to do is to pay the marketplace operator a small amount as a commission for every sale you do on their online marketplace. Obviously, an eCommerce website will work and bring better returns if properly invested and promoted.