“My Etsy store gets sales, but I’m not seeing the same amount of sales on my eCommerce store yet. Why is this?”, I hear you ask. We totally understand the comparison. However, marketplaces and eCommerce platforms are not the same thing. Sure, the outcome you expect (sales) may be the same. But they are not the same animal. You have to feed them different things in order for them to be at optimum fitness level. Sure, both are online platforms and are used for buying and selling goods online. But they serve slightly different purposes.
Knowledge in their distinction is the key to your success.
What are eCommerce Platforms?
An eCommerce platform is a website or software application that facilitates the buying and selling of products or services directly between a business (seller) and a consumer (buyer).
A business that uses an eCommerce platform typically maintains control over the entire sales process. This includes inventory management, the payment methods that are accepted, order fulfillment, customer service and the overall look of your online platform.
Examples of eCommerce platforms are Shopify and freewebstore.
What are Marketplace’s in the Context of Online Platforms?
A marketplace is an online platform that connects multiple third-party sellers (businesses or individuals) with potential buyers. In a marketplace, the platform operator provides a virtual selling space for businesses, entrepreneurs and creators to list their products. Buyers can browse and purchase from multiple sellers within the same platform and sellers compete against each other in a competitive market.
In exchange for using this virtual space, the marketplace operator usually earns revenue through various means such as charging listing fees, transaction fees, or commissions on sales made through the platform. The platform operator uses some of this revenue to invest in digital marketing techniques designed to increase overall popularity of their ecosystem and thus sales for its sellers.
Examples of online marketplaces include Amazon Marketplace, eBay and Etsy.
What is the Difference Between Marketplaces and eCommerce Platforms?
eCommerce platforms v online marketplaces. What are the differences? While both eCommerce platforms and marketplaces facilitate online transactions, the key difference lies in ownership and control over the whole sales process. eCommerce platforms or websites are typically owned by a single business, creator or entrepreneur who sells its own products directly to consumers. Conversely, marketplaces act as intermediaries, connecting multiple sellers with buyers on a single platform.
Using an eCommerce platform means you have greater freedom over your marketing budget. Whereas a marketplace, through its fee structure, will specify a minimum spend on digital marketing to acquire a sale.
Investing in marketing is, of course, a wise decision. You may be of the opinion that marketplaces know how best to do this. And yes, they do invest heavily in SEO and PPC methods. However, owning your own eCommerce store gives you more freedom over your online store. You might feel this freedom allows you to focus your marketing spend on strategies that work best for you and your business model.
Of course, you can do both! Freewebstore has integrations allowing you to upload your products to marketplaces like Google Shopping, and automatically keeps your listings up to date. Get in touch with our Support Team if you need help.
Whichever you choose, eCommerce stores and Marketplaces both have their advantages and disadvantages. To help you decide, it’s wise to know the distinction so that you can implement strategies to get the very best out of them. If you’d like to learn more marketing strategies for your online store, SEO is a great place to start. Alternatively, we have lots of help to Get You Started.
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