The difference between e-commerce marketplaces and other e-commerce platforms
When we talk about e-commerce platforms we are talking about platforms where sellers can easily setup a store and start selling their products. These platforms are usually easy to use. Other platforms such as magneto require skilled professionals. However our main focus is going to be platforms such as Shopify, Woo-commerce, and marketplaces. In Marketplaces we will focus on the most popular marketplaces such as Amazon and Ebay.
Advantages of e-commerce marketplaces
Marketplaces have certain advantages that are enjoyed by sellers. Marketplaces are places where e-commerce sellers can sell their products to buyers online. The most common marketplace is Amazon. However the only problem with these marketplaces is that they are now flooded. There are now too many sellers on Amazon and eBay selling the same thing to customers. The main reason why people prefer these marketplaces over other e-commerce platforms is due to the large number of visitors that use these platforms. It is estimated that more than 30 percent of e-commerce sales occur on Amazon. E-commerce marketplaces are advantageous to people selling unique products that they developed on their own. This id due to the fact that price is not the only tie breaker that they need to be concerned about. Marketplaces are also advantageous to buyers in the sense that they protect them from scams.
Disadvantages of e-commerce marketplaces
There are disadvantages of using marketplaces that include competition. Marketplaces have got a certain disadvantage compared to other e-commerce platforms. First of all you cannot create a unique store on an e-commerce marketplace. There are also large brands competing with small e-commerce stores. Marketplaces are usually flooded with similar goods. This means as a seller you need to be competitive in terms of pricing. People will often be put out of business due to lower prices in the market.