There are still many people who do not clearly understand the difference between e-commerce and marketplaces . In fact, these two types of platforms are both carried out online and are often confused with an online shop, even though the three have significant differences.
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To clarify an understanding of what the difference between e-commerce and marketplace is , this article will explain it in detail. Here are the reviews:
Difference between E-Commerce and Marketplace
Definition of E-Commerce
In simple terms, e-commerce is a website that sells goods or services to prospective buyers. In an e-commerce website, you will not find many online shops because this website is exclusively created and maintained by a brand.
In other words, a brand has its own website to promote and sell the products it has. E-commerce does not provide space for other brands on their website unless they have entered into a merger or partnership.
Also read: Understanding E-Commerce and Its Development in Indonesia
To build a good promotional website, e-commerce owners must recruit staff who are website developers to manage their website. This staff will post pictures of your products to keep them attractive when promoted on the website. Besides needing a web developer, you also need customer support, as well as an SEO content writer to help write product copy and articles.
To make transactions, e-commerce websites will usually direct buyers to choose the desired product and then put it in a shopping cart or shopping bag that is already available.
The payment process is also carried out online on the same website as the payment gateway system . Usually e-commerce already has cooperation with financial institutions such as banks to process all payment transactions.
Apart from the advantages in terms of branding and ownership, building E-commerce also requires web hosting rental fees and a domain name . However, don’t worry, there are many companies in Indonesia that provide cheap hosting packages for middle-class e-commerce.
Marketplace is a market in cyberspace, where buyers buy and sell transactions with sellers. The concept is the same as a traditional market, the only difference is the place. Traditional markets can be seen physically, while the marketplace is done online.
Marketplace or online marketplace houses thousands of online shops that join them. You only need to create an account in one of the marketplaces, then you can immediately promote the product you want to sell.
Also read: What is Marketplace? This is the complete explanation
One of the advantages of using a marketplace over traditional markets is that sellers do not have to pay rent to service site providers. This is of course very attractive, especially for sellers who have minimal capital.
Even so, the marketplace can still benefit from premium advertising services.
Marketplace visitors who want to buy an item only need to visit the marketplace site they want. All transactions are made online from ordering to payment. You just have to wait for your item to be delivered to your address by the seller.
One of the first and largest marketplaces in the world is Ebay, which was founded in 1995. Since the release of its website, Ebay has accommodated tens of thousands to millions of online stores around the world. The development of Ebay is considered to have made the process of buying and selling via the internet easier.
Meanwhile in Indonesia, the most popular and widely used marketplaces are Tokopedia, Bukalapak, Shopee and Olx.
Difference between E-Commerce and Marketplace
After knowing the definitions of e-commerce and marketplace, we will now review the basic differences between these two types of business. Here are the differences:
For e-commerce, the type of product being sold is a personal product of a brand. Even though this brand issues many types of products such as clothes, shoes, hats and so on, the brand name used remains the same.
As for the marketplace, the products sold come from various brands provided by online stores. In other words, a marketplace is a website that accommodates thousands of online stores that sell goods and services. One online store can sell dozens of brands.
- Technical Factors
As explained earlier, that e-commerce websites are created and managed by an expert staff in the field of website developers. Not everyone can manage a website so that it still has an attractive appearance and is able to attract buyers.
Whereas in the marketplace, sellers are provided with a platform to post everything about your online store. Starting from pictures and product descriptions, how to order to payment. You as a seller don’t have to bother thinking about the appearance of your online store.
- Communication Media
To communicate with potential buyers, e-commerce owners usually have provided a message or email feature on their website. You don’t need to bother to record the Whatsapp number belonging to the e-commerce.
As for the marketplace, the communication media used are the message features provided by the marketplace. Not a few sellers or online stores write their phone numbers on the marketplace. This facilitates the communication process between the two parties.
- Payment Process
To make payments for e-commerce transactions, you will usually be asked to make transfers via ATM or internet banking. If the e-commerce you use comes from abroad, they usually only accept payments via credit card or Paypal.
As for the payment process in the marketplace, the marketplace will act as an intermediary for payments from buyers to sellers. After the buyer makes a transfer to the marketplace, the marketplace will forward the payment to the online store that you choose.
Hopefully this review of the differences between e-commerce and marketplace can provide new knowledge for you. If you are currently interested in building an e-commerce website as a sales platform, it is highly recommended to take advantage of the Business Cloud Hosting service from Qwords.com . The reason is, besides being equipped with a large storage capacity, the BCH package is also equipped with current technology, so that your online shop website will be faster when accessed by customers.
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