E-commerce marketplaces are like the real marketplace, where the infrastructure is built up and maintained by a single organization like government or any other funding agency and multiple merchants opens store in the market place. The merchants in the marketplace pay a certain percentage of sales or a fixed amount of sale as a fee to the market place owner. Most famous e-commerce marketplace in the world is eBay and Amazon. An exact definition of e-commerce marketplace is as follows. The e-marketplace is a virtual marketplace where buyers and suppliers meet to exchange information about product and service offers, and to negotiate and carry out business transactions (Archer and Gebauer 2000). Furthermore, in the age of the Internet and with the emergence of new information and communication technologies, the e-marketplace is a Web-based information system, where multiple suppliers and multiple buyers can undertake business transactions via the Internet.
How e-commerce market places differ from an e-commerce website?
- An e-commerce website is owned and managed by a single organization to sell their products online. But online store is a platform where different ventures can sell their products online.
- In the case of an e-commerce website all the risk like storage and maintenance of data, authentication of transactions, etc. are on the venture side, but in the case of an e-commerce marketplace all these risks will be taken care by the marketplace venture.
- For a start up online store it is very difficult to get traffics to their website unless they do some serious SEO. But in the case of an e-commerce marketplace the marketplace is already having huge number of visitors every day and your visibility will be high.
Glowstars is an ecommerce web design and development company in Dubai. Call us now at +971 0526157979 or Email: firstname.lastname@example.org