E-Commerce VS Online Marketplace: What is Best For You?

by Webindia Master Digital Marketing Company

Are you a seller? If you are, how do you choose on which platforms you want to launch your products online? Between E-commerce and Online Marketplace, which one is best for you? Do you know how they differ?

If you're unsure about any of the questions that we asked above, then you're just in the right place! 

Being a leading Ecommerce Website Development Company in India, we will help you answer all these questions. We're confident that after reading this article, you will easily be able to make the right decision for your business.

So, let's get started!


An E-commerce website or store is the place where a seller sells their items to numerous customers. Just two gatherings are engaged in this interaction – the seller and the purchaser.

E.g., the online Apple store.


An online marketplace is a site where items from different merchants are sold in one spot. Assortment in items sold is one of the significant attractions for clients. This is like a shopping centre yet in a web-based space.

Some of the top online marketplaces in India are Amazon, Flipkart, Myntra, Snapdeal, etc.


Now, let’s discuss the top 5 differences between an E-commerce website and an online marketplace website.

  1. Investment

While launching an e-commerce website you will need more investment as you will be the one managing stock and invoices. Also, you will need to invest in having a user-friendly digital marketing website beforehand.

Whereas, while launching an online marketplace, the investment will be less in managing the stocks and invoices as vendors will be the ones managing that. But you will need higher investment in launching an online marketplace website as compared to an e-commerce site because you will have to provide a high user experience so that vendors and customers can easily interact, navigate and utilise the website. 

  1. Cash Flow

According to the best Ecommerce Website Development Delhi, in an e-commerce website, since you will have to invest more initially, so, it will take a while before you have a positive cash flow.

Whereas, in an online marketplace, you will earn with every single transaction happening on the site, so, cash flow will be much higher in this case.

  1. Targeting and Marketing Approach

In an e-commerce website, you will just have to focus on targeted buyers. You will be spending more to drive traffic to your website. However, the selection process is simpler because the buyer will be selecting products from a single company.

Whereas, in an online marketplace, you will not only be focusing on buyers but sellers too. Unlike, an e-commerce website, here you will be benefitting from various users operating on your site. All the vendors will be individually advertising their products, thereby spreading awareness of your site as well. The better the user experience of the buyers will be, the more likely they will influence your online marketplace.

  1. Engaged Audience

In an online marketplace, the goal is to move buyers towards sellers and vice versa. Here, the focus is also on attracting buyers towards more purchases and sellers towards selling more products on the platform. This way, online marketplaces are transaction-oriented and benefit from a more engaging and trustable network between buyers and sellers.

Whereas, in an e-commerce site, engaging with the audience is comparatively harder. Even after you've gained experience and spent a considerable amount of time online, you might still be targeting the wrong audience. However, social media can play a great role in engaging with the audience.

  1. Trust

According to the best Ecommerce Website Development Delhi, trust is an important factor to sell online for both e-commerce and online marketplaces.

In an online marketplace, customers are likely to trust the marketplace even if they are unaware of the seller. And if they have had a good experience, it will help in building trust and that they might come back to buy again.

Whereas in an e-commerce website, it's quite challenging to build trust as it is run by a single company and if the user experience isn't good, the customers are not likely to come back.


The best place to sell online depends upon the vendor's products, needs and goals. Both, an e-commerce platform and online marketplace have their fair share of gains and hurdles, especially when it comes to website development and marketing.

So, before you start either of the platforms online, we'd suggest you hire the best Ecommerce Website Development, for effective results.

Our team of experts is here to help you build a stellar marketing website that will get your business to amazing heights.

Contact us today!

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About Webindia Master Advanced   Digital Marketing Company

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Joined APSense since, October 17th, 2020, From Noida, India.

Created on Oct 12th 2021 00:32. Viewed 109 times.


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