What are the benefits of marketplace E-commerce?

benefits of marketplace E-commerce

Benefits of marketplace e-commerce: Considering e-commerce marketplace growth and areas yet untapped by this technologies, entrepreneurs can leverage the marketplace business model and build their own unique solutions. Below are some key benefits of running your own marketplace of e-commerce.

benefits of marketplace e-commerce

Business Benefits

A marketplace allows the business or podium operators to charge a cut on the products that the multi vendor sell therefore exponentially increasing the profits opportunities.

The way marketplace owners derive revenue determines the success of their podium. The most popular monetization models are commissions, listing fees, subscriptions, lead generation fees, advertising, and providing additional services.

You can use a combination of several monetization schemes, but it’s best to implement just one when you’re starting out.

Better chance for suppliers and buyers to establish new trading relationship either within or across their supply chain. Time constraints for trading across geographies is eliminated because of the online podium which operates round the clock.

Also Read: Why we need eCommerce online store?

Benefits for Buyers

The buyers get a wide variety of options on products to compare on a single website. Thus helping them find the most reasonable cost for the best quality product.

The cost of releasing marketplace application is almost the same as the cost of launching an e-commerce script.

A marketplace requires less financial risk than an e-commerce store as it doesn’t need to invest in inventory.

Real time updated information on the cost and availability makes it easier for the buyer to get the best deal.

The buyers can find trusted established vendors and build a trading partnership by dealing exclusively with them.

Benefits for Sellers

Smaller stores or vendors who are not sure about establishing their own E-Commerce script or want to reduce their marketing costs can align themselves with these larger business and gain visibility through their contentment options.

A marketplace’s primary source of revenue is usually commission that it receive from sales.

Suppliers can create a sort of business card with ratings providers as well as consumer reviews so consumers can make informed decisions.

The podium acts as an additional sales channel to market and sell their products.

Enables oversea sales by providing opportunities to trade in the international e-marketplace.

Also Read: Why we need to integrate Ebay with our eCommerce site?


Marketplace owners can track their sales with exact metrics. For example, an owner can see which products and services are in demand and know which vendors are most preferred. As a result, the owner can promote goods and services that truly matter to its users.

Recent Posts