MarketingMarketplace: Learn all about this sales model

Marketplace: Learn all about this sales model


Do you know what the marketplace is? We’ve made an article with everything you need to know about this internet sales model. Know more!

Like e-commerce, the marketplace is an alternative that is on the rise at the moment when the challenge involves online sales.

 The translation of the term marketplace involves two words: market and place. In summary, the marketplace is a platform that connects sellers and customers who meet in a kind of virtual mall to make transactions for products and services.

If, before the accelerated digital transformations in the pandemic context, the marketplace was already a promising alternative for entrepreneurs, it is currently indispensable and very attractive since to start selling, it is not necessary to have such a high initial investment.

Do you want to know what are the advantages and differentials of the marketplace, the differences between this sales model and traditional e-commerce, as well as tips on how to start using this platform to make your sales online? This article is for you. Keep reading and learn the most relevant points involving this subject!

What is a marketplace?

What is marketplace anyway? Despite the similarities with online stores, the marketplace is not e-commerce (we’ll explain the differences between the two business models later on).

Essentially, the marketplace is a virtual space where people can offer services and products and connect with their customers. In other words, the marketplace is basically a big fair where several sellers and customers do business, but everything happens on the internet.

An example of a famous marketplace is Mercado Livre — the most valuable company in Latin America (valued at US$60,664 billion), according to a survey by Economática published in Valor Econômico.

In addition to the Free Market, there are other brands consolidated in the market that have also joined this great virtual mall to expand the business world virtually. Are they:

  • Shopee;
  • Amazon;
  • OLX;
  • Netshoes.

Another interesting example is the Facebook marketplace itself, which works as a classified space, in which people who are registered on the network can advertise, include product descriptions and even insert buttons and hyperlinks that direct potential customers to a conversation on WhatsApp or sales website.

How does the marketplace work?

The first step in using this sales model is to register on the desired platform and build a profile of your business. 

Generally, the registration is analyzed by the space administrator and after this process it is possible to register the products, insert descriptions, values, payment method and negotiate. 

There are very different profiles for marketplaces, but an unmistakable feature of this business model is that the marketplace works like a large online shopping mall, as customers access the site and can check out many stores at the same time, without leaving their home .

What are the differences between marketplace and e-commerce?

Many people think that the marketplace and e-commerce are the same thing and it’s perfectly natural to confuse the concepts. Both are virtual business models for the purpose of promoting virtual commerce. However, it is important to emphasize that marketplace and e-commerce are not the same thing. Understand:

The marketplace is a space that houses several companies, e-commerce is targeted

When accessing a company’s virtual store, you won’t have to compete for space with the competition. After all, e-commerce has only one owner. The marketplace, on the other hand, works as a market that can house several online stores, from different sellers.

In other words, the marketplace is a much broader platform, with several transaction possibilities. In fact, it is very common for customers to find the same products at different prices if they do a search with more than one seller. This is great for consumers and challenging for sellers who advertise their products and services.

Marketplace logistics changes

In a traditional online store, the owner (a) is responsible for managing all the stock of their goods. On the marketplace, that changes. The platform works as a channel to promote the products and services of several companies.

In practice, the entrepreneur advertises the product and the marketplace registers sales, receives a percentage and transfers the value to the brands. The logistical operation is much more practical in this way since the people who sell are concerned with a part of the process and are responsible for sending the product, but in return they already have a structure ready to sell.

You can start using the marketplace even without having a website

Investing in internet sales is a prerequisite for any business that wants to prosper today.

A study carried out by PayPal reveals that in 2020 alone, there was an increase of more than 40% in the number of stores that only work on the internet. There are several factors influencing this new moment and the covid-19 global health crisis is one of them.

As a result, many people who are selling online are still adapting to the changes. A very strong feature of the marketplace is the democratic format since, unlike traditional e-commerce, merchants can start selling even without having a website at first. Just register on the platform.

Is it worth having a marketplace?

Now that you know what a marketplace is and how it differs from 

e-commerce, you probably have some doubts about the advantages and disadvantages of betting on this solution. 

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