What is E-Commerce Marketplace and how does it work?

What is E-Commerce Marketplace and how does it work - ProiDeators Media

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An ecommerce marketplace connects sellers with buyers. It is also known as an online marketplace, electronic marketplace and all the dealings are supervised by the website owners. Entrepreneurs make use of these platforms to reach a wider audience who are eagerly waiting for their product and services. It is one of the leading platforms where people can browse diverse brands of products arriving from different merchants, small shops, individual sellers that sell on the same platforms.

The best part of the Ecommerce marketplace is, it simplifies the manufacturing process through one simple doorway, where the manufacturers sell their products directly to the consumers. This helps to avoid inactive procedure of stock holdings. Such a type of management process is known as Dropshipping method.

Firms like Amazon, flipkart have experienced huge growth in the eCommerce marketplace platforms. This has proven to be the most profitable business in web e-commerce because the entire market is managed on particular software. It facilitates vendors to sell their goods and services under one roof. In terms of profits, these ecommerce firms take a certain amount of commission based on the sales process.

There are different varieties of eCommerce market place:

Buyer oriented E-commerce marketplace: This type of e-marketplace is only participated by the buyer oriented firm who makes the bulk purchase from the suppliers at affordable prices.

Supplier oriented Ecommerce marketplace: This type of market place is used by large scale suppliers where they create an efficient supply chain. This increases their visibility and acquires a number of prospective buyers.

Vertical and horizontal ecommerce marketplace: When we talk about vertical ecommerce market place it offers online access to businesses vertically across every category of different sectors that involves, automotive, textile, construction etc.  And horizontal connects buyers and sellers across diverse industries or regions and facilitates buyers to purchase indirect products such as office equipment, stationery etc.

Independent E-marketplace: This type of marketplace is considered for B2B business which can be organized online by third parties and is open to buyers and sellers across the industry. Businesses can register their companies and can acquire classified ads, different product quotations etc.

Let’s check the benefits of market place:

Benefits for Businesses: E-Commerce marketplace provides transparency about the availability of the product and stock all in one platform. It gives new opportunities to buyers and sellers to build a strong relationship across their supply chain.

Benefits for buyers: The platform helps buyers to browse and search variation in product along with comparison options on a single website. It also helps to choose the most reasonable price for the best quality product. They get updated about the product availability and prices which makes it easy for the buyers to acquire the best deals.

Benefits for Sellers: Small and mid size vendors or merchants who find it difficult to start with an online ecommerce store website can align themselves with the large businesses. It helps them to acquire more visibility and fulfill all their needs. Regular exchange of quotes between new and old sellers can be easily exchanged thus reorganizing and sustaining consistency. The ecommerce marketplace acts as an additional sales channel to advertise and sell their products. It also facilitates international trading facilities in the ecommerce marketplace.

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