E-Commerce Website vs. Online Marketplace – Which is the best option for you to kickstart your business?


E-Commerce Website vs. Online MarketplaceWhen you decide to kickstart an E-Commerce business, we understand there is always a dilemma between creating your own E-Commerce website or selling on the marketplace.

But fret not, you will find the best solution in this post! 

The Difference Between E-Commerce Website vs. Online Marketplace

Let me share with you the differences: 

An E-Commerce website is a platform where you can list and sell your only products. With your E-Commerce website, you can easily process orders, accept payments, manage shipping and logistics, and provide customer service.

The website will include only your products, which are placed into categories that you set. And only two parties are involved when a sale is made on an E-Commerce website, the buyer and you. 

On the other hand, the marketplace is an online shopping platform where multiple merchants sell several products (even the same products).

Buyers can buy products from different sellers and pay for them all together at checkout. When sales are made on the marketplace, there are three parties involved: the buyer, the seller, and the marketplace administrator. 

Let’s talk about selling products on Marketplaces 

The marketplace is an easier option for selling your products online, especially for beginners who have just started an online business.

Less effort is needed for the initial stage (low setup cost, low marketing cost, etc.). However, there are limitations in the marketplace, such as commission fees, competition, difficulty in building a brand, and more.

Selling on Marketplaces
Advantages Disadvantages
It is easy & convenient to get started and maintain Cut-throat competition with multiple competing brands & companies on the same site
It has ready traffic, great exposure, and tons of visitors who have already made purchases People who bought your products may never remember your business brand/name. It’s hard to build a customer list and sell to them again in the future.
Customers using the marketplace have trust in it Commission fees are required

Let’s talk about selling products on your E-Commerce website

If you’re already an established brand and don’t want to share your gains with a marketplace or require a tailor-made solution that will perfectly respond to your needs, then creating your E-Commerce store is the best solution for you.

However, it does require a larger initial investment, time, and effort to keep it going and performing well. 

Selling on Own E-Commerce Website
Advantages Disadvantages
Establish and maintain full control over your business brand, including data Initial investment and setup can be time-consuming and technical
Customers can find you online based on your business brand and buy directly Everything starts from scratch, and you have to invest time to generate visitors to your site (using paid & non-paid methods)
Personalization and retarget visitors to become regular customers—establish and maintain repeat and loyal customers The need to hire the right person for different purposes: Marketing, Sales, and Technical
**Exabytes does provide a fully managed E-Commerce service

Which is the Best for Your Business? 

That is for you to decide based on your priorities and budget. Additionally, you need to determine if your product is niche-based or general.

In short, the marketplace is a great starting point for E-Commerce beginners, where it allows you to cut down the costs, risks, and time needed upfront to create an online store. 

However, if you wish to establish your business brand and do not want to share your gains with a marketplace, you should consider creating your E-Commerce website. 

But hold on, there is another way too. Why not sell on both? 

You can list your product on the marketplace and have an E-Commerce website working for you. Exabytes E-Commerce Store allows you to build and own your E-Commerce website while enabling you to sync your products to popular marketplaces.

To learn more, contact our E-Commerce Expert, for a free consultation.