What Is a Marketplace? Definition, Benefits, and Examples

Marketplace is a platform where various sellers or merchants can sell their products to consumers directly. Meanwhile, e-commerce refers to an online store owned and operated by one company or business owner.

To answer questions about what is a marketplace, its benefits, examples, and differences between e-commerce and marketplace, see the following explanation!

What Is Marketplace?

Marketplace is an online buying and selling platform that connects sellers and buyers to transact without the need for direct interaction.

Marketplace companies act as facilitators, providing a platform for sellers to offer their products or services to buyers. Thus, buyers can easily search and see various products available on the marketplace platform.

The profit obtained for the marketplace company comes from the commission of every transaction that occurs on the platform.

Currently, buyers can access the marketplace platform through websites and applications. When the buyer is interested in buying a product, the marketplace will manage the entire transaction process, from payment to delivery of goods to directly into the buyer's hands.

Simply put, the marketplace is an online buying and selling platform that is easy, safe, and efficient for sellers and buyers.

If you are a digital business person, then understanding what is a marketplace, its benefits, and its strategies are the first steps to reaching a wider range of consumers.

Marketplace Benefits

Many people tend to choose marketplaces to shop online because of their efficiency, various attractive offers (such as promos and discounts), and a wide selection of products.

After knowing what a marketplace is, you may be wondering if businesses really should take advantage of this platform.

In order not to make the wrong decision, see the benefits that you can get from maximizing sales through the following marketplace.

1. Reaching More Consumers

After listening to the previous discussion about what is a marketplace, you must already have an idea that the marketplace offers a great opportunity to reach new consumers.

Generally, consumers explore various stores in the marketplace before deciding to buy.

This means that you can make it an opportunity to compete with other stores and attract consumer buying interest.

However, to compete, make sure you have displayed interesting product photos to increase purchase interest.

2. Increasing Consumer Trust

The next benefit of the marketplace is to increase consumer trust. When consumers believe in a certain marketplace, they will also believe more in the products and sellers in it.

Consumers prefer to find the products they need through trusted platforms rather than buying on websites they have never tried.

Trusted marketplaces have usually built a reputation as a safe and convenient platform for shopping.

One of the most crucial factors that build consumer trust is good quality control applied by the marketplace to all vendors by providing a guarantee of security and satisfaction for consumers.

3. Increase Brand Awareness

In addition to understanding the concept of what is a marketplace, you also need to learn the available features to maximize sales. One of the features is search.

The search feature allows consumers to find the products they are looking for easily. The use of the right keywords in your product title, description, and tag is very important to increase product visibility in search results.

The more relevant the keywords used with your product, the more likely the product is to be found by potential customers to buy.

In addition to entering keywords in the product, you can also use advertising features in the marketplace to target the right consumers. Ads allow you to display products on the search results page for relevant keywords.

This strategy is very beneficial for new small business owners. By using the right keywords and advertising features, your product has a greater chance of being found by new consumers.

Difference Between E-Commerce and Marketplace

After learning about what a marketplace is, you need to know what is the difference from e-commerce.

Many people think that e-commerce with marketplace are the same two concepts. However, in fact, the marketplace is only one part of e-commerce.

E-commerce or electronic commerce, is a modern online buying and selling system that utilizes the Internet as a transaction medium.

You can access various needs, ranging from food, music, books, household products, plane tickets, and investments easily through e-commerce.

E-commerce can be done through various means, such as television, telephone, and the internet. Simply put, e-commerce includes the distribution, sale, purchase, and marketing of goods or services through electronic systems.

Here are some differences between e-commerce and the marketplace that you need to know.

1. Definition

What is marketplace? As previously explained, a marketplace is an online buying and selling platform that provides various products from various sellers or sellers.

Meanwhile, e-commerce is a website created by one seller to sell its own products. Consumers can only find products from the seller on the e-commerce website.

2. Cost

The difference between e-commerce and the next marketplace is in terms of operational costs. Sellers can save more costs by selling in the marketplace.

Marketplace is a ready-to-use platform and infrastructure so that sellers do not need to build and maintain their websites.

Unlike the marketplace, e-commerce requires greater operational costs. The reason is, that sellers must build and maintain their website, as well as handle technical aspects such as hosting, security, design, and others.

3. Parties Involved

After exploring what a marketplace is, you may have caught a little difference between e-commerce and marketplace. One of the main ones lies in the number of parties involved.

Generally, the marketplace involves three main parties, namely administrators, vendors, and buyers. Administrators are responsible for managing the platform, the vendor is the seller who offers the product, and the buyer is the consumer who buys the product.

Meanwhile, in e-commerce, there are only two parties involved, namely sellers and buyers. Sellers in e-commerce must handle all aspects on their own, such as marketing, customer service, and logistics.

4. Marketing

In terms of marketing, sellers in the marketplace can reach a wider audience. Some platforms already have a large user base and are familiar with big promos, for example, promo 12.12.

Sellers in the marketplace can use marketing strategies that are similar to the platform, such as participating in big promos, offering discounts and cashback, and taking advantage of the advertising features provided by the platform.

While in e-commerce, a more comprehensive marketing strategy is needed. In addition to promoting products and brands, sellers in e-commerce must also promote the e-commerce site itself.

5 Effective Ways to Sell in the Marketplace

Knowing what definition is a marketplace is an important foundation before you jump into the field as the competition in the marketplace is very tight.

Many online stores offer similar products so the opportunity to develop becomes more difficult.

However, don't worry! Here are 5 effective ways to sell in the marketplace to increase sales.

1. Complete the Store Profile

In addition to understanding the understanding of what a marketplace is, you need to know how to sell in an effective marketplace to attract customers. You can complete the store profile as the first step to selling.

Complete information such as store name, profile photo, store description, website link or social media, and operating hours will make your store look professional and active. This can increase consumer confidence to transact.

2. Make Product Descriptions and Photos

After completing the store profile, the next step to increase sales is to create interesting product descriptions and photos.

A complete and clear product description will help potential buyers to understand the products you are selling. Make sure to include information such as product specifications, colors, sizes, materials, stock, and superior features.

Incomplete product information and less attractive product photos can make prospective buyers hesitate to buy your product. They may turn to another store that has more complete product information and photos.

3. Providing Delivery Service Options

The large selection of delivery services provided in a store will give customers the freedom to determine the time of receipt of goods according to their preferences.

Providing a variety of delivery service options will increase customer flexibility when shopping. Customer satisfaction also increases and increases the opportunity to convert.

4. Promoting stalls and products

Understanding what the term marketplace is is an important part, but to achieve optimal sales, you need to promote stalls and products effectively.

Marketplace provides various advertising features that you can use to reach more users. These features allow sellers to target ads to potential buyers.

If you want to save more costs, you can promote stalls and products for free through the feed marketplace.

5. Provide Various Payment Method Options

The next way to sell in the marketplace is to provide various payment options. Prospective buyers will be more interested in buying your product if they can choose a payment method that suits their needs.

Usually, the payment methods offered, start from bank transfer, e-wallet, credit card, payment via minimarket, to Cash on Delivery (COD/on-site payment).

When you explore the knowledge of what a marketplace is, you will find the fact that the marketplace offers a high level of security in its payment methods.

Incoming payments will be accommodated by the marketplace as a third party so that customers do not have to worry about the risk of fraud.

Examples of Popular Marketplaces in Indonesia

After knowing about what is a marketplace and its benefits, you need to know various examples of marketplace platforms that are often used by the people of Indonesia.

Some examples of marketplaces are as follow:

• Tokopedia: First operated in 2009 and managed to get the status of a unicorn startup. The most sought-after items on Tokopedia, include electronics, fashion, and food.
• Shopee: One of the platforms with the most users in Indonesia since 2015. The main commodities that are most sought after are fashion and beauty products.
• Lazada: A marketplace platform under the auspices of the Alibaba group that offers quite affordable prices for the people of Indonesia.
• Blibli: A platform that offers a variety of products, including electronics or smartphones.
• Bukalapak: One of the pioneers of the marketplace in Indonesia which was established in 2010. This platform offers a wide range of products, ranging from electronics, fashion, and household needs, to digital products.
   

Conclusion

After listening to the discussion about what is a marketplace and its differences with e-commerce, you can more easily determine the platform that best suits your business needs.

In addition to applying some of the tips above, you can reach more potential customers by optimizing the website marketplace in the Google search engine.

By using an SEO strategy for the marketplace, you can increase online sales significantly. If you need professional help related to SEO needs, you can try SEO Service by cmlabs or contact Our Marketing Team right now and get the best offer!