What is a marketplace?
A platform is a business model that creates value by facilitating exchange between two or more interdependent groups, usually consumers and producers. A marketplace is actually a specific type of platform business model that focuses on facilitating exchanges between buyers and sellers.
Business operator: A marketplace allows the business operator to take a commission on items that vendors sell. This can either be in place of or in addition to the marketplaces's own products, exponentially increasing profit opportunities.
Vendor: Smaller stores without the budget or marketing capability to establish their own eCommerce website and software can also benefit from joining a marketplace. By aligning themselves with a larger, known business, these stores can gain visibility and, in some cases, utilize the marketplace’s fulfillment options.
Consumer: Marketplace customers benefit from seeing aggregated options on a single website and are empowered to find the most reasonably priced or highest quality product.