Difference Between Marketplace & E-commerce

Contributed by: Anonymous
August 07, 2021

Marketplace and E-commerce are both used for online business purpose, but there are some fundamental differences between these two models.

WHAT IS MARKETPLACE?

a marketplace is a website where the products offered come from multiple sellers. It is an online platform where the website owner allows third-party sellers to sell on the platform i.e., various sellers can market their products to the customers directly. The marketplace owner does not own the inventory; neither does he invoice the customer.

WHAT IS E-COMMERCE?

An e-commerce website is a single brand online store or multi-brand online store where a specific brand sells its own products on their website. The inventory is owned by the website owner & the website owner also invoices the customer. Essentially E-commerce websites are where a seller sells products to multiple customers/buyers.

The marketplace is like a shopping mall whereas E-commerce is similar to a multi-brand retail shop.

TOP 6 DIFFERENCES BETWEEN MARKETPLACE & E-COMMERCE

  1. MARKETING APPROACH:

While in e-commerce you have to focus on targeting buyers, in a marketplace you must attract not only buyers but also sellers who will be build the base of the platform. The target audience for marketplace is wide and for E-commerce the sellers need to attract their own traffic to the website.

  1. INVENTORY:

Marketplace only connects a buyer and a seller; hence the marketplace owner does not need to maintain their own inventory. But a buyer can buy products from an E-commerce platform and hence the website owner needs to maintain inventory. Maintaining & managing inventory can significantly impact the profit margins for E-commerce sites.

  1. SCALABILITY:

A marketplace doesn’t sell or buy anything. So, it takes considerably less financial risks than e-commerce websites which have to constantly invest in stock that may take time to sell or never sell at all. Marketplaces gain economies of scale more easily, and, therefore, allow them to expand faster than e-commerce websites. Marketing for marketplace is also simpler and cheaper compared to E-commerce websites.

  1. VOLUME VS. QUALITY:

Marketplace earns their money through listing fees and commission fees and hence the margin for marketplace is lower compared to E-commerce. Due to this, marketplace owners need to work on volume to stay competitive in the game. However, E-commerce sites make greater margin on each individual sale, so they don’t need to be concerned with volume, but they have to constantly cautious with maintaining the quality.

  1. TIME & MONEY:

If you are a seller and looking to get more customers for your products through online platforms, initially any marketplace may be a better option if you are looking to save time and willing to do this at a lower cost. Building your own e-commerce website will certainly going to be a time consuming and costly affair. But as marketplace platform are already ready, initial set-up is easier. Hence, time to launch your business takes lesser time in marketplace compared to e-commerce.

  1. VALUE ADDED SERVICES:

As e-commerce websites are essentially selling a product to a buyer, a lot of value-added services are involved in the process. Major support is from logistics services. Logistics is an integral part of the e-commerce dynamics and hence many e-commerce owners choose to launch their own logistics services. However, as marketplace only connect a buyer and a seller, they don’t need to be concerned about such value-added service providers.

Copyright © 2023 AlCircleBiz All Rights Reserved.

  • worldpay

'Most searched' on AlCircleBiz

Raw Materials and Consumables:

Magnesite | Fluorspar | Propeller Scrap | Tin Brass Scrap | Gun Metal Scrap | Honey Brass Scrap | Silicon Metal 2202 | Silicon Metal 3303 | Silicon Metal 421 | Silicon metal 441 | Silicon metal 553 | Silicon Metal | Silicon metal 553 | Silicon metal 441 | Silicon metal 3303

Primary Aluminium:

Aluminium Ingots | Aluminium Scrap | Aluminium Ingot | Aluminium Alloy Ingot | Copper Billets | Aluminium Billets | ADC12 Ingot | Primary Aluminium Ingots

Machinery and Equipment:

Heat Sink | Dust Suppression & Control System | Alumina / Fly Ash / Lime Tanker | Y81-200 Metal Baler | Q91Y-360 Guillotine shear | Anode Transfer Vehicle - ATV | Crushed Bath Tanker

Aluminium Products:

Aluminium Scrap 6063 | 3004 Aluminium Foil | Aluminium powder | House on Wheels Interior | Radiator Door | Aluminium Caul Board | Aluminium Coil | Aluminium Corrugated Sheet | Aluminium Chequered Sheets | Aluminium Sheets | Aluminium Scrap 97 Purity

End User:

Screw Module Series | Aluminium Die- Casting | Aluminium Medical Equipment Profile | Led Aluminium Profile | Mobile frame series | Electronic Series | Chamber series | Bike Accessories | Aluminium Tope | Aluminium Circle | Aluminium Extrusion | Standard Geometric Profiles

Utility and Services:

Logistics Services | Equipment Assessment Service | Material Audits & Valuation Service | Remelting of Aluminium Scrap Service | Cable Recycling Service | Warehousing and Distribution Service | Sea Freight Service

Surplus Products:

Chlorine Supply Unit | Aluminium Extrusion Plant | MCT 160 Horizontal Double Spindle Machining Center

Aluminium Buying Leads:

Aluminium Ingot | Aluminium Ingot A7 | Aluminium Scrap 6063 | Low Purity Secondary aluminium Ingot

Aluminium Selling Leads:

Chlorine Supply Unit | Aluminum Cables | Aluminium ADC12 Ingots | High Quality Aluminium Extrusion Profiles

Sellers:

Hindalco Brasil | RIA Cast House Engineering | Prodigo Metals Recovery | Ceraflux India Pvt. Ltd. | Madina Metal | Hensfate Metal | Automation Innovation | Teeba Metals Trading LLC

AlCircleBiz: CONNECTING BUSINESS - IN THE GLOBAL ALUMINIUM INDUSTRY

Founded in 2019 and based out of Singapore, AlCircleBiz is the world's 1st online B2B marketplace for the global aluminium industry, connecting businesses. One of the biggest USPs of AlCircleBiz is – it covers the entire aluminium value chain i.e., from - raw materials and consumables, primary aluminium, equipment, aluminium products, scrap, technology, service providers – bringing everything under one roof.

When you register on AlCircleBiz, you can post business leads, get to explore all listed products and services and can send enquiries directly to the sellers. When you onboard as a registered seller, you can list unlimited products/services to get new customers & grow your business in the domestic as well as international aluminium industry.

BUY/SEND ENQUIRY FROM AlCircleBiz

Raw Materials and Consumables

Find quality & verified aluminium raw materials and consumables suppliers, manufacturers, exporters, importers and buyers around the world. Get contact details and address of companies & reach out to them through online enquiries. From Propeller Scrap, Tin Brass Scrap, Gun Metal Scrap, Honey Brass Scrap, Silicon Metal 3303 and more. Discover sellers like Xiamen JCX Import And Export Co.Ltd, Al-Azeem Enterprises, Madina Metal and more.

Primary Aluminium

Find Primary aluminium manufacturers and suppliers. Choose reliable and genuine primary aluminium manufacturers, suppliers, exporters at AlCircleBiz. Aluminium Ingot, Billet, Alloy Bar latest price from sellers like RADIANTA ALLOYS PVT. LTD., Shayona Impex, Silver Rush Exim and more.

Machinery and Equipment

Find quality aluminium machinery and equipment, suppliers, manufacturers, exporters, importers and buyers around the world. Send enquiries on aluminium machinery and equipment products to get price quotes and other information.

Aluminium Products

Find quality & verified aluminium products suppliers, manufacturers, exporters, importers and buyers around the world. Latest price on aluminium products. Get contact details and address of companies manufacturing and supplying aluminium products.

End User

Find quality aluminium end user product suppliers, manufacturers, exporters, importers and buyers around the world. Get contact details and address of companies manufacturing and supplying aluminium end user products.

Utility and Services

Find all different kinds of aluminium utility and services providers around the world at AlCircleBiz. Get contact details and address of companies providing utility and services for the aluminium industry.

Surplus Products

SURPLUS, a unique feature of AlCircleBiz, to help you sell any unused assets, with customized and dedicated marketing to attract immediate customer needs. If you have any unused product, raw materials, scrap or used equipment or machinery and you want to sell it off, then you can get verified enquiries from potential customers by availing this SURPLUS feature.

Aluminium Business Leads

Both sellers and buyers can post business leads for any specific requirements & can choose to respond to other active business leads.

Post Buying and Selling leads at AlCircleBiz is easy, fast & super affordable! We follow an authentic online method of reaching a niche audience and once you have posted a lead, you can get an unlimited number of responses against your lead. These business leads cover the entire aluminium value chain that includes Raw Materials and Consumables, Primary Aluminium, Machinery and Equipment, Aluminium Products, End User, Utility and Services and Surplus Products.

AUTHENTICITY

The in-house team of experts at AlCircleBiz is trained to check and verify the authenticity of online presence of all their registered sellers and business leads, hence you get a list of reliable product suppliers and only verified leads.

SERVICES AND PRICING

Registration on AlCircleBiz is FREE. With Registration, you get the following benefits -
- Explore AlCircleBiz platform to get connected with global sellers and buyers
- Check out all products/services & send unlimited enquiries directly to the sellers
- Post unlimited buying and selling requirements as Business Leads
- Get responses from potential customers against your posted Lead (First 10 responses in one year are free)
- Check out other active Business Leads and respond directly to the clients at No Cost - Unlimited Responses

If you onboard yourself as a registered seller for FREE, you get the following additional benefits
- Get free company profile page on AlCircleBiz website
- List unlimited number of products/services
- Get enquiries directly in your Inbox from potential clients (First 10 enquiries in one year are free)

We also have many paid offerings - like MyBiz, Surplus, Advertisement Solutions etc.

Visit us at: www.alcirclebiz.com

Top
Logo

Global marketplace for the
entire aluminium value chain.

f