Differences in E-Commerce, Marketplace and Online Shop

“Isn’t e-commerce, marketplace, and online shop the same thing, right?” If you think like that, it means that you have come to this article correctly. Because, e-commerce, marketplace, and online shop are three different things. You must know the difference between the three if you want to be a successful online businessman. Because there are different places to sell, the marketing strategy is also different.

What is Ecommerce, Marketplace and Online Shop?

  1. E-commerce

Ecommerce (often also referred to as an online store) is a website that is used to sell products from website owners.

  1. Marketplace

Marketplace is a third party website that acts as an intermediary that connects sellers with buyers on the internet.

  1. Online shop

For Indonesian people, online shop or olshop refers more to accounts that only focus on selling on social media.

The difference between e-commerce, marketplace and online shop

  • Cost
  1. E-commerce

Spend a little money at the beginning. But it is a long term investment.

2. Marketplace

Free (except to enjoy premium features provided by the marketplace).

3. Online Shop

Free (except for using paid social media features, such as facebook ads or instagram ads)

  • Competition
  1. E-commerce

Competition with fellow websites to get first ranking in search results.

2. Marketplace

Competition in one marketplace is very tight             

3. Online Shop

Competition in one social media is very tight

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