Marketplace

What is Marketplace?

A marketplace in e-commerce is an online platform where products from multiple sellers are available. Brands, manufacturers, and merchants usually congregate in a marketplace. Websites like these require minimal marketing from the seller’s end, and they can also negate the need for a dedicated website to showcase products. 

Significance of Marketplace in an E-commerce Shipping and Delivery

An e-commerce marketplace is the meeting point of sellers and buyers. Such platforms are highly beneficial to retailers who want to skip the requirement of having a website and avoid spending heavily on marketing.

  • Low-cost starting point: Enlisting as a vendor in a marketplace is the least investment-consuming start a seller can undertake. As the requirement for having a website with all the optimized APIs is negated, a seller can save a considerable upfront cost. Furthermore, minimum advertising spending is required in the long run. 
  • Easy setup: A seller must only create an account and list their products. Anyone can set up a seller account in a marketplace within a few hours. 

Prerequisites of Marketplace and How It Works

The prerequisite to enlisting oneself as a seller in a specific marketplace is to have products. Adding a few case studies to the mix might increase the chances of getting more sales. Furthermore, a marketplace works in the following ways:

  • Receiving orders: Once an account has been created, one must wait for an order. As an order gets placed, the seller is notified accordingly.
  • Packing and disbursal: Most marketplaces have pre-built shipping plugins. Therefore, a seller must place a delivery request, pack, and disburse the order.

Use Case with Marketplace

Some use case with an e-commerce marketplace is listed below.

  • A Filipino garment manufacturer creating a seller’s account in Lazada, Philippines.
  • A cosmetic drop shipper enlists himself as a seller on Shopee, Thailand.
  • An offline watch retailer creates a merchant account in Shopify, Australia.

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