Although they are terms that are often confused, there are some very relevant differences in them and that it is necessary to clarify for a correct understanding. In addition, this linguistic differentiation will be of particular importance for people who are going to undertake a business model based on electronic commerce.
So that from now on these words can be distinguished within what digital marketing is, we are going to expose some of the divergences they have. But also some common points of these two concepts that have become fashionable in recent years in the digital marketing sector.
The first basic difference resides in the fact of the contribution of its contents. Because while ecommerce or electronic commerce is basically the website of a digital business line. In the Marketplace we are referring first of all to an activity that shows the products that are marketed, as it is translated into English.
Differences between ecommerce and Marketplace: different concepts
From this premise it is easy to understand that when we refer to an electronic commerce we are linking to a domain from where we can market our products, articles or services. Whatever its nature and origin. With the incorporation of the following characteristics that we expose you below:
In no case does it offer a real physical space. But on the contrary, it is necessary the presence of an operator who is in charge of updating the contents, modifying the conditions in sales or even designing the contents on the web platform.
- Global reach. The penetration in its commercialization has no limits and can reach any destination that you propose. Through a purchasing process that is much simpler than through traditional or conventional channels.
- Client access. Of course, the user profile to which these contents are directed is significantly that of physical stores. Where a greater link with new technologies prevails, adaptation to new shopping habits and, of course, Internet accessibility.
Contributions that are given in the Marketplace
The Marketplace, on the contrary, is a site where products or articles are offered by their marketers with the main objective of being bought or purchased by consumers. This is a small nuance that can be distinguished with the concept of a digital store. So that you understand it more easily: it is a market applied to the digital format.
These concepts encompass a system in the commercial strategies to be used significantly different. It is worth taking it into account and detecting them from now on. Where you must assess that the Marketplace can be assimilated with a virtual store, but where you can find different products or content. Unlike ecommerce where only the services or products of your digital commerce, not of others.
Under this commercial approach there is a more global strategy that can influence that small and medium-sized entrepreneurs choose to sell their products through the Marketplace. To the point that the operation can be more profitable and also generate greater visibility in the positioning in the network. Generally in small businesses that require more powerful marketing supports with the desire to reach a greater number of customers or users.
Marketplace classes that may exist in the market
There are several formats that are included in two models for their positioning and which are the following:
- Order generator: being the final responsible for your traffic, orders and billing.
- Lead generator: is responsible for carrying out the process in a comprehensive way and until the order is closed.
You can choose one of them based on the objectives that you have set for yourself in your professional project. Neither is better or worse than the other, but on the contrary they depend on what is your personal strategy in digital commerce. Something that it will not always coincide in all entrepreneurs. Not much less. For this reason, you should analyze the level of penetration of these two formats in the digital business. So that from now on you are in a position to make your possible sales more profitable.
What are the main features of the Marketplace?
There is no doubt that this professional format provides its own characteristics so that you can distinguish it from ecommerce with some ease. Do you want to know some of the most relevant? Well, pay a little attention in case you need this information in the coming years. Counting on the following features in its operation.
- Greater digital positioning: through a more active presence in more and better channels it is possible to reinforce business strategies in the so-called digital commerce.
- Build more trust among buyers: it is another of the objectives that you achieve as a result of the processes adopted from this figure in digital marketing.
- Offers greater comfortd: despite what is usually thought at first, sales do not suffer in its application. But on the contrary, they are reinforced with special excellence due to the storage management plans that are provided from the marketplaces themselves.
Classes of trading strategies to use
In any case, if at this point your real intention is to opt for this digital strategy model, you will have no choice but to analyze in depth the types that exist at the moment. Can give you the starting point to increase the sale of products or services that you offer abroad. From different commercial approaches that may be the ones that we list below, encompassed in the formats most accepted by parents of small and medium investors.
Decentralized formats: they are the ones that will allow you from now on to sell and buy any kind of products, but without the presence of intermediaries. That is, you will enjoy more autonomy in the lines of action in exchange for limiting the aid that can be obtained through third parties or other companies of these characteristics. This is a highly recommended model for emerging digital market niches or at least with less diffusion through technological channels.
Models based on customer demand. There is no doubt that it is the most common among entrepreneurs. Its reason is because it is based on customer demand. And for which a series of networks is being developed between providers that aim to satisfy these demands. You may not know it right now, but many exceptionally successful digital companies started out this way. For example, Deliveroo, as one of the most representative in digital commerce.
Construction of community networks: it is one of the most complex to put into practice, but highly effective in achieving the goals set from the beginning. This system lies in the development of different agents in the sales process. Where each of them has its own dedication and functions to develop. That is, the closest thing to a community in interests. But whose goal is to improve purchases or sales, depending on each case.
Two concepts that can complement each other
As you have seen up to now, there are many differences that you can find between ecommerce and Marketplace. Of course, many more than you might have guessed at the beginning. But recognizing at all times, that in some cases, they are two concepts in digital commerce that can be complement to full satisfaction. Beyond another series of technical considerations that will be the object of attention in another article.
Within this context in digital marketing you cannot forget at any time that we leave the differences that are based on the ultimate recipient for last: the cliente. With these criteria, a very clear distinction between ecommerce and Marketplace is the target audience, which is different in each case. In the first of the figures, there is a tendency to attract users to buy a certain product by item.
While on the contrary, in the Marketplace it focuses on the search for buyers and sellers. For this precise reason advertising campaigns will be seriously differentiated from each other. On the other hand, another aspect to differentiate is the profitability of the businesses and where the virtual store formats tend to be generally more profitable. Although in the end everything will depend on the model that the entrepreneurs choose.
- Not in vain, the providers of an e-commerce they are usually wholesalers And this in practice means that they have a higher profit margin.
- While the providers of a Marketplace are private and therefore set their prices to market your sales.
They are approaches that cannot be left aside to find the differences between these two very special business models.