A marketplace is a digital platform that connects multiple sellers with buyers in a single environment, making it easier to search for, compare, and purchase products or services.
Unlike a traditional online store, where a single company sells its products directly, a marketplace can host multiple independent sellers. The platform acts as an intermediary, providing the necessary infrastructure to list products, search for items, and, typically, complete the transaction.
In the European Union, the legal definition of an online marketplace encompasses software-based services, such as websites or apps, that enable consumers to enter into distance contracts with other merchants or consumers. The essential characteristic is, therefore, the existence of a platform that brings different participants together and facilitates their transactions.
A marketplace can sell physical products, digital products, or services. It can also operate between businesses, between businesses and consumers, or even between individuals.
How does a marketplace work?
A marketplace works by connecting two or more groups of users, typically sellers and buyers.
The marketplace operator provides the technology and sets the platform's rules. Sellers join the marketplace, create or sync their catalog, and list products or services. Buyers use the same platform to search, compare offers, and make purchases.
The OECD classifies marketplaces as intermediary platforms and notes that they can provide sellers with services such as product listing, payment processing, advertising, analytics, complaint management, and, in some models, logistics.
In practice, a purchase might follow a process similar to this:
a seller registers or is approved on the marketplace;
their products or services are added to the platform;
The marketplace organizes and displays the various offers;
the buyer searches or browses the catalog;
The platform displays products based on its search and ranking systems;
The buyer places the order;
the payment is processed;
The order is forwarded to the seller;
The product is shipped by the seller or through a logistics service affiliated with the marketplace;
The marketplace then transfers the corresponding amount to the seller, deducting any applicable fees, if any.
Not all marketplaces follow this exact process.
Some platforms handle only product discovery and transactions, while others offer payment processing, warehousing, order fulfillment, delivery, returns, customer support, advertising, and other features.
Hybrid models are also common. A company may sell its own products while simultaneously allowing third-party sellers to use the same platform to sell their products.
What is a marketplace used for?
A marketplace essentially serves to bring together supply and demand on a single platform.
For buyers, it allows them to find products or services from different suppliers without having to visit dozens of websites individually.
For sellers, it can serve as a new sales channel and provide access to the audience that already uses that platform.
For the company that operates the marketplace, this allows it to create a business model based on facilitating transactions, rather than relying exclusively on the direct sale of its own products.
A marketplace can be used, for example, to:
combine products from different brands;
connect manufacturers with distributors;
connect companies with suppliers;
sell secondhand goods;
find and hire services;
create a digital channel for a specific industry;
expand operations into new markets;
complement your own online store with other sales channels.
The marketplace can thus be part of a broader e-commerce strategy, alongside company-owned stores, B2B platforms, brick-and-mortar stores, and other sales channels.
What are the main features of a marketplace?
Multiple sellers on the same platform
The presence of independent sellers is one of the features that distinguishes a marketplace from a traditional online store.
Each seller can manage their catalog, prices, inventory, and terms, within the rules established by the platform operator.
From the buyer's perspective, different offers are brought together into a single experience.
Mediation between sellers and buyers
The marketplace is not just a product catalog.
Its main function is to facilitate the business relationship between the two parties.
It is precisely this element of intermediation that distinguishes a marketplace from other digital models, such as an online store that sells only its own products or a simple classifieds website where the transaction can take place outside the platform.
Search, filters, and rankings
When there are thousands of products and numerous sellers, the way information is organized becomes crucial.
Marketplaces typically use search engines, categories, filters, and ranking systems to decide which listings to display and in what order.
Criteria such as relevance, price, availability, or delivery time may be included in these systems, depending on the platform.
In the European Union, there are also specific transparency requirements regarding the key criteria used to rank the offers presented to consumers.
Payments and Distribution of Funds
Many marketplaces process the buyer's payment directly.
The platform receives the payment associated with the transaction and subsequently distributes the amount to the seller in accordance with the established terms.
The payment infrastructure may also include verification mechanisms, fraud prevention, refunds, and other features related to transaction security.
Commissions and Other Forms of Monetization
One of the most common models involves charging sellers a commission or fee for the transactions they make.
However, there is no single monetization model.
A marketplace can combine percentage-based commissions, flat fees, monthly fees, additional services, in-platform advertising, sponsored listings, or logistics services.
The OECD identifies the commissions and service fees paid by sellers as key sources of revenue for this type of platform.
Salesforce Management
A marketplace needs to manage not only customers but also sellers.
This may involve registration and validation processes, business data management, catalogs, commissions, payments, evaluations, complaints, and quality standards.
In closed models, sellers are pre-selected or pre-approved. In others, participation may be more open, provided that the requirements set by the platform are met.
Flexible Logistics
Logistics may be the responsibility of the seller, the marketplace, or external partners.
There are platforms where each seller stores and ships their own orders. On others, the marketplace offers fulfillment services, storing products, preparing orders, shipping them, and managing returns on behalf of the sellers.
Common rules for the entire platform
All sellers operate within the ecosystem created by the marketplace.
The platform can establish rules regarding product presentation, images, prices, delivery times, service quality, data usage, customer support, and other aspects of the user experience.
Therefore, joining a marketplace usually means accepting a lower level of control than you would have with your own online store.
What types of marketplaces are there?
There isn’t just one type of marketplace. These platforms can be classified in different ways, depending on the participants, the products sold, and how the platform itself operates. AICEP identifies different models used in e-commerce, including B2C, B2B, and C2C.
B2C Marketplace
In a B2C (Business-to-Consumer) marketplace, companies sell products or services to end consumers through the platform.
It is one of the best-known marketplace models.
The platform connects professional sellers with people who want to buy their products.
B2B Marketplace
A B2B marketplace connects businesses with other businesses.
It can be used, for example, to bring together manufacturers, distributors, wholesalers, suppliers, and business customers.
In this context, the operation may require features different from those used in a B2C marketplace, such as volume-based pricing, commercial terms, requests for quotes, or purchasing processes specific to business-to-business relationships.
C2C Marketplace
On a C2C (Consumer-to-Consumer) marketplace, the platform facilitates transactions between individuals.
It is a model widely used for selling used products, personal items, or other goods traded directly between consumers.
Horizontal marketplace
A horizontal marketplace offers products or services across various categories.
The value proposition often lies in the variety and the ability to find different types of offerings on the same platform.
Vertical marketplace
A vertical marketplace focuses on a specific industry, category, or need.
For example, it may specialize in fashion, industrial components, food products, lodging, or certain professional services.
Specialization makes it possible to develop features, research, and processes that are better tailored to the needs of that market.
Open or closed marketplace
In an open marketplace, it is generally easier for new sellers to enter the market, provided they meet the established requirements.
In a closed or curated marketplace, sellers and products are selected before they can be presented to buyers.
Hybrid marketplace
A hybrid marketplace combines the company's own sales with sales made by third parties.
This means that the company responsible for the platform can simultaneously act as both the marketplace operator and a seller within its own ecosystem. The OECD specifically identifies this model among the various configurations used by online marketplaces.
What are the advantages of a marketplace?
The benefits depend on a company's position within the ecosystem.
For salespeople
One of the main advantages is access to a channel that may already have users and demand.
A company can make its products available on a marketplace without having to set up all the sales, payment, and discovery infrastructure needed to operate an independent channel.
Depending on the platform, you may also benefit from logistics, advertising, customer support, or payment processing services.
This can make it easier to enter new channels or markets.
For Buyers
The main benefit lies in the concentration of supply.
Users can find a variety of sellers, products, and prices all on the same platform, reducing the effort required to search for different options.
Reviews, information about sellers, filters, and comparison tools can also help with the decision-making process.
For the marketplace operator
The company that manages the platform can expand the available selection without necessarily having to purchase and store all the inventory offered by third parties.
The model also allows you to generate revenue through sales activities, using commissions, services, subscriptions, advertising, or other sources of monetization.
As supply increases, the platform may become more useful to buyers. And greater demand may, in turn, make it more attractive to new sellers.
This balance between supply and demand is one of the most important components of any marketplace strategy.
Marketplace vs. e-commerce: What's the difference?
Marketplace and e-commerce are not opposing concepts.
E-commerce is the broadest concept: it refers to the sale or purchase of products and services through electronic channels.
A marketplace is one of the business models that can exist within e-commerce: instead of having just one company selling directly to the buyer, the platform allows multiple sellers to participate.
The difference becomes clearer when you compare a marketplace to a company's own online store.
With its own online store, a company typically controls the brand, product catalog, shopping experience, customer relationships, and business strategy. The company itself handles the sales directly.
On a marketplace, the seller uses a shared infrastructure and operates within the rules set by another entity.
This has practical implications.
Having your own store gives you greater control over branding, the customer experience, data, content, and customer relationships.
A marketplace can make it easier to reach an existing audience, but it also introduces commissions, external rules, and direct competition with other sellers within the same platform.
The OECD summarizes the fundamental difference based on the role played by the platform: the online retailer sells directly, while the marketplace acts as an intermediary for transactions by independent sellers.
The two models can also coexist.
A brand can have its own online store and simultaneously use marketplaces as complementary channels for customer acquisition and sales.
Examples of marketplace usage
General-purpose product marketplace
A platform can bring together thousands of sellers and various product categories.
Amazon is an example of a hybrid model, in which the company's own offerings coexist with products sold by third parties through the marketplace.
Specialized marketplace
Instead of trying to bring together all kinds of products, a platform can specialize in a particular sector or type of offering.
Etsy, for example, is organized into specific categories and brings together multiple sellers in a shared marketplace.
B2B Marketplace
A platform can connect manufacturers or suppliers with business buyers.
Alibaba.com is a well-known example of this model, connecting suppliers with companies seeking products and business partners. These examples are also highlighted by AICEP in its information on marketplaces.
Peer-to-Peer Marketplace
Platforms like Vinted or OLX connect people who want to sell items with other users interested in buying them.
In this type of model, the platform's role and degree of involvement in the transaction may vary.
Services Marketplace
The concept is not limited to the sale of physical products.
A marketplace can connect customers and service providers to facilitate the hiring of services, offering search functions, profiles, proposals, payments, and reviews all within the same platform.
An industry-specific marketplace
A company, association, or business group can also create a platform that brings together various suppliers in a particular industry.
In this scenario, the marketplace is no longer just a channel through which a company sells; it becomes a product or business model that must simultaneously attract and serve both sellers and buyers.
Who should use a marketplace?
This question can be analyzed from two perspectives: selling through a marketplace or creating your own marketplace.
Companies that want to sell through marketplaces
Using marketplaces can make sense for companies looking to:
add new sales channels;
reach new consumers;
to gauge demand for certain products;
expand into other markets;
take advantage of existing sales infrastructure;
to complement its own e-commerce strategy.
However, the decision must take into account commissions, margins, competition, platform rules, control over the brand, and access to customer data.
The marketplace should be viewed as a business channel and not just as an additional source of sales.
Companies looking to create a marketplace
Creating a marketplace is a different kind of challenge.
The company no longer manages just a relationship between its brand and customers. It now manages an ecosystem that includes sellers, buyers, payments, business rules, product information, search, technology, support, and, potentially, logistics.
This model can make sense when there is a clear opportunity to consolidate a fragmented market or to bring together, more efficiently, two groups that need each other.
One of the biggest challenges is building both sides of the platform at the same time.
Without sellers, there isn't enough supply to attract buyers. Without buyers, sellers have little reason to participate.
Therefore, even before technology, a marketplace project needs a solid business model, a clear value proposition for both parties, and a strategy to generate demand and supply.
What does it take to create a marketplace?
A marketplace is typically more complex than an online store with only one seller.
In addition to traditional e-commerce features, it is important to consider components such as:
registration and validation of vendors;
management of catalogs from different suppliers;
commission rules;
payments and distribution of funds;
research and rankings;
order management;
stocks;
logistics;
returns;
complaints;
reviews;
areas reserved for salespeople;
integration with ERP, CRM, PIM, and other systems;
security and fraud prevention;
privacy and data protection;
reporting and analytics;
legal requirements for the transaction.
In the European Union, managing a marketplace also involves specific obligations.
European rules require, among other things, transparency regarding who is actually selling to consumers and regarding certain ranking criteria. The Digital Services Act imposes additional obligations on covered platforms, including requirements related to the traceability of merchants, reporting mechanisms, advertising, transparency, and illegal products.
For this reason, developing a marketplace should not be treated solely as a web design or development project. It is also a project involving technology architecture, operations, payments, logistics, governance, and business models.
Frequently Asked Questions About Marketplaces
Is a marketplace the same as e-commerce?
No.
E-commerce is the general concept of buying and selling through electronic means. A marketplace is a specific type of e-commerce in which a platform connects buyers with multiple sellers.
A company's own online store can, therefore, be an e-commerce business without being a marketplace.
How does a marketplace make money?
It depends on the business model.
One of the most common methods is to charge a commission on each transaction made by sellers. There may also be flat fees, subscriptions, premium services, advertising, sponsored listings, payment services, or logistics solutions.
A platform can combine several of these models.
Who sells the product on a marketplace?
On a traditional marketplace, the product is sold by a third-party seller who uses the platform as an intermediary.
However, there are also hybrid models in which the marketplace operator sells its own products alongside those of independent sellers.
In the European Union, consumer-facing marketplaces are subject to transparency requirements designed to let users know whether they are buying from a merchant or another consumer and how certain responsibilities are allocated.
Does a marketplace need to have its own inventory?
Not necessarily.
One of the features of the model is precisely that it allows independent sellers to retain ownership and control of their products.
However, some marketplaces offer warehousing and fulfillment services. In such cases, the products may be physically stored in the platform’s warehouses while still belonging to the seller.
What are the main types of marketplaces?
The most common models include B2C, B2B, and C2C marketplaces.
It is also possible to distinguish between generalist and specialized platforms, horizontal and vertical platforms, open and closed platforms, or between pure marketplaces and hybrid models.
The rating depends on the relationship among participants and how the platform works.
Is it better to sell on a marketplace or have your own online store?
The two channels serve different purposes and can work together.
A company-owned store offers greater control over the brand, the customer experience, business strategy, and customer relationships. A marketplace allows you to reach a different audience and utilize some of the infrastructure provided by the platform.
For many companies, the most appropriate strategy may involve maintaining their own e-commerce site as the primary channel and using marketplaces as complementary channels.
How much does it cost to sell on a marketplace?
There is no universal value.
Costs depend on the platform, country, product category, seller model, and services purchased.
There may be commissions on sales, monthly fees, fees per ad or transaction, advertising, payment processing, storage, logistics, or other services.
Before choosing a marketplace, it is important to calculate the impact of all these costs on the actual margin for each sale.
Is it possible to integrate a marketplace with an ERP system?
Yes, when the platforms and systems involved provide the necessary integration mechanisms.
An integration can enable the synchronization of information between e-commerce platforms, ERP systems, and marketplace channels, reducing manual processes and preventing catalogs, inventory, orders, and other data from being managed in isolation on each channel.
The concrete architecture always depends on the APIs, systems, and business rules involved.
Marketplaces and the Basicamente Digital
At Basicamente Digital , we view e-commerce as part of a broader technological ecosystem.
We develop and scale B2C and B2B e-commerce operations on Shopify, Shopify Plus, and headless architectures, with integration into enterprise systems such as ERP, CRM, logistics, and other operational components.
Integration with marketplaces can be part of this ecosystem when a company operates across multiple digital channels. Public information from Basicamente Digital specifically includes integrations with marketplaces and multichannel experiences as part of its e-commerce and technology development capabilities.
The goal is to prevent each channel from operating as a silo and to create an architecture in which e-commerce, internal systems, and other sales channels can work together seamlessly.
Want to incorporate marketplaces into your e-commerce strategy?
If you want to connect your e-commerce platform to marketplaces or set up a multichannel architecture that’s ready for growth, contact Basicamente Digital.