An online marketplace (or online e-commerce marketplace) may be a sort of e-commerce website where product or service information is provided by multiple third parties. Online marketplaces are the first sort of multichannel e-commerce and may be how to streamline the assembly process.
In a web marketplace, consumer transactions are processed by the marketplace operator then delivered and fulfilled by the participating retailers or wholesalers.
In general, because marketplaces aggregate products from a good array of providers, selection is typically more wide, and availability is above in vendor-specific online retail stores. Since 2014 online marketplaces became abundant.
How does a marketplace business model work?
Marketplace is trying to create a connection between the demand and supply enabling them to match and do the transaction.
Marketplace is one of the type of 2-sided markets
i. Online sale of physical products
ii. Online sale of online products
iii. Purchase of services
ii. Energy market
iii. Telecommunication market
i. Sharing physical resources
ii. Sharing online resources
i. Dating sites
ii. Work platform
Marketplace components and participants
Products and services
Other business partners
Front end: The portion of an e-seller’s business processes through which customers interact , including the seller’s portal, electronic catalogues, a shopping cart, a search engine, and a payment gateway.
Back end: The activities that support online order fulfilment, inventory management, purchasing from suppliers, payment processing, packaging and delivery.
Types of marketplaces
1) Electronic storefronts
Storefront: A single company’s website where products or services are sold.
E-mall (Online mall): An online shopping centre where many online stores are located.
Visualizations and virtual reality in shopping malls.
2) Types of stores and mall
General stores / malls.
Specialized stores / malls.
Regional versus global stores.
Pure play online organizations versus click and mortar stores.