All you need to know about a marketplace

What is a marketplace in simple words

A marketplace is an online platform where sellers can offer their goods or services and buyers can buy them. In fact, a marketplace is an intermediary between sellers and buyers, providing a platform for trade. Examples of marketplaces are such well-known sites as AliExpress, eBay, Rozetka, and Amazon.

Features of marketplaces

1. A variety of products and sellers. The marketplace combines many sellers, which allows buyers to choose from a wide range of products.
   
2. Intermediary role. The platform controls the transaction process, ensuring the safety and security of both buyers and sellers.
   
3. Ease of use. Sellers can quickly start selling goods without the need to create their own online store.

What does the owner of an intermediary site earn

The main income of marketplace owners comes from commissions on the sale of goods. Marketplaces can also earn money from advertising, placing sellers in favorable positions, and additional paid services, such as product promotion.

What is the difference from online stores

The main difference between a marketplace and an online store is that a marketplace is a platform for many sellers, while an online store usually belongs to one owner and offers products from only one brand or company.

Popular marketplaces in Ukraine

Rozetka

Rozetka is one of the largest marketplaces in Ukraine offering a wide range of products, from electronics to clothing. The platform unites many sellers and provides a convenient delivery system.

Prom.ua

Prom.ua specializes in providing services for small and medium-sized businesses, allowing sellers to offer different products on one platform. Products range from building materials to cosmetics.

Bigl.ua

Bigl.ua is a marketplace focused on everyday goods and small businesses. It unites sellers who offer household goods, gadgets, and personal products.

OLX

OLX is a platform for private ads where users can buy and sell new and used goods. You can also find real estate rentals and vacancies here.

Allo

Allo is a platform that initially specialized in selling electronics, but later expanded its range and became a marketplace with a wide selection of goods.

Shafa.ua

Shafa.ua is a marketplace focused on selling clothes and accessories where users can buy and sell fashion products.

Violity

Violity is a niche marketplace for collectors where you can find antiques, art, and collectibles.

Oxo.ua

Oxo.ua is a marketplace for a wide range of products, from household appliances to personal accessories.

Epicenter M

Epicenter M is a marketplace that was originally known as a hypermarket of building materials, but now offers household goods, garden tools, household appliances, and much more.

Popular marketplaces in the world

AliExpress

AliExpress is one of the largest Chinese marketplaces that offers millions of products around the world. Products range from electronics to clothing and household goods.

eBay

eBay is an international platform for auctions and direct sales of goods. On eBay, you can find both new and used items, as well as collectibles.

Amazon

Amazon is one of the largest marketplaces in the world, offering millions of products and services from various sellers. It is known for fast delivery and high level of service.

Etsy

Etsy is a niche marketplace specializing in the sale of handmade goods, vintage items, and handmade products.

Walmart

Walmart is an American retail chain that has also launched its own marketplace, offering a variety of third-party products.

Varieties of marketplaces

Marketplaces can be classified according to different criteria:

1. B2C (Business-to-Consumer): Sellers (businesses) sell goods directly to customers (for example, Rozetka).
   
2. B2B (Business-to-Business): Platforms for wholesale transactions between companies (e.g., Alibaba).
   
3. C2C (Consumer-to-Consumer): Users sell goods to each other (e.g. OLX).

Advantages and disadvantages of trading on marketplaces

Is a plus:

1. Access to a wide audience of buyers.
2. No need to develop and maintain your own website.
3. Secure transactions and convenient tools for sellers.

Cons:

• High competition between sellers.
• Commissions and other payments in favor of the platform.
• Limited control over the sales and marketing process.

Should I sell on the marketplace or launch my own online store?

The decision between selling on a marketplace or launching an online store depends on your goals. A marketplace provides a ready-made audience and infrastructure, but limits control over the brand and requires payment of commissions. An online store gives you full control over your business, but requires more investment in development, marketing, and support.