A marketplace model, is an eCommerce website where the products, whether real or intangible, are offered by third parties rather than the website’s owner.
The direct model, on the other hand, involves the website’s owner selling their own products , again whether the products are real or intangible.
We can discuss them under categories as:
Visibility
E-Commerce
Potential buyers only see your brand when you have your own store. They aren’t likely to have arrived there by chance. They’re interested in your brand right now and won’t notice anything else unless it’s something you put there on purpose.
E-Marketplace
Brands that are well-known and well-established acquire more visibility. This strategy, contrary to popular opinion, will most likely give you less visibility among competitors.
Competition and Pricing
E-Commerce
Prices are not compared in your own store. Your brand will remain in the spotlight as a result of this. Although pricing is always a consideration when comparing two companies, your store lets your marketing to do a lot of the talking, so a cheap price isn’t always the best option.
E-Marketplace
Because it can be immediately compared, price plays a considerably larger influence here against the competition. In most circumstances, you can easily win by dropping your pricing, and this is a simple fix. But reducing price for only competitions, can be risky for your business profit in long run.
On what other grounds, can we compare e-commerce and e-marketplaces, do comment your views .
