Online marketplace

Online marketplace

Online marketplace (or online ecommerce marketplace) refers to a type of ecommerce site where product and inventory information is provided by multiple third parties, whereas transactions are processes by the marketplace operator. Online marketplaces have become a driver of new business for online merchants that leverage them as channels for increased sales. Online marketplaces are the primary type of multichannel ecommerce.

In an online marketplace, consumer transactions are processed by the marketplace operator, which functions as the merchant of record, and then delivered and fulfilled by the participating retailers or wholesalers (often called Drop shipping). Marketplaces offer a variety of products and provide consumers with the convenience of purchasing such products from a single store.

In general, because marketplaces aggregate products from a wide array of providers, selection is usually more wide, availability is higher, and prices are more competitive (compared to vendor-specific online retail stores).


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