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May 15, 2020
What difference is there between a traditional e-commerce and a marketplace?
What difference is there between a traditional e-commerce and a marketplace?
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Traditional e-commerce is a catch-all term for selling things online. This could include companies who own inventory and sell it online (e-tailers like Asos).
On the other hand, marketplaces simply connect buyers with sellers to enable transactions. They don't own inventory themselves.
A marketplace doesn’t sell or buy any products. So it takes considerably less financial risks than e-commerce websites which have to constantly invest in stock that may take time to sell or never sell at all.