E-commerce marketplace helps brands expand their business

An e-commerce marketplace is an online platform that facilitates shopping from sources. The e-commerce marketplace platform helps brands boost their products. 

The covid-19 pandemic has boosted the online shopping market growth to the next level. The e-commerce marketplaces have also expanded their potential growth. If you want to expand your business, selling products on an e-commerce marketplace is a great option. Ecommerce marketplaces allow retailers to sell their products while others focus on specific niche markets. 

About 1.92 billion consumers are expected to buy desired products online in 2019. Shoppers are turning to e-commerce marketplaces to compare prices, and purchase products on an online platform. Another figure is to show how consumers prefer e-commerce marketplaces. They spent $1.86 trillion in 2018. By selling products online in an e-commerce marketplace, retailers see lots of benefits. Most importantly, e-commerce marketplaces help brands expand their business operations. Realizing the market demand for online marketplaces, mobile app development companies see e-commerce marketplaces as a potential opportunity to invest. 

Ecommerce marketplace definition

The e-commerce marketplace allows buyers to find different products from multiple vendors and shops on the same platform. The e-commerce marketplace platform has attracted customers and processed transactions while the third-party vendors are responsible for manufacturing and shipping. The e-commerce marketplace platform streamlines the production process in a simple portal, where multiple manufacturers sell the products directly to the buyers. Thus, it helps avoid the stagnant process of stocks. 

Amazon, eBay, and Flipkart have experienced success in the e-commerce marketplace model. The Omni channel model has been the most profitable business in the e-commerce industry. The e-commerce marketplace runs on a platform that allows vendors to sell their goods and services. In terms of revenue, the companies take a percentage of any products sold across the platform. Realizing the e-commerce platform development, mobile app development companies have moved to create an e-commerce marketplace platform. 

Ecommerce marketplace platform: Types and Features 

There are various types of e-commerce marketplace platforms based on business models and operations. 

Buyer-oriented e-commerce marketplace 

The e-commerce marketplace platform allows buyers who want to establish an effective selling process. The buyer-oriented e-commerce marketplace helps buyers to lower administrative costs and get the best price from sellers and suppliers. Besides, the suppliers can use the type of e-commerce marketplace to advertise their goods and services to the set of customers. Mobile app development companies also see the buyer-oriented e-commerce platform as a kind of e-commerce marketplace to develop. 

Supplier-oriented e-commerce marketplace 

A large group of suppliers often use a supplier-oriented e-commerce marketplace to establish an efficient sales channel. The e-commerce marketplace for suppliers helps increase visibility and gets leads from potential customers. It is also called the supplier directory. Buyers can access information about the suppliers, products, and even places that they are not familiar with. 

Vertical and horizontal e-commerce marketplace 

The vertical e-commerce marketplace allows users to access online businesses vertically. It can access every segment of a particular industry such as automotive, chemical, and textile. Purchasing process uses the vertical e-commerce platform to increase operational efficiency. It also helps decrease costs for supply chain and inventory management. 

The horizontal integration of the e-commerce marketplace connects buyers and sellers in different industries and regions. The horizontal e-commerce marketplace allows buyers to purchase products indirectly such as office and stationery. Offshore development teams in mobile app development companies have realized the demand for both vertical and horizontal marketplaces. 

Independent e-commerce marketplace 

The independent marketplace is a third-party business-to-business online platform. The type of e-commerce marketplace is open to buyers and sellers from a specific field. The independent marketplace can access classified ads, and request quotations and bids on your products. You have to pay the minimum payment of registration fees to participate in these kinds of e-commerce marketplaces. 

Ecommerce marketplace features for e-commerce marketplace development 

• A simple and easy-to-register signup process. 
• Dashboard for vendors/product suppliers. 
• Easy-to-use custom search and navigation. 
• Friendly interface. 
• Payment gateways. 
• Analytics and Report Dashboard. 
• Ratings and Reviews. 
• Integrated social media sharing. 
• Security. 

Ecommerce marketplace development: 4 marketplace trends to expand the business 

According to a report in 2021, the estimated monthly website visits to online e-commerce marketplace have figured out the top e-commerce marketplaces by region. Four regions have experienced a transformation in online shopping, leading to a rising number of visitors to the e-commerce marketplace platforms instead of traditional shopping sites. These places can be North America, Europe, Asia-Pacific, and Latin America. 

The revenue of e-commerce marketplace platforms will exceed $7 trillion in 2024 from $1.7 trillion (2019). Hence, the demand for e-commerce marketplace development is increasing. There will be multiple lists of online marketplace sites such as Amazon, eBay, Etsy, etc. With this in mind, e-commerce marketplace development is a feasible business decision in 2022. If you want to start an e-commerce marketplace, take a look at the four marketplace trends of e-commerce development. 

Tailor-made e-commerce marketplace platforms 

Different business models request various approaches. Mobile app development companies see that some business owners want to launch projects quickly rather than develop unique e-commerce marketplace features. So in any case, many entrepreneurs hire offshore development teams in mobile app development companies to build a marketplace app. It easily understands that e-commerce marketplace platforms work the same way. Mobile app development companies help create multi-vendor solutions for e-commerce marketplaces. Lists of online marketplaces include Shopify, WIX, BigCommerce, Adobe Commerce, Arcadier, etc. 

Blockchain e-commerce marketplace 

Blockchain is a technology that records, verifies, and tracks transactions and contracts among parties. In the past, blockchain technology was associated with only cryptocurrency. However, blockchain technology penetrates various industries. E-commerce marketplace development is not an exception. According to Statista, B2B transactions on the blockchain will reach $1.77 million in 2025. It is three times more than the same category in 2022. Mobile app development companies start jumping into the e-commerce marketplace development, especially for blockchain. 

Buy Now, Pay Later is a rising e-commerce marketplace development service 

Buy now, pay later allows buyers to postpone payment for products and services that they receive immediately. Buyers can buy high-value and low-value products by applying long-term or short-term plans respectively. Lists of online marketplaces for Buy Now, and Pay Later include Affirm, Afterpay, Sezzle, and Klarna. 

Delivery solutions: shipments should be faster than cheaper 

The fast pace of life has forced people to make decisions quickly in terms of the products and services that they use. Thus, mobile app development companies consider user experiences a priority. Buyers are willing to pay more for better products, support, and faster delivery services. According to Statista research, half of US buyers use rapid grocery delivery services. So establishing an efficient logistics system is a must for entrepreneurs who hire mobile app development companies to create e-commerce apps. By integrating the shipment API, sellers can partner with local delivery services such as bicycles, scooters, and on foot. 

The Bottom Line 

Several online shops provide buyers with goods and services; however, it also leads to some confusion about their products. Thus, an e-commerce marketplace can solve the problem by gathering all product suppliers on a platform. The e-commerce marketplaces allow buyers to compare prices and various products which meet their needs. In 2022, e-commerce marketplace development is a trend and is always in high demand. Many brands either choose existing e-commerce marketplaces to display their products or hire mobile app development companies to develop an e-commerce marketplace. If you want to start a new e-commerce marketplace, contact us for more details.