Glossary of Terms

What is a Marketplace Business Model?

Marketplace Business Model Definition

A marketplace business model is a type of ecommerce platform where the website operator doesn't hold the inventory or the products for sale. Instead, the marketplace allows third-party vendors to sell and reach customers directly. The difference between traditional ecommerce and a marketplace business model is that marketplace websites do not own any inventory but act as intermediaries between buyers and sellers. This means that, as a marketplace, you don't assume risk or invest in inventory. Instead, you can monetize through a range of business models, including commission, list fees, and more. By allowing third-party vendors to use your platform, you can provide a diverse range of products and services to your customers without worrying about sourcing and maintaining inventory.

marketplace business model definition

Related terms

Multi vendor commerce refers to the concept of multiple vendors selling their products through a single online store.
A B2B (business-to-business) marketplace connects buyers and sellers of products or services for wholesale transactions.
A digital marketplace is a platform where various digital products are bought and sold.
A services marketplace is a digital platform that connects service providers with consumers.
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Related resources

7 Marketplace Business Models to Successfully Monetize

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