Glossary of Terms

What is an Online Marketplace?

Online Marketplace Definition

An online marketplace is a digital platform that connects buyers to multiple third-party sellers. Unlike traditional brick-and-mortar or ecommerce stores, online marketplaces do not own inventory. Instead, they provide a venue for sellers to offer products and services to potential customers. The marketplace operator typically earns revenue through commissions on sales or by charging fees for using their platform.

Building a successful online marketplace requires careful planning, a solid understanding of your target market, and a commitment to providing a high-quality user experience. With the right strategy in place, however, an online marketplace can provide a lucrative opportunity for startups, mid-market businesses, and enterprise businesses alike looking to launch or expand their business.

Online marketplace definition

Related terms

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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