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Ecommerce Website vs. social media Marketplace

Ecommerce Website vs. social media Marketplace: Understanding the Difference

The two most popular options for merchants to start their online companies are an eCommerce website and a social media marketplace. However, each solution will lead you to a different type of client. In this post, Akoode will discuss the differences between marketplaces and platforms.

Understanding the difference between Ecommerce Website and a Marketplace

ECommerce, often known as an online marketplace, is to sell things to customers. After learning the advantages and disadvantages of marketplace versus platform, you can now decide which option is best for your business.

Traffic and audience participation

Traffic and audience engagement are critical in every online business, whether an eCommerce website or an online marketplace. Marketplace on the internet

A social media marketplace aims to bridge the gap between sellers and buyers by creating a perfect business environment. However, the target audience is more significant due to the marketplace’s nature, which provides a wide range of product categories and hence more meaningful traffic to the site.

Online marketplaces often encourage users to make purchases while pushing store owners to expand their product or service offerings. Therefore, online marketplaces offer more comprehensive options for product purchases. In addition, network effects are helpful for social media marketplaces. When the volume of potential customers increases, there is a new entry of sellers too, and

it is the same the other way round too. On the other hand, maintaining audience engagement in an eCommerce business is quite challenging. Of course, the task of traffic engagement to an eCommerce business website is not only an expensive process but a time-consuming one too. However, the process will become much easier if you hire a proper eCommerce website development company in Gurgaon.

A social media network like Facebook or Instagram, on the other hand, can significantly help with audience engagement. Facebook analytics solutions are available on the market to track the performance of your Facebook postings.

Brand recognition and marketing

Comparing marketplace versus platform is a significant benefit for firms to understand the marketing approach and targeting clearly.

Sellers on marketplaces, unfortunately, have limited or no access to their customers. As a result, it’s challenging to sell your products or build brand awareness and loyalty. If you can’t contact existing customers to inform them of sales or new product launches, you’ll have to rely on recent sales rather than leveraging the value of earlier purchases.

The lack of direct access to customer analytics and communications is also a disadvantage of online marketplaces. Despite your products’ uniqueness, several similar varieties are available in the market. They are all vying to get noticed by potential customers, and this situation is called market competition. Now, the question is whether or not the products you are offering can stay ahead of others in the market.

Furthermore, many customers who shop on marketplaces believe they’re buying from that marketplace, even if they’re buying from you. As a result, customers are more likely to recall the market than the brand when they return.

Most marketplaces lay a greater emphasis on the products than on the sellers. This makes developing brand awareness and familiarity and eventually differentiating your firm challenging.

Meanwhile, eCommerce websites have full access to all customer analytics and can contact customers directly to tell them of sales deals and new product releases.


Both platforms have significant advantages for retailers, and most businesses use social media markets in addition to having their Ecommerce website. However, an e-commerce website has a high initial investment, whereas social media markets have a lower initial investment. E-commerce websites, on the other hand, score better in terms of per-sale costs, with $0 rewards.


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