What is the difference between a Onlineshop and a Marketplace?

As a B2B marketplace, CheMondis is dedicated to connecting key players of the chemical supply chain. We offer a unique digital purchasing and distribution experience on a cloud-based platform. But what does that even mean? What’s a marketplace? What’s the difference in comparison to a web-shop? And which of both is the best practice?

What is the difference between a marketplace and a online shop?

Simple: Online shops sell their own products digitally via the internet, while marketplaces offer a space to buy and sell products digitally. Typically, an Online shop has one single supplier, while a marketplace has a multitude of suppliers offering products.

Onlineshop vs. Marketplace: Best practice?

Onlineshops are an independent way to sell products online. Onlineshop sellers are not obliged to comply with the conditions of the marketplace and (usually) don’t pay transaction fees. It’s great not having to be reliant on a third party. However, while establishing an online shop one must provide a digital structure.

Either, one can use a web-based-service to use a pre-built online shop, or one can engineer a self-made online shop. Both ways are linked to high entry and maintenance costs. Above all challenges, leading customers to your shop and generating sufficient traffic, might just be harder than expected.

High marketing expenses are required, in order to achieve enough traffic. The cost and time spent establishing an online-shop are often underestimated. 

On the other hand, a marketplace has close to no entry costs, the digital structure is already given, and marketing is provided by the platform. Users can practically start buying and selling right after registration. While selling and buying products online, there is no ideal way to go.

Smart buyers and suppliers don’t choose between one or the other, but rather use both.

Thank you for taking the time to read the CheMondis Blog.

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