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How the Marketplace Works

Online Marketplace

An online marketplace (or online e-commerce marketplace) is a type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Online marketplaces are the primary type of multichannel ecommerce.


In an online marketplace, consumer transactions are processed by the marketplace operator and then delivered and fulfilled by the participating retailers or wholesalers (often called drop shipping). Other capabilities might include auctioning (forward or reverse), catalogues, ordering, wanted advertisement, trading exchange functionality and capabilities like RFQ, RFI or RFP.


In general, because marketplaces aggregate products from a wide array of providers, selection is usually more wide, availability is higher, and prices are more competitive than in vendor-specific online retail stores.



A Freelance marketplace

Freelance marketplaces (crowd-sourcing or outsourcing marketplaces) are websites that match buyers and sellers of services provided via the internet. Service providers, or sellers, create a profile where they include a description of the services which they offer, examples of their work and in some cases information about their rates. Buyers register and complete a basic profile, they then post projects outlining their requirements. Buyers will then bid for these projects on a fixed price or hourly basis. 

Marketplaces for buyers and sellers.





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