This document compares e-commerce websites and online marketplaces, outlining 10 key differences between the two. It notes that e-commerce requires a larger initial investment as the business owns inventory, while marketplaces have lower costs as sellers manage products. Other differences discussed are the technologies used, scalability, customer relationships, marketing benefits, cash flows, navigation, metrics tracking, and sales volumes. The document then provides advice on choosing a development partner and outlines PixelCrayons' services for building online marketplaces.

1. Do you need E-Commerce or
Marketplace?
www.pixelcrayons.com

2. Content
● Introduction
● 10 common differences
○ Level of investment
○ Technological difference
○ Inventory catalog
○ Scalability
○ Customer relationship
○ Benefits of marketing
○ Breakeven and Cash flows
○ Search & Navigation
○ Tracking metrics
○ Sales volume
● Important factors in choosing a web technology provider
● How we can help?

4. Introduction
“In the common sense, we often consider an e-commerce store and an
online marketplaces the same thing. But there are some underlying
differences that differentiate both of them.”

5. Level of investment
Technological difference
Inventory catalog
Scalability
Customer relationship
Benefits of marketing
Breakeven and Cash flows
Search & Navigation
Tracking metrics
Sales volume
To read in detail, follow next slides...
10 Common Differences

6. In general, an e-commerce website demands a larger investment, as you need to invest
significantly on products to maintain your inventory. With a large stock, you will be in a
position to offer a great range of offerings to your customer.
On the other hand, you can start a marketplace with a low investment where your sellers are
responsible for the inventory and you just provide them with the storefront to carry out the
business.
1. The level of investment:

7. US Number:
T: +1 347-630-9630
(0400 – 1330 HRS EST)
UK Number:
T: +44 1923-606-162
(0900 – 1900 HRS GMT)
Australia Number:
T: +61 2-8015-5687
(1300 - 2300 HRS AEST)
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8. For building an e-commerce website, there are different solutions available, which include
Magento, Shopify, Prestashop and others. But for building a marketplace, different
technologies are required.
Building a marketplace often requires more comprehensive efforts and there are very few
solutions available on the market. There are various plugins/extensions available in the
market for Magento, Shopify and others which can be integrated to make the ecommerce
store to marketplace.
You would require experts who can help you in online marketplace development and help you in
integration of extensions as well.
2. Technological Difference:

9. Example : Fresh Fashion – Designed & Developed By : PixelCrayons.com

10. In case of an e-commerce website, you may have to maintain a large inventory in order to offer
your customers more choices. Since you own the products in your inventory, you may come
across the issues related to unsold goods and may have to throw stock clearance sale to get
rid of the unsold stock.
But a marketplace offers you a more flexible choice and you can just deactivate the products that
are not selling for a long time, and you never bear a cost to maintain your stock in a
marketplace.
3. Different Inventory Catalog:

11. US Number:
T: +1 347-630-9630
(0400 – 1330 HRS EST)
UK Number:
T: +44 1923-606-162
(0900 – 1900 HRS GMT)
Australia Number:
T: +61 2-8015-5687
(1300 - 2300 HRS AEST)
Continue Reading From
Next Slide..

12. When adjudged on the scale of
scalability, a marketplace seems
to be a more stable model. Since
the investment level is low and
products are not owned by you in
a marketplace, it has less
financial risks as compared to a
traditional e-commerce store.
4. Scalability:

13. The success in the online domain lies in building your reputation with your customers. In an
ecommerce business model, you own the products and hence can respond to customer
queries in a speedy manner.
On the other hand, in a marketplace, your role is
more like a mediator and you rely more on your sellers
to provide information to your customers.
5. Customer Relationship:

14. A marketplace enjoys more marketing benefits, as it indexes a large range of products from a
particular sector. It allows sellers to market their products individually and which adds to the
promotions of the marketplace itself.
On the other hand, an e-commerce stores rely on Google Adwords and promote specific product
categories where the competition is crucial among different e-commerce players.
6. Benefits of Marketing:

15. US Number:
T: +1 347-630-9630
(0400 – 1330 HRS EST)
UK Number:
T: +44 1923-606-162
(0900 – 1900 HRS GMT)
Australia Number:
T: +61 2-8015-5687
(1300 - 2300 HRS AEST)
Continue Reading From
Next Slide..

16. An e-commerce store generally requires a larger setup investment and hence the break even time
may be quite longer despite a significant cash flow.
But in case of a marketplace, the profit margins are higher and the cash generated could be
invested again to diversify the business.
7. Break even & cash flow:

17. In a marketplace, the products are offered by multiple vendors and are organized in a catalog.
While in an e-commerce sites, products are arranged based on categories.
Thus, there is a difference in navigation patterns and the search filters are designed using
different parameters in both the cases.
8. Search & navigation:

18. A marketplace can better track its sales and also the performance of the vendors. Thus, it can
have a better insight to choose the product portfolio and enhance its sales.
9. Tracking metrics:
A marketplace needs to sale a larger volume in order to earn the same profit margins that an
ecommerce site earns. Since a marketplace has to handle more number of transactions, it needs
to focus more on the automation.
9. Sales Volume:

19. US Number:
T: +1 347-630-9630
(0400 – 1330 HRS EST)
UK Number:
T: +44 1923-606-162
(0900 – 1900 HRS GMT)
Australia Number:
T: +61 2-8015-5687
(1300 - 2300 HRS AEST)
Continue Reading From
Next Slide..

20. Important factors in choosing a web technology provider
While choosing a technology partner for an e-commerce site development, the focus should be
more on choosing a company that has experience in the e-commerce domain.
From designing a storefront to the shopping cart solution, the developing company should have the
desired expertise.
One can check the portfolio of the company and can get to learn about the e-commerce stores or
the marketplace developed by it.
This will give you an idea about their capabilities and technological expertise.

21. How we can help you?
PixelCrayons is a best digital agency that has a
vast experience in the e-commerce and online
marketplace domain.
The company has a team of developers who are
well versed in the new technologies and can
build multi-vendor sites in affordable budgets.
We can help you in making online marketplace as
per your requirement and budgets.

22. Key Features of our Online Marketplaces
Ability for users to quickly and easily list their products
Online Payment Integration with all payment gateways
User friendly administration console which allows you to keep track of bids placed, auctions won, prices,
commission charges, user details etc
Advanced search filters and functionality allowing the customer to specify additional criteria when comparing items
Easy to use product management system
Instantly generated reports and statistics for all your sales
Reliable, robust and 100% secure system
Development of customized UI themes
Dedicated support and maintenance

23. What We Offer?
Dedicated support and maintenance
Development of customized UI themes
Reliable, robust and 100% secure system
Ability for users to quickly and easily list their products
Instantly generated reports and statistics for all your sales
Easy to use product management system
Online Payment Integration with all payment gateways

24. Reach Us At :-
Facebook : https://www.facebook.com/PixelCrayons
Twitter: https://twitter.com/PixelCrayons
Google+: https://plus.google.com/+Pixelcrayons/posts
LinkedIn: https://www.linkedin.com/company/pixelcrayons
Contact Details
US Number:
T: +1 347-630-9630
(0400 – 1330 HRS EST)
UK Number:
T: +44 1923-606-162
(0900 – 1900 HRS GMT)
Australia Number:
T: +61 2-8015-5687
(1300 - 2300 HRS AEST)
www.pixelcrayons.com

25. Thank You!