Unlike conventional ecommerce websites, online marketplaces allow sellers to list their products without maintaining inventories, product descriptions, or pricing themselves. Marketplaces display sellers' products, take orders and payments, pass orders to sellers, track deliveries, and pay sellers after deducting a fee. This benefits sellers by providing access to the large customer bases of marketplaces without the costs of building and maintaining their own websites. However, competition is intense as many brands list on marketplaces, and smaller sellers may feel pressure to lower prices.

1. Ecommerce Market Places

2. General Online Store

4. Functioning Mechanism
Unlike conventional ecommerce websites, marketplaces transfer the burden of
maintaining inventories, logistics, images, product descriptions, and pricing to the seller.
There is more than one operational model for marketplaces, but the most common
method involves marketplaces being merely an order booking mechanism.
Marketplaces display the seller's wares, collect orders and payments, forward orders to
the seller, track delivery, and release payment to the seller after deducting a fee.

5. Why?
Many sellers on virtual marketplaces sell on their own websites as well the reason being:
• marketplaces are attractive to sellers
• they tend to have huge traffic
• For the small seller to attract even a fraction of
that traffic on her or his own website is
a humongous job.
• Selling on marketplaces does away with the
requirement of having your own website,
hosting, technology, payment gateway, accounting software which are costs which you might
not want to incur initially

6. Using existing resources to create E-Commerce Store and then converting that E-
Commerce Store into Multi Vendor Marketplace. What do we really mean about using
existing resources. By Existing Resources here we mean the Open Source E-Commerce
Platforms which can be used to create E-Commerce Store. We have a wide range of
Open Source E-Commerce Platforms which can be used to create a new E-Commerce
Store for commercial purpose without any restrictions or limits. Apart from this, these
Open Source platforms provides a great backend interface to add and manage products,
orders and customers.
Few of the very popular Open Source E-Commerce Platforms
are shown in the next page:
WHAT YOU CAN DO?

8. EBAY

9. EBAY

10. Advantages
• sell a large number of SKUs
• no need to maintain inventory.
• Operational efficiencies improve as some overheads are transferred to the seller.
• Being a marketplace provider allows you to focus on developing ecommerce
technologies.
• Margins improve.
• Positive cash flow: the result of these various savings is clearly felt in the finances of the
company. Since E-Commerce websites have heavier initial investments to make to fire up
its activity, its treasury will take longer to break even.

11. Concerns
Competition & Brand Visibility
• competition in a marketplace tends to favor larger, more well-known brands.
• all brands, regardless of their size, are stacked up against each other and the ability to stand out in a
sea of competitors is limited.
Pricing
• small brands respond to the pressure of being compared against big competitors by cutting prices.
• greater disadvantage: larger brands can compete on the strength of their brand and the perceived
quality of their products; effectiveness of price reductions is further diminished as other brands enter
the marketplace and pursue a similar strategy.
• Devaluing product by competing aggressively on price is a scenario that no brand wants to optimize
for, but is often considered a necessary evil in the Marketplace model.

12. In 2015 responsive, mobile--‐friendly eCommerce websites will stop being a
competitive advantage and start to become a necessity for doing business
online.
Web design trends:
1. Data science
2. Hidden menus (sometimes called hamburger menus)
• People don’t yet understand what the hamburger menu icon means.
3. Responsive design for large screens
4. Flexible and large typography
5. large photography
6. Video content and backgrounds
Some Upcoming Trends

13. • Social commerce is evolving to meet companies’ needs.
• Twitter joins other companies like Facebook in trying to prove that social commerce is
working.
• Facebook dominates as a source of social traffic and sales --‐ average of 85% of all
eCommerce orders from social media come from Facebook.
• Community style sites like Polyvore, Instagram can generate high average order value.
• Facebook has the highest conversion rate for all social media ecommerce traffic at
1.85%Social commerce workarounds like
Social Media

14. • Information security was one of the biggest stories of 2014. – Kmart , JPMorgan,
Snapchat, Apple iCloud, Sony, Xbox,
• 54% of the aVacks targeted eCommerce systems.
Point of sale (POS) attacks come next, making up 33%.
• Experts believe that these two types of breaches will dominate the landscape in the
upcoming years.
• Java, Adobe Flash, Adobe Reader and other third-party applications accounted for 85%
of the exploits used in the cyber attacks last year.
• Many organizations are still incapable of detecting data breaches themselves.
Security