Online marketplace
Also called marketplace
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is online marketplace?
An online marketplace is a website where many sellers list products and buyers can compare and buy from any of them in one place. The operator takes a fee on each sale, and for distributors, B2B marketplaces are both a sales channel and a source of competition.
How it works
A marketplace reaches buyers a distributor doesn’t already know, but the marketplace owns the customer relationship and shows competing offers side by side, which pushes prices down. Distributors that use marketplaces treat them as one channel alongside their own B2B ecommerce site and sales team.
Online marketplace example
A distributor lists 2,000 fast-moving items on a B2B marketplace. Most of the orders it gets there are small, and many come from states where it has no branch.
Related terms
- B2B ecommerceB2B ecommerce is selling to business customers online, through a website or app where they can search products, see their own prices and place orders.
- OmnichannelOmnichannel is an approach to selling in which customers can buy through any channel and see the same prices, product information and account history.
- Channel conflictChannel conflict is the friction that arises when a manufacturer or distributor sells through several routes that end up competing for the same buyers.
