The first major difference is the role played by the operator that handles the platform. On an online classifieds website, the service it provides is minimal. It provides a platform on which any one individual or professional entity can state what they are after or what they are looking to sell.
It doesn’t binds the operator’s responsability in any way, transactions aren’t necessarily integrated to the platform, letting sellers and buyers decide how they want to conclude the transaction, from online transfers to cash, whatever suits them best. Craigslist is one example, or french website Leboncoin.fr. On the other hand, marketplaces provide a safe bay to buyers and sellers, and provides them with myriad tools and services that can ease the trading process.
The second difference is easily deduced as reliability of the platform, and security of the transactions. The Marketplace has to be able to be seen as a trustable third party by buyers and sellers by ensuring that any transaction made on the platform is secured, and guaranteeing the quality of goods sold of services provided. It does so by carefully picking its sellers making sure their service matches the level of the client satisfaction a Marketplace looks for.
Therefore, the Marketplace’s responsability is much larger than the classifieds website, as it must provide secured online payment, manage the products and services catalog by keeping it updated and fully detailed at all times, supply a legal framework that authentifies both ends of the transaction and give buyers a way to monitor their order’s status, between other things that will help clients see the platform as reliable and trustable.
Moreover, both these platforms generate income differently. On a classifieds website, publishing a classified ad is generaly a paid feature. Additionally, other services complement this feature such as making advertisers pay to promote their ad and get more visibility or the ability to automate the publication of a great number of ads, especially if you have recurring offers.
Marketplaces are more subtle in that they generally collect a percentage of every sale that can vary greatly from a sector to the next. They tipically don’t charge you on how many products you put for sale, on the contrary, sellers are encouraged to upload large catalogs as it offers customers more options when looking for something. It also makes sellers more competitive against other sellers. Advertising can eventually be a good way to complement either platform’s revenue if their traffic is large enough.
Thus, Marketplaces offer the same advantages as physical malls, in that they gather a seizable amount of products or services from different brands and possibily sectors in the same spot, for which quality is assured. In 2013, Ebay decided to close their classified advertising service for some products to make its platform more appealable to customers, its business model stays ambiguous, more hybrid than truly a Marketplace.
Ideally, in order to prosper, an e-commerce platform has to be able to ensure it offers the best level of customer satisfaction, the best security for their transactions, but has to stay scalable and not neglect its growth opportunities. A technical Marketplace solution like the one offered by Iceberg Marketplace guarantees these fundamental problematics are addressed.
IZBERG provides the most advanced Marketplace platform on the market, allowing mid-size and large companies to increase their revenues, lower their costs, and offer an outstanding shopping experience to their customers.
Available by API, IZBERG solutions are fully customizable, in white label and in SaaS.
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