What is an eCommerce marketplace? A beginner’s guide to the digital marketplace world

Uncover everything you need to know about eCommerce marketplaces — what they are, the benefits they offer and how to scale them successfully. Explore real-world examples and discover how commercetools integrations can drive marketplace success.

Everyone knows Amazon. It’s the giant of online shopping and often the first thing that comes to mind when we think of an eCommerce marketplace. If you're considering launching a digital marketplace, you’re probably wondering, "How can I possibly compete with them?" Well, here’s the thing: While Amazon dominates, there’s plenty of room for specialized and niche marketplaces to thrive.

By 2027, third-party sales on online marketplaces are projected to comprise 59% of global eCommerce. B2B marketplaces, the fastest-growing digital sales channel, are expected to reach $351 billion USD in combined sales — a 35% increase from $260 billion USD in 2023. This booming trend underscores the appeal of marketplaces for both businesses and consumers, offering convenience, variety and competitive pricing all in one place. So, whether you're targeting B2C or B2B, understanding what an eCommerce marketplace is — and how to make yours successful — is essential.

In simple terms, an eCommerce marketplace is an online platform where multiple sellers offer products or services to a shared customer base. Unlike a traditional online store, where a single brand sells directly to customers, a marketplace brings together various vendors under one digital roof. Think Amazon, Etsy or Alibaba.

Here’s a quick breakdown of the key features that define a marketplace:

• Multiple vendors: Sellers from different businesses list their products.

• Unified shopping experience: Customers can browse a wide variety of products in one place, with the added convenience of a streamlined checkout process that combines items from multiple vendors into a single transaction.

• Platform management: The marketplace operator handles transactions, logistics and often customer service.

Whether you’re looking to define a marketplace for consumers (B2C) or businesses (B2B), the core principle remains the same: Creating a seamless space for buyers and sellers to connect.

Operating a digital marketplace offers a wealth of advantages, including:

• Revenue diversification: By hosting multiple vendors, marketplaces can generate income through listing fees, transaction commissions or subscription plans.

• Customer convenience: Shoppers appreciate having a variety of products and services in one place, which enhances user satisfaction and retention.

• Global reach: With the right tools and strategies, marketplaces can connect buyers and sellers from around the world.

• Scalability: Marketplaces are inherently scalable, allowing operators to grow their vendor base and customer reach without significant infrastructure overhauls.

Not all eCommerce marketplaces are created equal. Depending on your target audience and business goals, your marketplace could fall into one or more of these categories:

B2C marketplaces 
Business-to-consumer (B2C) marketplaces connect businesses directly with individual shoppers. Examples include Amazon, eBay and Zalando. These marketplaces often focus on convenience, variety and competitive pricing.

B2B marketplaces
Business-to-business (B2B) marketplaces cater to companies buying and selling in bulk. Alibaba is a leading example, offering everything from industrial machinery to office supplies. B2B marketplaces typically emphasize pricing transparency, streamlined purchasing processes and long-term vendor relationships.

C2C marketplaces
Consumer-to-consumer (C2C) marketplaces facilitate direct transactions between individuals. Platforms like eBay and Facebook Marketplace exemplify this model, enabling users to buy and sell products peer-to-peer, often with added features for ease and security.

Vertical marketplaces
Vertical marketplaces specialize in a specific industry or niche, such as fashion, electronics or home goods. Examples include Farfetch for luxury fashion or StockX for sneakers. By focusing on a single category, they offer curated experiences and cater to specialized audiences.

Horizontal marketplaces
Horizontal marketplaces, like Amazon and eBay, offer products across various categories, catering to a broad audience. Their extensive range and convenience make them one-stop shops for diverse consumer needs.

Unified marketplaces
Unified marketplaces blend both B2B and B2C elements. For instance, a platform might serve individual customers and corporate buyers simultaneously. This model allows businesses to expand their customer base without managing separate systems for B2B and B2C sales.

A common question is whether a marketplace and a platform are the same thing. While they share similarities, they’re not quite the same. While often referred to as a platform, a marketplace is a commerce solution that is designed to enable transactions between buyers and sellers. For example, Etsy is a marketplace that connects artisans and customers, specializing in handmade and vintage goods. 

On the other hand, a platform refers to the broader infrastructure that allows participants to interact. For example, commercetools Platform powers individual online stores but doesn’t inherently function as a marketplace. In short, marketplaces are a specialized kind of solution built on an eCommerce platform. Understanding this distinction is key to deciding how to approach your business strategy.

Scaling a marketplace may require a bit of effort, but the right approach and technology make all the difference in transforming your marketplace into a thriving hub.

Here’s how to approach it:

1. Focus on balancing supply and demand. A successful marketplace maintains an equilibrium between vendors (supply) and buyers (demand). Too many sellers without buyers — or vice versa — can lead to dissatisfaction and churn.

2. Pick the right underlying platform. While some large vendors like Amazon build their own, this isn't sustainable for most marketplaces. You'll need to invest in tools like commercetools' API-first platform that simplifies vendor onboarding, inventory management and payment handling. commercetools also supports seamless marketplace integration, allowing businesses to customize and scale their offerings without the technical limitations of monolithic systems.

3. Prioritize user experience. A smooth, intuitive shopping journey — from navigation to checkout — keeps buyers returning and vendors engaged.

4. Expand your reach through partnerships. Collaborating with complementary businesses introduces your marketplace to new audiences while strengthening its credibility.

5. Adopt scalable infrastructure. Cloud-native solutions, such as those offered by commercetools, ensure your marketplace can handle traffic surges and adapt to evolving market needs with ease.

commercetools’ flexible architecture has empowered many businesses to launch and scale their online marketplaces successfully. A standout example is Interflora Group, including Interflora UK and Interflora Australia, a leading floral delivery service. Leveraging commercetools’ API-first technology, Interflora connects local florists with customers across regions, creating a seamless marketplace experience. The platform ensures that each florist retains autonomy while benefiting from the larger network’s reach and infrastructure.

Another success story is John Lewis & Partners, which operates a curated online marketplace alongside its flagship retail stores. Using commercetools’ composable commerce approach, John Lewis expanded its digital footprint, offering customers a broader range of products from trusted third-party vendors while maintaining its high-quality brand standards. The marketplace model has allowed the company to meet evolving consumer demands and support a seamless omnichannel experience.

These examples demonstrate how businesses across industries leverage commercetools to reimagine their marketplaces, ensuring scalability, efficiency and user satisfaction.

commercetools’ collaboration with marketplace leaders like Mirakl and Marketplacer takes marketplace development to the next level. These partnerships allow businesses to integrate commercetools’ composable commerce capabilities with specialized marketplace solutions seamlessly. 

Mirakl, for instance, provides a robust marketplace management layer that works hand-in-hand with commercetools’ infrastructure. It simplifies vendor onboarding, catalog management and order orchestration, enabling businesses to scale their operations quickly without sacrificing control. Similarly, Marketplacer focuses on building fully customizable marketplaces. Paired with commercetools’ API-first approach, businesses can create marketplaces tailored to their unique needs, offering a superior customer and vendor experience.

These integrations empower businesses with tools to manage complex operations while retaining the agility to pivot and grow. Whether it’s scaling to meet peak demand or diversifying product offerings, commercetools and its partners ensure that businesses stay competitive in a fast-evolving digital commerce landscape.

In 2024 and beyond, eCommerce marketplaces will continue to redefine how businesses connect with customers. Whether you’re an entrepreneur exploring this model or an established brand looking to expand, understanding the marketplace’s dynamics is key.

With the right technology, like commercetools’ composable commerce solutions, and strategic partnerships with industry leaders like Mirakl and Marketplacer, building and scaling a successful marketplace is within reach. The question is, are you ready to seize the opportunity?

Want to know even more about eCommerce marketplaces? Then download our white paper: Demystifying digital marketplaces.