An online marketplace is a digital platform where multiple independent sellers offer products or services to buyers. The operator typically provides discovery, transaction and trust infrastructure while each seller remains responsible for some or all of the offer and fulfillment.
How does an online marketplace work?
The platform brings buyers and sellers into one environment, standardizes listings and may manage checkout, payments, reviews, disputes or delivery. The exact division of responsibility depends on the marketplace's terms and business model.
Which marketplace models are common?
- Consumer product marketplaces
- B2B sourcing and procurement platforms
- Service marketplaces
- Vertical marketplaces for one industry
- Managed marketplaces that control more of the transaction
Who is the seller of record?
The marketplace operator is not automatically the seller. Buyers should identify the contracting seller, merchant of record, invoice issuer, warranty provider and importer of record rather than assuming the platform performs every role.
How do marketplaces earn revenue?
Common models include commissions, listing fees, subscriptions, advertising, fulfillment charges and payment fees. These charges can affect seller margin and the price presented to the buyer.
What should a business verify?
Review seller identity, product specifications, authenticity, payment protection, delivery terms, returns, tax treatment and dispute procedures. For cross-border orders, confirm customs responsibility and landed cost.
