Difference Ecommerce, Marketplace and Online Shop


Ecommerce (often also called an online shop) is a website that is used to sell products from website owners.

Products here can be limited to one brand or can be a variety of products from various brands. However, these products are still sold by only one seller, namely the website owner himself.


Marketplace is a third party website that acts as an intermediary that connects sellers with buyers on the internet.

You could say a marketplace is an online department store, where many sellers with various types of products are sold in the same location.

Online Shop

For Malaysia, online shop or olshop refers more to accounts that only focus on selling on social media.

In this article, we will explain the differences between online shops on Facebook and Instagram. Because these two social media are the ones most often used to sell in online shops.


FactorEcommerce (Online Shop)MarketplaceOnline Shop
CostA little bit of money at the start. But it’s a long term investment.Free (except to enjoy premium features provided by the marketplace)Free (except for using paid social media features, such as Facebook Ads or Instagram Ads)
Making Difficulty LevelCreation is easy and fast if you are familiar with operating the website.You can register and use it immediately to sell.You need to change / create a business account on social media first.
Types of goodsSuitable for branded goods, artisan, boutique, and other items that need high brand awareness.General items such as tools and accessories that can be purchased in bulk at onceAny item, but on a smaller scale intended for personal consumption.
PromotionPromotion efforts are more flexible and you can set your own.Promotion is more controlled by the marketplace.A little effort and money using Facebook Ads or Instagram Ads.
CompetitionCompetition with fellow websites to get first ranking in search results.Competition in one marketplace is very tight.Competition on one social media is fierce.
Total SalesA little can be profitable.Have to sell a lot in order to be satisfying.Have to sell a lot in order to be satisfying.
TrustIf you apply the right strategy, consumer trust can be built quickly.Consumers trust more in the marketplace, not in businesses that sell products.Took a long time. Unless, you already have a reputation in your personal account.
Consumer LoyaltyConsumers tend to be more loyal. Especially if a business applies a customer retention strategy (members, points, etc.).Consumers can easily run to the next shop if they offer lower prices.Consumers can easily run to the next shop if they offer lower prices.
DataIn-depth collection of business performance data.The data obtained is limited.Limited data analysis features.

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