--- title: "eCommerce Platform vs. Online Marketplace: Which One is Right for Your Business?" description: Trying to decide between an online marketplace and an eCommerce platform? What’s the difference? Which is better? --- [Freightcom Blog | Freightcom | SHIPPING.SIMPLIFIED. ](https://www.freightcom.com/blog) # [eCommerce Platform vs. Online Marketplace: Which One is Right for Your Business?](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business) Written by [Brandon Draga](https://www.freightcom.com/blog/author/brandon-draga) | Sep 13, 2021 1:31:01 PM If recent history has proven anything for business owners, it is that having a **meaningful online presence** can be the ultimate tool to survive in the modern market. For instance, Canadian eCommerce sales have amounted to nearly $30 Billion USD this year and are projected to grow **to $40.3 Billion USD by 2025![[1]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftn1)** The fact of the matter is that bringing your business online has **never been easier**! eCommerce platforms have streamlined the process of building an **eCommerce website**, and **online marketplaces** have become a platform for entrepreneurs to jump into the online market with **minimal hassle.** The question is: which of these two options is **better for your business**? Let’s compare and see if there is a clear winner.   ## Sizing Up the Options First, let’s start by defining what each of these options are. An **eCommerce Website **is exactly what the name suggests: a website designed to act as an **online storefront for your business**. These days many businesses utilize platforms such as **Shopify, Magento, and WooCommerce** to build these sites with the necessary eCommerce tools already integrated. On the other hand, **Online Marketplaces** such as **Etsy, Wal-Mart Marketplace, and Amazon Marketplace** are preexisting sites that **host multiple sellers**. This can be likened more to a chain big-box store carrying your products rather than your own brick-and-mortar retail location.   ## eCommerce Websites Put You in Control The key takeaway, both good and bad, when it comes to choosing an eCommerce website over an online marketplace is that, to a certain extent, **everything is in your hands**. To start, you will have **higher upfront costs **that typically encompass **secure hosting, design and development, and payment processing**, and are priced out based on **the size of your business **(how many products and services you are selling), as well as how much business you are doing. What this means, however, is that you have the freedom to **build the site that you want** for your business, putting you in control of the **entire customer experience**. When done right, your website becomes the marketing tool to make sure **your brand stands out** to your customers. In fact, studies have shown that “**73% of people prefer to do business with brands that personalize the shopping experience**”[[2]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftn3). Speaking of marketing, it is worth mentioning that, if your business doesn’t already have a preexisting customer base, a custom eCommerce site, no matter how well built, **will not generate leads by itself**. You must be prepared to **do the legwork** of bringing traffic to your site and **building your customer base**.   ## Online Marketplaces Give You Reach As mentioned earlier, listing your business’ goods on an online marketplace is like getting **physical shelf space in a big-box store**. One of the biggest advantages of listing on an online marketplace is that your business will have access to that marketplace’s **built-in customer base**. Take Amazon, for example. A study from Inviqa showed that **59% of consumers** between the ages of 22 and 40 will **visit Amazon before any other website**[[3]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftn4). That is a lot of potential eyes on your business. The trade-off here, of course, is that yours is **one of thousands of businesses** on any given marketplace. **Lack of branding control** means a customer may not associate your brand with your product and may end up purchasing through a different vendor on the same marketplace down the road! Brand awareness and recognition may ultimately come down to simply **paying for ad space** to boost your brand’s visibility.   ## Staying Within the Margins At the end of the day, the biggest deciding factor in this debate is the **ROI for your business**. We have already touched on the upfront **cost of launching an eCommerce website**. By comparison, most online marketplaces typically have **little to no startup costs**. How do these marketplaces turn a profit of their own? Simply put, from their vendors. Online marketplaces typically have fees associated with storage and shipping, and charge an average of an **11% commission on all vendor transactions**[[4]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftn5)**. ** By comparison, on an eCommerce platform your business **facilitates its own revenue stream**, which means **a larger portion of that revenue goes back to your company.** This proportion of revenue, however, will be reduced when you factor in the cost of customer acquisition through marketing initiatives.   ## Which Solution is Your Solution? All things equal, there are **pros and cons to both** eCommerce websites and online marketplaces. An online marketplace can provide your business **fast, low-cost entry** into the online market, with immediate access to a **preexisting customer base**, and minimal maintenance. However, you will have to face **competition with other vendors**, limited ability to generate leads, and **commission fees** that cut into your profit margin. If you decide on an eCommerce website, you have **end-to-end control** over the customer experience that you offer, although your site will **lack the initial visibility** to quickly grow. Be prepared to **invest upfront for hosting, design, marketing and payment processing fees**, but with no commission fees, you can expect **higher profit margins**, meaning it is possible to quickly see **ROI on your upfront expenses.** The good news is that whichever of these options is the better choice for your business, **Freightcom has shipping solutions for both!** Our platform not only partners with the **leading online marketplaces**, but it also **integrates seamlessly** into eCommerce websites **via major eCommerce platforms**. In addition, if you are not using an eCommerce platform or Marketplace, and have a custom eCommere website, Freightcom also offers a [shipping API](https://www.freightcom.com/help-center?hsLang=en#API). So before you choose how to bring your business online, **contact one of our shipping experts today** at 1-877-335-8740 or at [sales@freightcom.com](mailto:sales@freightcom.com) and make sure that shipping is **one less decision you have to make.** [[1]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftnref1) https://www.statista.com/statistics/289741/canada-retail-e-commerce-sales/ [[2]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftnref3) https://wpforms.com/the-ultimate-list-of-online-business-statistics/ [[3]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftnref4) https://inviqa.com/blog/millennial-retail-trends-online-retail-amazon-era [[4]](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business?hs_amp=true#_ftnref5) https://www.digitalcommerce360.com/article/infographic-top-online-marketplaces/ [View full post](https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business) ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Brandon Draga" }, "dateModified" : "2026-02-09T17:06:32.683Z", "datePublished" : "2021-09-13T13:31:01Z", "headline" : "eCommerce Platform vs. Online Marketplace: Which One is Right for Your Business?", "image" : { "@type" : "ImageObject", "height" : 3222, "url" : "https://f.hubspotusercontent20.net/hubfs/5324278/ecommvsmarketHeader.png", "width" : 6235 }, "mainEntityOfPage" : "https://www.freightcom.com/blog/ecommerce-platform-vs.-online-marketplace-which-one-is-right-for-your-business", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "height" : 60, "url" : "/hs/hsstatic/content_shared_assets/static-1.4092/img/default-amp-logo.png", "width" : 60 }, "name" : "Freightcom Blog" } } ```