Posted in Marketing and Strategy Terms, Total Reads: 1762

Definition: Marketplace

It is a platform where product/ inventory information is provided by multiple third parties whereas the main transactions are processed by the marketplace operator. It is an economic system where companies compete with each other in order to sell their products.

It consists of buyers and sellers who interact with each other in order to facilitate an exchange. The price of the product varies as per supply and demand. Marketplace is not necessary to be a physical marketplace. It can be online based stores or auction stores as well, for example: ecommerce websites.


Restrictions in FDI investments have forced etailers to shift its business model from inventory based model to marketplace model which results in less control over service quality.


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