close menu

Why does Marketplace become more unreliable than before?

Called as a multi-vendor platform, Marketplace is more complex than businesses of similarly size. Basically, Marketplace works flexibly to accommodate both big brands, young startups or newly established startups. To help you explore the characteristics of Marketplace, we write down the definition and compassion to an online store as below.

Meaning of Marketplace

The Marketplace is a trading square where many companies participate together to sell their products or services to a selected group of customers. The role of Marketplace symbolises combining sellers and the right customers to drive sales. Through Marketplace, sellers have a space that drives visibility and sales of their products – Marketplace owners earn a commission from each sale. On the other hand, an online store is a place that sells its products managed by one retail or company.

A company is limited to a specific geographical location, while Marketplace targets a larger audience on the internet. However, Marketplace will not seek to reach all customers because it needs to optimise budgets and increase revenue.

Marketplace identifies key audiences by going over data from their customer base. This data is quite diverse such as: nationality, ethnicity, religion, education level, occupation, household income, family structure, gender and age.

For example, Amazon divides each segmentation category in line with the following table:

Compare Marketplace and Online Store

Modern trade

When visiting Marketplace, customers look for brands that fall within the shopping category. They analyse factors including purchase price, reputation, reviews… but close the order based on the trustworthy fame of Marketplace.

Organise cost

The Marketplace requires lower maintenance and setup costs than an online store’s website. For example, you might have to contact IT support, or even if you use an e-commerce website creation tool/ plugin, you should pay a subscription fee.


The well-known Marketplace (Shopee, Tiki, Lazada, Sendo .vv) already had an SEO and SERP strategy for product category pages that individual website can not build up immediately. So, your products are more likely seen by customers.

User guideline

Marketplace clearly defines the item delivery process and simplifies the shopping experience to make it much easier for you to start selling.

Separate trade
Online shop

When visiting your online store, buyers look for products that are exclusively listed on your website. They have heard about you or seen your product reviews on search engine results.

Organise cost

An online store requires investment for a website to form up, maintain and develop effectively. Cost is something that you cannot avoid when setting up an online store.


Instead of adopting the marketing benefits given by Marketplace for you (in other words, automated SEO marketing), you have to complete every step from keyword research to creating ads, optimising website conversions.

User guideline

Online store payment gateways require cutting-edge technology. Buyers put their trust in the business because of the security aspects, so you also need to pay attention to hi-tech payment gateways with high reliability.

In recent times, Marketplace’s consumer protections have not received the same attention as traditional websites.

Safety alarm about Marketplace

Unknown items are sold through vendors on Marketplace (headphones, phone chargers, desks and bookshelves). Safe products are too little to buy but unsafe products are being sold in abundance. Typically, Marketplace will make its commitments and internal terms focused on product safety, but these commitments are temporary, limited in scope, and vary by company.

On the momentum of internet development, Marketplace is expanding and becoming the favorite choice of many shopaholics. Super-affordable prices, “sale hunting” opportunities, and a wide range of selections are highlighted on Marketplace’s website, but the consumer protections are forgetting.

E-commerce transactions are expected to be worth £4.1 trillion by 2023, up from £1.5 trillion in 2016. Alongside the growth of e-commerce, online marketplaces have been particularly successful offering consumers additional convenience and choice. Many marketplaces now account for a significant proportion of online sales in countries around the world.

However, consumer policy and enforcement have not yet caught up with new consumer behaviours and business practices. As a result, gaps in regulation, uneven enforcement, and insufficient crossborder co-operation can leave consumers at risk, and responsible businesses undercut. Millions of consumers are increasingly open to buying potentially harmful products via marketplaces and from
sellers whose safety standards are largely unregulated.

Consumers International members all over the world are reporting the effects of these developments. Online marketplaces create a particular challenge for regulators. By offering consumers access to a range of sellers through an online platform and providing services such as payment services, review hosting and fulfilment, marketplaces have created a new model of retail that escapes the traditional definitions that have been used in regulation. The ability of sellers from other countries to use platforms to sell their products in new markets can also make it difficult to enforce product safety regulation. Source: Consumer International


To win back customers, Marketplace should actively monitor, ensure that the wrapping pack, covering box are in compliance with standards, and pay attention to product communication activities, take out poor quality products, and promptly notify customers of the happening incident.