The difference between an online store and a marketplace

Many people don't know the difference between an online store and a marketplace such as Mercado Libre. When opening a digital business, we need to keep this difference in mind and choose what suits us best: our own online store, a presence on a marketplace, or both.

If you sell food products, you've probably noticed that several marketplaces have sections dedicated to selling them, but… is it really worth bringing our business there?

Let's start from scratch, clearing up doubts and defining some concepts.

What is an online store

An online store is a space on the internet where you can sell products 24 hours a day. Creating an online store isn't hard, since there are platforms that give you one completely free. For example, for selling food products, the best known is Agrojusto. It charges no sales commissions, and you can start selling without paying a cent.

An online store or ecommerce site is your own online space to sell. You don't share it with anyone. It's the digital presence of your brand or products. You offer your buyers a personalized, unique experience.

What is a marketplace

A marketplace is a site where multiple sellers offer products. As we mentioned above, a clear example is Mercado Libre.

To sell on a marketplace you need to register an account and start uploading your products. In that case, there are usually sales commissions or fees for using this type of platform. Shipping usually costs extra and isn't cheap at all (neither for the consumer nor for the seller).

Another feature of marketplaces is that you share space with other sellers who may be selling the same things as you. Everyone competes to stand out and land that coveted conversion.

So…

Where is it better to sell online: an online store or a marketplace?

When deciding where to sell your products online, you should consider:

• Platform costs. As we mentioned earlier, there are free options with no hidden costs, such as Agrojusto. It's only for selling food, but you'll surely find similar options if you sell other kinds of products.
• Digital presence: Consider whether you want your own space to sell or whether you'd rather share it with other brands or entrepreneurs selling the same things as you.
• User experience: This point is essential. Keep in mind that if you want to give buyers a more personalized experience and interact with them without intermediaries, the ideal is to do so from your own online store.

And if you're wondering… could I have an online store and also sell on a marketplace? The answer is YES. Of course you can: as long as it works for you, you should make the most of every resource technology offers.

There are platforms like Agrojusto that let you have your online store and be part of a “food marketplace”. If you sell seeds, preserves, fruits, vegetables, healthy products, etc., you can access an exclusive food Marketplace where you can connect with producers across the country and discover top-quality products and raw materials at very good prices. Good to know.

One extra tip: Make the most of social media, where you have the chance to reach thousands of people everywhere. Update your details, put the link to your online store in your profile bio, and start posting quality content for users.

Conclusion

What matters is that you start building your digital presence today; you decide where and at what cost. It's important to know there are free, practical options to bring your business into the digital world.

It's 2023: it's time to take advantage of technology so we can sell from wherever we are, without logistics headaches, and to the audience we want. Don't you think?