An online marketplace functions as a digital platform that connects buyers with sellers, providing an environment for them to exchange goods and services. These platforms offer a wide range of products, from physical items to digital services, and facilitate transactions between users across the globe. The marketplace owner typically provides tools for listing products, handling payments, and offering customer support. Examples of well-known digital marketplaces include eBay, Amazon, and Etsy.

"An online marketplace serves as an intermediary, simplifying commerce for both small businesses and large enterprises."

Key features of digital marketplaces include:

  • Product listings with detailed descriptions and images
  • Secure payment processing systems
  • Buyer and seller ratings and reviews
  • Shipping and delivery management

Types of online marketplaces vary based on their business models. Below is a table showcasing different marketplace models:

Marketplace Model Description
Consumer-to-Consumer (C2C) Individuals sell directly to other individuals (e.g., eBay, Craigslist).
Business-to-Consumer (B2C) Businesses sell directly to consumers (e.g., Amazon, Walmart.com).
Business-to-Business (B2B) Companies sell goods and services to other businesses (e.g., Alibaba, ThomasNet).