Difference Between Amazon and Amazon Marketplace

There are two distinct parts of Amazon working as one entity: Amazon.com and Amazon Marketplace that not many people notice while shopping. Amazon Retail and Amazon Marketplace as a manufacturer, wholesaler, distributor, brand or retailer.

Amazon vs Amazon Marketplace

The main difference between amazon and amazon marketplace is that amazon is basically a customer-oriented e-commerce platform that enables customers to buy products of huge varieties whereas amazon marketplace is a seller oriented platform that facilitates anyone to sell directly to the end-user or online customer. Amazon takes a referral fee from each sale that they make.

Amazon vs Amazon Marketplace

When we are shopping from Amazon.com, we are buying directly from Amazon’s complete product inventory and individual sellers.  

It offers its customers a much wider product choice from numbers of external sellers and enables price comparison to keep the platform competitive. Amazon Marketplace is so well integrated into Amazon.com, a lot of customers don’t even realize they are purchasing from third-party sellers.

Comparison Table between Amazon and Amazon Marketplace

Parameters of ComparisonAmazonAmazon Marketplace
OverviewIt is a major website or e-commerce platform that sells everything to its customers.It is the third-party retailer market that offers its customers a much wider product choice from numbers of external sellers and enables price comparison to keep the platform competitive.
ServiceIt does not allowIt allows sellers to resell used and new items.
ConnectionAmazon is an independent company.Amazon Marketplace is an integrated section of amazon.
ChargesThere are no such charges in Amazon.It charges a specific sum as a fee from its seller.
BrandingGoods which are bought directly from Amazon.com are amazon’s own branded products.In the Amazon Marketplace, all kinds of products are sold.

What is Amazon?

Amazon.com is the world’s largest online retail platform and a prominent cloud services provider. In 1994, Jeff Bezos established amazon as a book seller platform.

The headquarter of amazon is located in Seattle, Washington and united states. The company provides services such as  customer service centers, software development centers, individual websites and fulfillment centers all around the world.

It is one of the big five companies in the U.S. information technology industry, along with Microsoft, Google, Apple and Facebook.

Amazon has a display store website for over a dozen different countries and its ship to nearly every country in the world. It also hosts the retail websites of several brands such as Marks & Spencer, Sears Canada, Lacoste, and many others.

amazon

What is Amazon Marketplace?

Speaking of Amazon Marketplace, it is an e-commerce platform owned and operated by Amazon. It enables third-party sellers to sell used or new products on a fixed-price with the help online marketplace alongside Amazon’s regular offerings.

Items purchased from third-party sellers on amazon are either fulfilled by Amazon (FBA) or fulfilled by the merchant (FBM). FBM goods are kept with the third-party seller in their inventory, and shipping and customer service are handled by the third-party merchant itself.

Many suppliers use the Marketplace to introduce new products with greater control over prices. It is also referred to as a good way to sell slow-moving items, such as last year models or accessories.

There are four steps involved in the working of the amazon marketplace:

  1. Create an account on Amazon Seller Central.
  2. Add your product sheets to Amazon’s marketplace..
  3. Manage your orders
  4. Dispatch your orders.
amazon marketplace

Main Differences Between Amazon and Amazon Marketplace

  1. Amazon is a massive online retail and cloud service provider, as against, Amazon marketplace is a third party retail market integrated into amazon itself.
  2. Amazon is a customer service provider that offers its clients a large variety of goods from all across the world. On the other hand, Amazon Marketplace is a seller service provider that offers small individuals or groups of individuals/ businesses to display and sell their product at a fixed rate on an online platform.

Conclusion

Amazon the website itself is an online sales site similar to the major retailers we shop from on a daily basis, like Wal-Mart. Marketplace has a larger variety of items to purchase as it offers thousands of sellers to offer their product for sale.

References

  1. http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.368.5065
  2. https://www.sciencedirect.com/science/article/pii/S0019850113002150
  3. https://academic.oup.com/jeclap/advance-article/doi/10.1093/jeclap/lpz061/5610029
  4. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606055
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