online marketplace
Online Marketplace: a website or app where many different sellers list goods or services for buyers to find, compare and pay for, all in one place.
In plain English
Ngozi used to sell shoes from a small shop in Aba, waiting on foot traffic that came and went with the weather and the price of fuel.
Then her daughter set her up on an online marketplace, listing the same shoes with photos taken on a phone against a white bedsheet.
Within a month, orders were coming from Lagos, Abuja, and one memorable Tuesday, from a woman in Manchester buying for her sister's wedding back home.
An online marketplace works like a big shared shop. The platform, whether Jumia, Amazon, or Etsy, does not usually own the shoes, the phone case, or the ankara fabric being sold. It simply builds the shelves, handles the till through a payment service provider, and takes a cut for bringing buyer and seller together.
For the seller, this means reaching people you would never meet by standing outside your own shop. For the buyer, it means comparing five sellers of the same item in five minutes, checking reviews, and choosing on price or trust rather than whoever happens to be nearest.
The trade off is that the marketplace is a gatekeeper too. It sets the rules, the commission, and sometimes the mark up you can charge, and if your account gets suspended, your storefront disappears overnight.
Ngozi sells a pair of shoes for ₦18,000 on the marketplace. The platform takes a 10 percent commission, about ₦1,800, and pays the rest into her account through its payment service provider after the buyer confirms delivery.
Questions people ask
Do I need my own website to sell on an online marketplace?
No. That is the whole point. The marketplace provides the storefront, search, and payment system, so you can start selling with just a smartphone and clear product photos.
How is an online marketplace different from an online shop like a brand's own website?
A brand's own website sells only that brand's products. A marketplace hosts many independent sellers side by side, competing for the same buyer's attention on one platform.
Is it safe to buy from small sellers on these platforms?
Mostly yes, because reputable marketplaces hold your payment until delivery is confirmed and let other buyers leave reviews, so a seller with a poor track record is easy to spot before you pay.
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