marketplaces

Marketplaces are platforms that enable buyers and sellers to discover, compare, and exchange goods or services. They provide listing infrastructure, payment processing, and often dispute resolution, as well as ratings and reviews that help reduce information asymmetry. Marketplaces can be digital, physical, or hybrid, and operate across models such as B2C, C2C, and B2B. They may be horizontal, offering many categories, or vertical, focusing on a specific sector such as electronics, fashion, or hospitality. Two-sided networks create value as participation grows, because more buyers attract more sellers and vice versa.

Key components include onboarding and trust and safety, payment and escrow options, logistics and fulfillment, and data analytics to guide decisions. Marketplaces may monetize through commissions on transactions, listing or subscription fees, and value-added services such as advertising, reputation programs, or logistics support.

In practice, marketplaces differ from traditional retailers in that they do not typically own the goods or services sold; instead they act as intermediaries that connect supply with demand. They can host professional or casual sellers, facilitate freelance work through service marketplaces, or link consumers with service providers, accommodations, or gig workers.

Regulation and governance address issues such as competition, platform liability, consumer protection, privacy, and data rights. Challenges include trust, counterfeit or low-quality listings, price transparency, dependency on the platform, and potential market concentration. Marketplaces have become a central feature of the digital economy, improving price discovery and market access while reshaping competition and distribution channels.