What is a marketplace: how it works, types, pros and how to sell

A marketplace is a digital platform where different sellers offer their products or services to the same buyers, while the platform takes care of the storefront, payments and operating rules. It is not the online store of a single brand: sellers pay to be there, usually with a commission per sale.

The model grows alongside e-commerce. Brazilian e-commerce generated R$ 235.5 billion in 2025, up 15.3% from the previous year, with 94.2 million buyers, according to Abiacom, in data published by Mercado & Consumo.

And, at the end of this guide, we show that the concept also applies to digital products.

What is a marketplace?

The word marketplace comes from joining two English words, market and place: it is, literally, a place for a market. The concept is old and familiar, like a fair, a city market or a shopping mall, just taken to the digital environment.

The marketplace’s central role is that of an intermediary. In the pure model, it does not need to manufacture or stock what it sells: it connects those who want to sell with those who want to buy and charges for the intermediation. That explains why it became one of the most common entry points for online businesses.

How does a marketplace work?

A marketplace works around three pillars: the platform, the sellers and the customers. Each one has a role:

• the platform mediates transactions, sets the rules and offers two types of access, one for sellers and one for customers;
• the sellers register products, prices and promotions and are responsible for the information about what they sell;
• the customers browse a catalog much larger than that of a regular store, compare prices and buy without leaving the platform.

In practice, a sale usually follows this path:

1. the seller lists the product on the platform;
2. the customer finds the product through search, category or an ad;
3. payment is made inside the marketplace;
4. the product is delivered by the seller or by the platform itself, depending on the model;
5. the platform passes the amount on to the seller, deducting the commission and fees.

Logistics vary a lot. In some marketplaces, each seller ships their own orders; in others, the platform offers storage and delivery as a service. For those who run the platform, the work involves attracting buyers with ads and content, tracking metrics, ensuring seller quality and taking care of customer loyalty.

Marketplace vs. your own online store: what is the difference?

Your own online store (the brand’s e-commerce) sells only that company’s products; a marketplace brings several sellers together on the same platform. One is like a street shop; the other, like a shopping mall.

In e-commerce, the relationship is B2C (business to consumer), directly from the company to the consumer. In a marketplace, the B2B2C model is common: the company sells to the consumer through another company, the platform owner.

What are the types of marketplace?

Marketplaces can be classified by the audience they serve, the variety of their catalog and the type of offer. The three criteria combine: a marketplace can be B2C, horizontal and sell physical products at the same time.

By audience

• B2C (business to consumer): companies sell to individuals, the most common model in online retail;
• B2B (business to business): companies sell to other companies, such as suppliers of materials and equipment;
• C2C (consumer to consumer): individuals sell to each other, as on platforms for used items.

By catalog variety

• horizontal: brings together products from many categories, from electronics to clothing;
• vertical or niche: focuses on one segment, such as crafts, fashion, books or auto parts.

By type of offer

• physical products, which require stock and delivery;
• services, such as transportation, lodging, food delivery and hiring professionals;
• digital products, such as online courses, e-books and mentorships, delivered over the internet, with no stock or shipping.

Pros and cons of selling on a marketplace

The main advantages of a marketplace are visibility and low startup cost for sellers, and variety and convenience for buyers; the disadvantages are commissions, price competition and low loyalty to your brand. For small and mid-sized digital entrepreneurs, it is a way to gain ground in the online market without building everything from scratch.

Advantages for sellers

• access to an audience that already visits the platform, with no need to attract every visitor;
• borrowed credibility from the marketplace brand, which helps with the first purchase;
• you benefit from the digital marketing actions run by the platform itself;
• low startup cost, with no need to build your own website or payment system;
• reports to track sales and KPIs.

Advantages for buyers

• many options in one place, with comparison of prices, brands and reviews;
• centralized payment handled by the platform;
• the chance to buy from several sellers in a single visit.

Disadvantages and precautions for sellers

Selling on a marketplace also has costs and risks. The main precautions are:

• commissions and fees, which can eat into profit if the price is not well calculated;
• direct competition with other sellers on the same page, often decided by price;
• low brand recall, because customers tend to remember they bought “on the marketplace,” not from which store;
• dependence on the platform’s rules, algorithm and changes;
• limited access to customer data, which makes it harder to build a relationship after the sale;
• the risk of concentrating all your revenue in a single channel.

That is why many businesses combine the marketplace with their own channels, such as a website, social media and email.

How much does it cost to sell on a marketplace?

The cost of selling on a marketplace depends on each platform’s pricing model, which usually combines a commission per sale with other fees. The most common models are:

• commission on each sale, with a percentage that varies by product category and listing type;
• monthly fee or subscription plan to get more features or visibility;
• fixed fee per item sold, usually for lower-priced products;
• shipping and logistics costs, when delivery goes through the platform;
• sponsored ads inside the marketplace, to appear in the top positions.

Since these amounts change often, always check the marketplace’s official page before joining. And work out the margin of each product with all the fees included: it is common to find that an item that looked profitable barely pays for itself.

How to sell on a marketplace: step by step

To sell on a marketplace, decide what to sell and where, sort out the tax side, list your products at a price that covers all the fees and take care of your reputation. The first three steps are the ones that most prevent losses: that is where you decide what to sell, where to sell and whether the tax side is in order.

1. Define what you will sell and to whom

Choose products with demand that you can deliver with quality. Researching what already sells well on the platform helps you understand prices, competition and the buyer profile.

2. Choose the right marketplace

Compare each platform’s audience, accepted categories, costs and requirements. A niche marketplace may bring fewer visitors, but buyers more interested in what you sell.

3. Sort out the tax side of the business

Check whether the marketplace requires a business registration and invoicing for your category. Being formalized also makes it easier to receive payments and grow safely.

4. List your products with good photos and descriptions

Clear titles, quality photos and complete descriptions help the product show up in the platform’s searches and convince the customer. Include measurements, materials, deadlines and everything that answers the most common questions.

5. Set the price considering all the fees

Add up the product cost, commission, fees, shipping and taxes before setting the price. That way, you avoid selling a lot and earning little.

6. Take care of customer service and reputation

Answering quickly, meeting deadlines and solving problems improves your reviews, and good reviews increase sales. On many marketplaces, reputation also affects the position of your listings.

7. Track results and promote

Use the platform’s reports to see what sells most and adjust prices, ads and stock. Promoting your listings on social media and combining different sales strategies helps you avoid depending only on the marketplace’s traffic.

Main marketplaces in Brazil

The main marketplaces in Brazil, such as Mercado Livre, Amazon, Shopee and Magalu, sell products from many categories, but the model also appears in niches, services and digital products. Here are the best known:

Is there a marketplace for digital products?

Yes. The marketplace concept also applies to digital products: a digital products marketplace brings together online courses, e-books, mentorships and subscriptions in the same storefront, with automatic delivery over the internet, with no stock and no shipping.

The model fits well with the digital market: the same product can be sold many times, without restocking after each sale. See also the types of digital products you can create.

The Hotmart Marketplace, an all-in-one platform for creators who want to create, sell and scale digital products, works like this: those who want to buy find courses, e-books, mentorships and other digital products, and those who want to be affiliates find products to promote and earn commissions. You can learn more in how Hotmart works. In practice, it connects three profiles:

• producers, who list their products, set the price and commission and use the platform’s structure to sell, get paid and deliver the content;
• affiliates, who choose products on the storefront to promote and earn a commission per sale, using indicators such as temperature, which shows which products are selling well;
• buyers, who find products by category, pay at checkout and access the content in the members area.

An important difference from physical product marketplaces is the pricing model: there is no monthly fee or fee to list the product, and Hotmart charges a fee only when a sale happens. See the Hotmart prices for details. If you want to start by promoting other people’s products, see how to be an affiliate at Hotmart.

Start selling online

A marketplace is a practical way to start selling online: the platform already has an audience and structure, and you focus on the product and on customer service. The key is to choose the right channel, do the math with all the fees and not put all your sales in one place.

If you have knowledge to share, you can sell digital products with no stock or shipping. On Hotmart, you create your free account and put your digital product on the storefront. Create my free account.