When you’re planning to start an online business, one of the first decisions you’ll face is what kind of platform you actually need. Should you build a traditional e-commerce store where you sell your own items? Or should you create a marketplace where many sellers can list their products, like Etsy, Amazon, or eBay?
These terms get mixed up a lot, but they represent two very different business models – each with its own setup, features, and management style. Understanding the difference will help you choose the right approach before you invest time and resources into building your website.
Below is a clear breakdown of what sets e-commerce and marketplace sites apart, plus how you can use UltimateWB’s built-in apps to create either one (or both!).
What Is E-commerce?
An e-commerce website is a store where you – the site owner – sell products directly to customers. All items come from your business, and the customer’s buying experience is centered around your brand.
Key characteristics:
- You control the inventory
- You set prices and handle promotions
- You manage order fulfilment
- You receive payments directly
- All customer service comes through you
This is the simplest and most direct online selling model.
Building E-commerce with UltimateWB
If you’re selling only your own items, UltimateWB’s built-in E-commerce App gives you everything you need out of the box:
- Shopping cart + checkout
- Inventory management
- Shipping options
- Digital downloads
- Subscription/recurring payments
- Product reviews
- Related products
- Coupons, promotions, and more
Everything is integrated – no searching for plugins, no compatibility guessing, no subscription upsells. Just turn it on and start adding products.
What Is a Marketplace?
A marketplace is a platform where multiple sellers list their products or services. Think Etsy, Amazon Marketplace, or eBay.
Instead of being the only seller, you create the environment where sellers can sign up, post their items, and make sales. Your revenue may come from:
- Listing fees
- Commission per sale
- Featured ad upgrades
- Subscriptions for seller tiers
Key characteristics:
- Many sellers, many listings
- You control the platform, not the inventory
- Sellers manage their own items and fulfilment
- Requires seller accounts, permissions, policies, and moderation
Marketplaces are powerful, scalable, and community-driven – but they require more oversight than a simple store.
Building a Marketplace with UltimateWB
To create a multi-seller platform, UltimateWB includes a full Classifieds / Marketplace App.
This gives you:
- Multi-vendor listings
- User accounts with seller permissions
- Item management dashboards
- Featured listings
- Paid upgrades
- Commission models
- Messaging system
- And even built-in auctions
It’s truly a feature-packed system, letting you build something comparable to Craigslist, Etsy, OfferUp, or eBay – all without extra add-ons.
What About Auctions?
UltimateWB includes a powerful, category-based Auction System that goes far beyond basic bidding. Auctions can be enabled per category and support both traditional sales and service-based bidding models, making it extremely flexible.
UltimateWB Auction System Features
- Increasing-bid auctions for selling items or decreasing-bid auctions for service quotes
- Ability to charge extra for posting auction-type listings
- Optional Buy Now price for instant purchases
- Auto-bidding (proxy bidding), allowing users to set a maximum bid
- Customizable bid increments and auction durations (global or per listing)
- Optional auction preview period before bidding starts
- Automatic auction extension if a bid is placed near the ending time
- Rules to allow bidders and/or sellers to cancel bids or auctions
- Optional requirement for users to have credits in their account to place bids
- Fully customizable date and time formats for auction start/end and bid history
This system works seamlessly within the marketplace/classifieds app and can be used for:
- Physical products
- Digital goods
- Local services
- Competitive price discovery
- Quote-style service requests
Why This Matters
Most website builders treat auctions as an afterthought or require external plugins. UltimateWB’s auction system is deeply integrated, configurable, and flexible enough to support multiple business models – from eBay-style listings to service bidding platforms.
E-commerce vs Marketplace: Quick Comparison
| Feature | E-commerce (Single Seller) | Marketplace (Multiple Sellers) |
|---|---|---|
| Who sells? | You only | Many independent sellers |
| Inventory | Managed by you | Managed by each seller |
| Branding | Your store + products | Your platform + seller brands |
| Revenue model | Direct sales | Commission, listing fees, seller plans |
| Complexity | Lower | Higher (sellers, moderation, payments) |
| Best for | Selling your own products | Creating a platform for others to sell |
Which One Should You Choose?
Here’s how to decide:
- Choose E-commerce if you’re selling only your own items and want a streamlined, branded shopping experience.
- Choose Marketplace if you want to build a platform where others sell their own products or services.
- Choose Auctions (or add auctions) if bidding is part of your model – like collectibles, limited-edition items, resales, or competitive pricing.
- Use both if you want a hybrid platform (e.g., your own store + sellers + auctions).
The best part? UltimateWB gives you all three models built in, so you don’t have to switch platforms later if your business grows or changes direction.
Final Thoughts
E-commerce and marketplaces serve different purposes, and choosing the right format is key to building a successful online business. If you want simplicity and control, go with a single-seller store. If you want growth and multiple revenue streams, a marketplace might be the better route.
Whichever you choose, UltimateWB has the built-in tools for it – from e-commerce to classifieds to auctions – making it one of the most flexible and powerful website builders for modern online businesses.
Ready to design & build your own e-commerce website or marketplace? Learn more about UltimateWB! We also offer web design packages if you would like your website designed and built for you.
Got a techy/website question? Whether it’s about UltimateWB or another website builder, web hosting, or other aspects of websites, just send in your question in the “Ask David!” form. We will email you when the answer is posted on the UltimateWB “Ask David!” section.