Advantages of Online Marketplaces Versus Classified Sites

by Jerry JuaE-commerce
Jun 12, 2020


While Googling the best place to sell items online, I found that there isn’t a clear explanation of what differentiates an online marketplace from a classified site. 

In essence, a seller posts their items for sale in each site, but the end result is different. If they aren’t the same, then which is better?

So, what is the main advantage of online marketplaces versus classified sites? The main advantage of an online marketplace is that sellers post items for sale, and they are sold. In a classified website, products are listed for sale but are never sold online.

Knowing this difference, is online shopping better than the traditional shopping? Online shopping is more convenient for buyers. They can see if items are in stock in there favorite color and size, making it a hassle-free purchasing experience compared to traditional shopping.

The fact that sellers can’t sell on a classified site directly to buyers intrigued me greatly. I decided to learn what other advantages online marketplaces may have.

Since I’ve posted items for sale on both in the past, I would like to describe my experiences with these two platforms.

Benefits of Selling in an Online Marketplace

I’ve noticed that online marketplaces tend to give significant exposure to items that sellers post for sale; this from prior experience.

Online marketplaces tend to invest in publicity to drive traffic into their site, so buyers arrive at the products without much work from the individual sellers. Moreover, online marketplaces invest in having their site SEO friendly, mobile-friendly, safe, secure, and always up and running.  

Perhaps some of my favorite features of online marketplaces are that: items have a buy now button, are listed with inventory (if applicable), they possess the ability to send and receive messages between buyer and seller, can manage their active & sold items, and can even receive feedback from buyers.

Apart from the perks mentioned above, an online marketplace can provide “paper trail,” so to speak, of the transaction. The paper trail may have a description of the item that was purchased.

This comes in handy if there is ever an issue of not receiving an item as described. If the buyer wants to get their money back, they can submit this as evidence to their credit card company.

Learn more about online marketplacesHow do online marketplaces work?

Selling on a Classified Site

A classified site lets sellers only expose their items for sale. It is more of an advertisement site that sellers use to gain leads. If sellers would like to sell their items, they would need to convince the buyer to meet somewhere and make the purchase. 

Purchases never happen online and aren’t protected in any way.

Classified sites typically don’t invest as much into publicity as online marketplaces do. This is not to say that there aren’t any big classified sites that splurge on marketing. They might invest, but not nearly as much as an online marketplace would.

This is because online marketplaces make so much money from all the fees they charge.

Why Try a Classified Site?

When selling online, the more exposure you can give to your products across various sites, the more likely you will make a sale. Thus, it makes sense to try out all types of online venues to sell your items. 

For this reason, you could consider posting your items on classified sites.

Let’s take a closer look at the advantages and disadvantages of classified sites.

Advantages of a Classified Site

  • In certain classified sites, sellers can post for free.
  • They are mainly used to sell locally.
  • Classified posts can be about a service your company offers and a product.

Disadvantages of a Classified Site

  • Sellers can’t make a sale online.
  • Mainly for local sales.
  • Classified post expires every 30 days, and sellers have to repost items regularly.

Search results display both items and services rendered, making it tedious for buyers to find your products. In other words, when you search for an item, you view service and item posts simultaneously.

Where Would My Items Perform Better?

I sell on both classified and online marketplaces. I believe that each one has its limitations regarding how well your items will perform or sell. It will ultimately depend on the amount of stress that you would like to bear. I say this because selling online does add to your daily stress.

Classified Selling – Personal Experience

To understand what I mean by each has limitations and added stress, let me explain. I once started buying cellphones online. I would receive, inspect, and resell them locally. 

Since I was buying them online, I could not compete with the online market, but I could compete with the local vendors.  

This was back in the day when online classified sites were barely starting.

I would then list the cell phones in the local newspaper, take pictures, and post them in an online classified site. I would get leads from both the newspaper and the online classified site.  

Everything was done by phone. Then, you finally met with the buyer in person, and the purchase was finalized.

That may sound easy, but in reality, what were the logistics of getting there?

Selling via a classified site back then required you to post the item with your phone number so interested parties can call you. Then later, see each other in person, and complete the sale. 

So now imagine picking up the phone various times a day and giving it all you got as a sales rep for your item. I would get my hopes up to pull in a sale, and then nothing.

In addition, driving somewhere to meet up with a potential buyer, only to find that they don’t like the color, price, or even the quality of the product box can get tedious. Another sale that didn’t go through.  

The stress does pile up because you want your money back with earnings so you can continue investing.  

That’s just one issue.

Now, imagine doing your due diligence and purchasing various phones.

Let’s say you have an inventory of items that local sellers just don’t want to buy. The color is not what they had in mind. The price is too high, and so on. 

It may be what they are looking for, but not at their budget. While holding on to this inventory, let’s say you find a deal where you can purchase more phones at a discounted price. 

You are now unable to because your current inventory hasn’t sold. It does get stressful if you don’t know what you’re doing.

Online Marketplace Personal Experience

On the other hand, if you sell through an online marketplace, your stress levels can drop significantly.  

Let’s say you have purchased a pallet of brand new, unused, sealed, Redken hair products. The pallet was left at a warehouse. The owners didn’t pay warehouse fees, so the company decided to sell it for pennies on the dollar just to get rid of it. 

You have now purchased an item that can sell both locally and in an online marketplace.

After trying to sell both locally and online, you decide to sell only online because you don’t have the time to be meeting up face to face with buyers.

You decide to use stock images that are online of the particular item you are selling to give a better quality picture than the ones you take with your cell phone. Now paste an impressive description of your item. List it with an aggressive price and include shipping (free shipping). Also, build consumer confidence by accepting returns after 30 days and done. 

Then, while you are off at work or sleeping, your items could be sold.  

Any interested party could potentially message you before making the purchase. If they are convinced no messaging required, buyers click the buy now button. Your item has been sold, and money is sent to you electronically. 

Now, the item, as per your description, is shipped via the carrier you specified.  

The only stresses you may encounter are that answering too many messages about your item or a buyer requires a refund. One of the most unpleasant situations in an online sale is if the buyer requests a refund. 

That is if you decided to list your item with a refund policy. 

Other than that, selling via an online marketplace, in my personal opinion, is more advantageous than a classified site.

Click here to learn more about the advantages of an online marketplace over a traditional business.

Tips and Tricks While Buying and Selling Online

Buying Tricks

  • Always haggle for that item you are buying, no matter how inexpensive it may be.
  • Stick to the desired amount you’d like to spend and don’t go further.
  • Don’t let emotions get the best of you and don’t overspend.

Selling Tricks

  • Bundle items when selling. Buyers are more prone to purchase when they see a bundle deal.
  • Always research the amount you will be selling your item at and decide what’s the lowest you would like to go on each item. In case a buyer haggles for it, you’d know what the least amount is that you would be willing to sell it.
  • All sales are good sales as long as you’re making your money back.

Buying and Selling Tips

As a recommendation to anybody who would like to buy and sell online, it is always good practice to haggle. By asking the seller for the best price they have, you could save some money. 

Even if you are buying it dirt cheap, always ask, “What’s the best price?” You have nothing to lose.  

That is something I learned the hard way. I purchased some inventory a bit too high and had to take a loss to get rid of the extra stock that would not sell.

I had to cut my losses short and move on. The less you pay for inventory, the more you make, or less you lose, if you need to sell at a discounted price.

Let’s say you purchase an item that is worth one thousand dollars for one hundred dollars. Does that mean that you can sell it for what it’s worth? Yes, but probably no, because you wouldn’t be able to offer the same guarantee as if the buyer would be buying the item brand new. 

So, you lower the price to six hundred and fifty, for example.  

Anybody that may have an interest would be buying an item worth one thousand at a fraction of the cost. Now let’s say that it’s not moving and you want to make your money fast, you can go all the way down to two hundred dollars. 

At a discounted price, it will now sell fast, and you’d still made a profit. 

Learn where you can sell onlineWhere can I sell online for free: a seller’s guide.

Learn what to look for at thrift stores: Top 7 things to look for at thrift stores to resell.

Conclusion

It doesn’t get any easier than selling online via an online marketplace.  

It is more convenient, less of a hassle, and faster to sell than if you were to use a classified site.

If you are looking to buy or sell at a new online marketplace, check out the platform Sheepbuy. Unlike other marketplaces, Sheepbuy does not charge a per-transaction fee to sell or any hidden fees.  

You can start selling free of charge, and if you’d like to dominate your niche, it’s only a small monthly fee ranging from $2.99 and up. No contracts ever, and you can cancel at any time. 

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