A platform that connects independent sellers with buyers is best described as which model?

A platform that connects independent sellers with buyers is best described as which model?

• A. E-commerce Retail
• B. Marketplace and Platforms
• C. Software as a Service
• D. Payment Processing Service

Answer: (B)

Connecting independent sellers with buyers is a marketplace model. A marketplace platform acts as an intermediary that brings together sellers who list goods or services with buyers who search and purchase them, without typically owning the inventory. The platform earns revenue through commissions, listing fees, or payment-related fees, and it benefits from network effects—the more sellers, the more buyers, and vice versa. Think of sites like Etsy or eBay that host many independent sellers in one place. This differs from e-commerce retail, which usually involves a single retailer that owns or curates the inventory and sells directly to customers; a payment processing service, which handles payments but doesn’t host a buyer–seller marketplace; and Software as a Service, which is about delivering software over the internet, not about connecting buyers with multiple sellers.

Connecting independent sellers with buyers is a marketplace model. A marketplace platform acts as an intermediary that brings together sellers who list goods or services with buyers who search and purchase them, without typically owning the inventory. The platform earns revenue through commissions, listing fees, or payment-related fees, and it benefits from network effects—the more sellers, the more buyers, and vice versa. Think of sites like Etsy or eBay that host many independent sellers in one place. This differs from e-commerce retail, which usually involves a single retailer that owns or curates the inventory and sells directly to customers; a payment processing service, which handles payments but doesn’t host a buyer–seller marketplace; and Software as a Service, which is about delivering software over the internet, not about connecting buyers with multiple sellers.