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Ecommerce has changed the way we shop, with online retail offering a huge range of products at affordable prices. You can buy almost anything online nowadays – from cars to cosmetics, books and food. Purchasing online can be daunting with so many options. Let's have a look at the differences between traditional stores and some marketplaces and how they stack up.

What are Major Retail Chains and Marketplaces?

Major retail chains are traditional businesses with a large physical walk-in store presence. They sell products they have sourced, generally from distributors and manufacturers. These stores can are chains like JB-Hi-Fi, Bing Lee, The Good Guys, Officeworks and Harvey Norman. They focus on the physical retail experience of shoppers and offer products online too. 

Marketplaces like eBay, Amazon or Kogan act as middlemen between sellers and buyers. They allow third party sellers to list their products on their site, and buyers to purchase these products through the marketplace. It can be tricky to figure out who the actual seller is on some marketplaces. Marketplaces such as Amazon and Kogan sometimes source and sell the products directly themselves; so it is well worth a few extra clicks to try and figure out who you are actually purchasing from when you buy from one of these sites. Once you actually figure out who the seller is, checking out some independent review sites for that seller is recommended. The upside is that you can find some real bargains and a huge range of products compared to traditional physical retail stores!

How do you compare marketplaces such as eBay, Amazon and Kogan?

Amazon and eBay are both major marketplaces. They have similarities such as allowing third party sellers to utilise their platforms and review driven feedback models. There are also some differences.

eBay was initially a platform where individuals dominated the offerings on the site. Auctions were the main way to sell products on the platform. This model has evolved to what it is today. Retailers account for a large portion of the sellers now using the platform and buy now as well as auction options and strategies are in use.

Setting up an account to sell on eBay is relatively simple. This results in you finding a range of different sellers using the platform, from large retailers to individuals operating out of a garage. You may find bargains with such a range of sellers, but quality and consistency may be an issue. Having said that, the model creates opportunities for some good deals for buyers that are mainly driven by price.

Amazon started with books really well and took that expertise and knowledge, applying it to become the successful business that it is today. Amazon has more selective criteria to become a seller on their platform. The majority of sellers are businesses that use the platform either solely or in conjunction with their existing ecommerce store. This allows Amazon better control to maintain the quality of the offerings.

Amazon also offers business warehousing solutions to maintain and improve the delivery proposition for customers. Customers are also allowed to subscribe to the platform for cheaper and faster delivery options. As with any marketplace though, it is worth being aware who you are buying the product from and what warranties and return policies are offered as they may vary.

Kogan started out as an ecommerce retailer and expanded its range to have the large online presence that it has in Australia today. It used different warehouses around the globe to aid the delivery proposition for consumers, and in recent times it has added the option for retailers to sell their products through Kogan as a marketplace. While customers may not think of Kogan as a marketplace, it does allow retailers from different industries to use the platform as such. Some retailers on there are even based overseas. Again, it is always worth being aware whether you are buying directly from Kogan or a business using the site as a marketplace to sell its own goods. It is also good to know if the business is local or overseas as that may impact delivery and returns. This model is becoming a popular way for online retailers to operate.

How does Recompute compare and what sets Recompute apart from other retailers?

Recompute offer the best of both worlds. They are an online store with the option to view and collect items from their main warehouse. Businesses such as Recompute bring the world of online retail and traditional retail stores together. Recompute is not an online marketplace. Businesses such as Recompute have industry experts handpick the models that they offer customers. They specialise in niche parts of an industry with a focus of adding value to consumers. Generally, the models offered through specialist retailers such as  Recompute are business grade models. These are built to a higher standard than the basic retail models that are often found in traditional major retail stores, auction sites or marketplaces.

This model allows for a consistently high quality seller experience. Pre- and post-sale support and service tends to be more consistent as the seller is in direct contact with their customer. Whilst this retail model may not give customers the range that is offered through a marketplace or larger retail chain model it does have many advantages. The Recompute model allows for more control over the quality of the products, the delivery proposition, the after sale warranty and service delivered to customers. Again, as with any retailer, we recommend checking out some independent reviews before taking the plunge and dishing out your hard-earned money.

If you need any help finding a refurbished laptop or computer, feel free to visit www.recompute.com.au or email us at sales@recompute.com.au

Ultimately, there's no right or wrong way to purchase online. You'll quickly find that there are a lot of options that are available to you. As a consumer, that is a win. Consider all your options and figure out which one is the best for you.