For years, marketplaces have been one of the easiest ways for small businesses to enter e-commerce. Platforms such as Amazon and Flipkart allow sellers to list products on an established platform and reach customers who are already shopping online. According to ONDC's guidance, a marketplace model connects buyers and sellers through an e-commerce platform, with the marketplace charging fees for its services.
ONDC Resources
This makes marketplaces attractive for businesses that are just starting out. Sellers do not necessarily have to build their own website from scratch, attract every customer themselves or create an entire e-commerce infrastructure before listing their first product. Marketplaces can therefore be useful for testing products, reaching new customers and understanding online demand.
But there is another side to the marketplace model. A business is operating inside someone else's ecosystem. The seller's products appear alongside thousands of competing products, while the overall shopping experience, platform rules and customer journey are largely controlled by the marketplace.
This is where having your own online store becomes important.
An independent online store allows a business to create its own digital identity. Instead of customers simply buying from a marketplace, they can discover the business through its own website, brand name and online presence. Platforms such as Shopify, for example, provide businesses with their own storefront, inventory management, marketing tools and analytics.
Shopify
However, building an independent store traditionally meant dealing with several separate requirements: website development, product catalogues, payment gateways, marketing, logistics and other operational processes. For a small retailer with limited time, money or technical knowledge, managing all these pieces can become a challenge.
The good news is that the e-commerce ecosystem is becoming easier for small businesses to enter. ONDC, for example, says sellers can onboard once and reach customers across multiple commerce destinations, while providing cataloguing, logistics and onboarding support through its seller network.
ONDC
The choice, therefore, does not necessarily have to be marketplace versus online store. A small business can use marketplaces for customer discovery while gradually building its own digital presence and customer base.
This is where factori.com can fit into the picture.
factori.com is designed around simplifying the process of starting an online business by bringing key parts of e-commerce together. Instead of a business owner having to figure out every technical and operational step separately, the platform aims to make it easier to create an online store, access products, accept payments and manage fulfilment.
For a small business owner, the bigger question is not simply “Where can I sell?” but “What kind of business do I want to build?”
A marketplace can be useful when the priority is accessing an existing customer base. An own online store can be more valuable when the priority is building a recognisable brand and having greater control over the customer experience.
For many businesses, the smartest approach may be to use both. Marketplaces can help generate reach and discoverability, while an own online store can become the long-term home of the brand.
As India's digital commerce ecosystem continues to expand, small businesses have more options than ever to move beyond the boundaries of a physical shop. The challenge is no longer simply getting online; it is choosing the online model that gives the business the right combination of reach, control, brand ownership and long-term growth.