E-commerce & Marketplace Launch: Choosing Between Direct Site, Marketplaces, or Hybrid for Global Expansion

Written By: Jagriti Shahi 

Expanding into global markets has become faster and more accessible than ever, but brands still face one critical decision: How should they sell online? Should they launch through their own direct website (D2C), rely on third-party marketplaces, or choose a hybrid approach that blends both?

Each path unlocks different advantages in speed, cost, customer control, and scalability—and the right choice depends on your market readiness, resources, and long-term global ambitions.

This article breaks down the three models and helps you choose the best approach for your international launch strategy.

Global E-commerce Landscape: The Big Picture

• In 2025, there are an estimated 2.77 billion online shoppers worldwide — roughly 33% of the global population.

• Global e-commerce sales in 2025 are projected to reach US$6.42 trillion – US$6.86 trillion, depending on the data source.

• In 2024, online retail crossed a critical threshold: e-commerce accounted for ~20.1% of global retail sales.

• By 2025, online purchases are estimated to represent ~21% of total retail sales globally, with projections of ~22.6% by 2027.

• Over 28 million online stores are active globally as of 2025 — a testament to how accessible online commerce has become.

• Mobile commerce (m-commerce) continues to dominate: in 2025, mobile devices (smartphones, tablets) account for a major — and growing — share of ecommerce traffic and orders globally. 

What does this mean? The global shift to online retail is real and accelerating. A large and growing population shops online. This makes launching globally — whether via direct site, marketplace or hybrid — a viable, high-potential move for many brands.

1. Direct Website (D2C): Full Control, Higher Effort

Launching a dedicated website gives brands complete authority over branding, customer experience, pricing, loyalty programs, data ownership, and margins.

Advantages

• Full control of brand narrative – design, product stories, and customer journey.

• Higher profit margins, no marketplace commissions.

• Customer data ownership for retargeting, personalization, and long-term value creation.

• Flexibility in pricing and product testing without platform-imposed rules.

Challenges

• Requires heavy investment in marketing, SEO, logistics, and customer support.

• Slower traction, especially in new or competitive markets.

• Complexity in cross-border fulfilment, payments, and tax compliance.

Best For

Brands with strong brand recognition, repeat-purchase products, and long-term globalization goals.

2. Online Marketplaces: Fast Entry, Lower Control

Marketplaces like Amazon, Walmart, Alibaba, Flipkart, or Mercado Libre provide instant access to large ready-made customer bases. For many brands, marketplaces act as a low-risk entry point into international markets.

Advantages

• Immediate reach to millions of customers.

• Lower upfront cost for traffic and acquisition.

• Trusted checkout, logistics, and return processes.

• Faster product validation in new regions.

Challenges

• High commissions (15–25% depending on category).

• Limited brand differentiation—competition sits side by side.

• No ownership of customer data; retargeting is difficult.

• Marketplace rules can restrict pricing, content, and promotions.

Best For

New brands entering a foreign market, companies testing demand, or product categories that depend on high marketplace search volume.

Marketplace vs D2C: Market Share & Trends

Understanding how much of that huge online business happens via marketplaces vs direct (brand) websites helps frame strategic choices.

• According to recent studies, marketplaces account for roughly 70–80% of all e-commerce sales globally (as of 2024). startupwired.com+1

• On the other hand, D2C (direct-to-consumer brand websites) currently command only about 10–12% of global e-commerce sales in 2024. startupwired.com

• Forecasts indicate that D2C’s share could rise to ~15–20% by 2030, driven by growing demand for brand authenticity, direct engagement, and personalized experience. startupwired.com

• Even though marketplaces dominate volume, the number of independent e-commerce sites (D2C or small-seller) has soared — contributing to a more diversified ecommerce ecosystem globally. Market.biz+1

Interpretation Marketplaces remain the major highway for online commerce. But D2C is growing as a niche — especially for brands that emphasize identity, customer relationships, and control. For many companies, D2C represents a long-term play rather than a volume-first strategy.

3. The Hybrid Approach: The Most Popular Model Today

A hybrid strategy combines the speed of marketplaces with the long-term strength of a D2C website. Brands use marketplaces for expansion and discovery, while the direct website becomes the home for deeper engagement and loyalty.

Advantages

• Balanced revenue streams; marketplace drives volume, D2C builds brand and data.

• Risk diversification—if marketplace policies change, the brand still controls its own store.

• Stronger brand equity through a controlled D2C experience.

• Insights from marketplaces guide better pricing, inventory plans, and localization for the website.

Challenges

• Requires synchronizing inventory, pricing, customer service, and marketing across channels.

• Risk of channel conflict if pricing differs.

Best For

Most modern consumer brands aiming for scalable, global expansion with reduced risk.

How to Choose the Right Model for Global Expansion

A. Consider Your Market Readiness

• Strong brand + capital → D2C

• New brand + low capital → Marketplace

• Mixed readiness → Hybrid

B. Evaluate Local Competition

If marketplaces dominate a region (e.g., Amazon EU, Mercado Libre LATAM), starting there offers faster traction.

C. Assess Operational Capabilities

• Can your team handle global shipping, returns, and customer support?

• Do you have local marketing or distribution partners?

D. Look at Long-Term Goals

• Want customer data and control? → D2C or Hybrid

• Want rapid, low-risk entry? → Marketplace

Conclusion

There is no single “right” method for global e-commerce expansion. Direct websites offer control and long-term value. Marketplaces bring speed and lower risk. Hybrid models provide the strongest balance for brands aiming to scale globally.

As global commerce evolves, brands that strategically combine platforms, adapt to local buyer behavior, and build a unified customer experience across channels will win the next phase of global e-commerce expansion.

Global Launch Base helps international startups expand in India. Our services include market research, validation through surveys, developing a network, building partnerships, fundraising and strategy revenue growth. Get in touch to learn more about us.

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