How do online marketplaces work?

Updated June 12, 2026 · Good Circles

An online marketplace connects many sellers with many buyers on one platform, handling discovery, checkout, and payments, and taking a cut of each sale. Most charge 15–30%. A community marketplace like Good Circles keeps the structure but charges a 1% fee on profit and routes value back to the local economy.

The basic mechanics

A marketplace provides the storefront, search, payments, and trust layer so individual sellers don’t each have to build their own. In exchange, it takes a commission on each sale. The bigger the platform’s leverage, the larger the cut it can charge.

How marketplaces make money

Most marketplaces earn a percentage of every transaction — commonly 15–30% — plus listing or payment fees. That’s efficient for the platform but expensive for small sellers operating on thin margins. See how Good Circles is funded »

What a community marketplace changes

A community marketplace keeps the convenience but realigns the economics: merchants keep 89% of profit on a 1% fee, shoppers save about 10%, and a share of every sale funds a local nonprofit. More on community marketplaces »

A marketplace built for local

Same convenience, different economics — see how the money moves.

How it works

FAQ

How do online marketplaces make money?

Most take a commission on every sale — commonly 15–30% — plus listing or payment fees. Good Circles instead charges a 1% fee on profit.

What makes a community marketplace different?

A community marketplace keeps the convenience of an online marketplace but routes value locally: merchants keep 89% of profit, shoppers save about 10%, and a share of every sale funds a local nonprofit.