A marketplace is a business model that focuses on facilitating commerce between buyers and sellers.
Marketplaces are entirely based on diversity where different sets of products and services offered by a wide range of third-party merchants to a large number of buyers.
In simple word, local market, shopping malls are the example of a conventional marketplace. In these places the buyer finds different brands of products coming from multiple merchants underneath the single place. This helps the buyer to find the most reasonable price for the best quality product.
Therefore, traditional marketplaces give a possibility for selling/ buying diversity of products, the ability to bargain/buy the goods at for more reasonable and affordable price.