A shark needs to swim, otherwise it will drown. Successful businessmen know this simple fact. Merely 20 years ago customers considered themselves lucky to be able to shop online without leaving home. Nowadays it is much more difficult to impress potential clients. They do not want to waste their time and effort on shopping, and where the demand goes, the offer must follow
Therefore, it is no surprise, that multi vendor sites and marketplaces have become a major trend of the 21st century. Create a marketplace, and you get all the customers no longer satisfied with the limited services of the old school e-commerce sites.
If you already have an e-commerce website or an online service you might ask why you would need to create a marketplace. The main argument in its favor is the ability to function without an inventory. After all, you simply assist both sides of the transaction(a seller and a buyer) to find each other, acting as a virtual middleman.
Other advantages are connected to this middleman role. Most of the arrangements and responsibilities are fulfilled by the seller, whilst the marketplace takes care of marketing and develops the functionality of the platform itself to make it easy and quick to use. Therefore, the margins are higher than those of a traditional site.
Unlike online stores based on a popular CMS, like Wordpress or Opencart, marketplaces boast broader functionality. Comparing prices, finding the best options and completing secure transactions while staying on the same web page are the hallmarks of a great online shopping experience. Marketplaces also allow multiple sharing possibilities. After finding a hidden treasure, a user can share it with his tribe and attract more paying customers for sellers, creating a viral effect and increasing sales figures.
It might seem that only the chosen ones can make a successful online marketplace. Actually, this business model can be applied to any industry or niche. Here are some examples that might surprise and motivate you:
These are just a few examples of successful marketplaces, most of which evolved from ambitious startups. There are also great platforms in Consumer Goods, Real Estate, Hospitality, Food and even Personal Productivity.As you can see, whichever market you plan on conquering, making sure you create a great marketplace for it can turn your venture into a huge success.
Let’s say you decided to launch a startup and build your own revolutionary marketplace. What do you need to know to choose the right type? Depending on what the marketplaces sell, they are divided into three categories:
Another way to categorize marketplaces is by their participants.
If you’re asking yourself how to start an excellent online marketplace, there are three ways you can do it.
We hope you now realize that starting a marketplace is a sure way of evolving your business and increasing the revenue, as well as starting a new company. And the best part is that you do not have to do anything if you decide to order a ready-made or custom-made marketplace by RadeMade. Contact us now, and we will fulfill your business needs.
Launch a profitable marketplace
Every step of the marketplace development process is explained by domain experts in the series of articles.In addition, some first-hand accounts of running a marketplace are featured in the interviews with the founders.Explore the steps
Learn to build a marketplace
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