EBay, which was the first company to play by the marketplace model, is now 22 years old, and it’s safe to say a few internet ages have passed since then. So if they are still running the business, then they must have done something right! Let’s have a look at the eCommerce giant and see if we can find some points to ponder for ourselves. We aren’t interested in its old story, so we won’t go there – we’ll look at it from an organized and updated perspective.
Many other companies have learned and adapted to eBay’s strategies and became successful. Now there exist a lot of similar companies that have the same platform like eBay, offering a marketplace for product sellers. There are also growing companies that allow others a platform to sell not only their products but also their services or unique experiences. We can look around us and see companies like Apple, Google, Uber, Etsy, or Airbnb, all of whom work around the same lines.
Looking at all these companies, we can see how they’ve included their own newer ideas in the basic model and included modern technology with the right user-interface and user-experience designs. They have also adapted their business model to the current world needs and are attracting more and more customers, all online.
A marketplace where there are numerous sellers in one place is cheaper to operate as compared to making and running a website for just one brand. For a marketplace, you need to cater to the sellers as well as the buyers, but it also promises the advantages of having both the parties with you on your platform. It also comes with the added benefit of marketing, as businesses who would like your services would naturally be a source of spreading the good word about your platform.
You Don’t Have To Worry About the Risks
When you sell an item online, it comes with added risks, but with running a marketplace, you don’t have to worry about problems associated with delivery, shipments, storage, or returns, as the sellers worry about these themselves. You just act as the connection between the buyer and the seller, and your job is done – there’s nothing else that you need to get into.
You don’t need to waste your time and stress over the leftover stock, finding the cheapest supplies, or figuring out delivery options. Your business keeps on running itself, and in the meantime, you can think of ways to expand and grow!
The More Competition, the Better!
When you are selling a product, you worry about making it unique and better. However, along comes another supplier with cheaper rates, and then your product becomes common, and you need to make it better. On the other hand, with a marketplace, the more sellers you get with a wider range, the better. You get a variety of products, and you can then serve an even greater range of buyers; hence, you grow.
If you want to build your own marketplace and reap the benefits, let Cloudcafe Technologies help you. We have a team of creative and dynamic individual who can set up an online marketplace for you that you can take to new heights and develop a thriving, profitable business!
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