What Is A Marketplace Platform?

What Is A Marketplace Platform?

What Is A Marketplace Platform?

“A Marketplace Platform is a form of e-commerce that connects potential buyers and sellers all within one platform to help rent, buy, swap or negotiate.”

Traditional e-commerce platforms were not built to handle the multi-vendor model in which marketplaces carry. With multiple buyers and sellers, marketplaces make it seem-less to transact with one another.  

What are the different types of marketplaces?

E-Commerce: Transactions that are conducted online.

M-Commerce: Transactions that are conducted on a mobile device.

Peer-To-Peer: Decentralized model that brings individuals to buy or sell goods and services directly without the interference of a third-party.

Business-To-Consumer(B2C): Platform that conducts transactions between business to consumers only.

Business-To-Business (B2B): Platform that conducts transactions between business to business only.

Consumer-To-Consumer (C2C): Platform that conducts transactions between consumers to other consumers only.

Crowdfunding: Platform that allows the practice of seeking funds or capital for a new business venture.

What are the different classifications of marketplaces?

People People based marketplace where people can connect with subject matter experts and interact with specialists.

  • Ex: Upwork, Freelancer, TaskRabbit

Products– Product based marketplace where people can buy and sell products.

  • Ex: Etsy, eBay, Amazon

Places– Places based marketplace where people can buy, rent, or swap property.

  • Ex: Airbnb, Spacer, HomeAway

Projects– Project based marketplace where people can collaborate, contribute, and share.   

  • Ex: Linkedin, Facebook Groups

Hybrid– A combination of any of the classifications noted above.

  • Ex: Craigslist, LetGo, OfferUp

Partners– Master Franchise and Franchisees

Why have marketplaces platforms become so successful?

Here are a few simple answers:

  • Ease of shopping or booking from the comfort of your own home.
  • Safe and trusted environment for both buyers and sellers.
  • Eliminates the middleman, saving money for both parties.
  • Creates a frictionless experience for consumers.

When is a good time to build a marketplace platform?

Building a marketplace platform won’t happen overnight. Your platform will never be “perfect”. Getting started early will help you work out the bugs and identify any changes that need to be made. Our advice? Conduct your research and get started right away.

What does it take to build a marketplace platform?

  • Securely Hosted Tools
  • Eye-Catching Storefront
  • Marketplace Management
  • SEO Friendly
  • Technical Support
  • Payment Gateways
  • Analytics Tools

Who can help build a marketplace platform?

There are many great platform providers that provide the software solution to help get you up and running. A few of the solutions are Near Me, Arcadier, and IZBERG. To find out more providers, check out marketplace platform providers.

Marketplace Platform Resources:

Also see our related E-commerce category and sub-categories: