Marketplace ecommerce

Marketplaces in plenty today. You have Amazon, Alibaba and a whole lot more retailers selling every products that you can imagine online. However, for a newbie expecting to establish a marketplace, the challenges are many. For one, the challenge is to keep the costs low Major challenge is to driving in profits while keeping the cost low. The other constraints can relate to maintaining proper stocks and logistics, which can indeed mean that the company need some good planning.

With businesses looking to leveraging more and attracting more profits, it makes sense to understand the different types of marketplaces out there today. Marketplaces offer a great way to sell products to customers or even add in variety of products to improve their catalog. Moreover, these marketplaces help you to get in direct touch with the buyers and sellers, and so helps to bring down costs significantly.
This means that entrepreneurs are looking forward to open their own marketplace to woo in more visitors. If you think that opening a marketplace can be just right for you, here is a look at the different types of marketplaces out there today.

Types of Marketplaces

Marketplaces have evolved over time, with the focus on offering quality products and services at affordable rates. The thrust is to make all areas and aspects of buying, an easy one. Normally, the developments of marketplaces have been there for both normal end user customers and for businesses themselves. Here is a look at both of these marketplaces.

B2C Marketplaces

The common type of marketplace is the B2C marketplaces, where businesses market their products to consumers. Amazon is not just one of the B2C marketplaces but there are thousands more. One of the advantages of a B2C marketplace is that end users can pay to the seller directly. The seller can reach out to a wider audience. There can be one centralized payment system for everything and the competition among sellers will mean that the price remains competitive.

B2B Marketplaces

In B2B marketplaces, different businesses come together under one platform. There is everyone, from suppliers to manufacturers, to distributors and exporters. Most look to trade with each other, with necessities varying from raw materials to services and to other products. Sellers come to an agreement by their own and in most of these marketplaces, there is no centralized payment system. Customers have to often order in bulk to save more and merchants in these marketplaces can set their own terms.

C2C Marketplaces

There is a third type of marketplace as well. Here consumers can sell in their goods to other consumers and don’t need a business to do it for them. For instance, there are a number of marketplaces that allow users to sell their smartphones or other items they own, to other consumers just like them, who are interested in the product.One of the primary examples of such a marketplace exists in eBay where users can sell a product they have, to another user. In fact, eBay is both a B2C and a C2C marketplace, in the sense that they allow both businesses to sell to customers and consumers to sell a product among themselves.


Marketplace Business Model


The marketplace business model can be just right if you’re tying to start an eCommerce business. It can help consumers and businesses find all that they need, under one roof. You can ensure that customers can find trusted products in the marketplaces while operators, buyers and sellers will all have a win-win model. With the streamlined eco system of the marketplace, every stakeholder will have more confidence and faith in the sytem, ensuring that all issues are quickly and aptly solved.


The Benefits of a Market Place

You, as the operator, can decide upon all the factors that will make your marketplace successful. This can include deciding upon factors like the level of control sellers have over transactions and how to make the payments. You can ensure that the marketplace runs smoothly and take care of the different issues that can arise with time easily. As an operator, you’re sure to receive both direct and indirect benefits.


Revenue Benefits

The other important benefits from the revenue side are below.





Yet, while the going might seem easy, it may not necessarily be so. For one, remember that there will be many competitors of yours. You will need to create a marketplace that’s technically advanced. This means that the marketplace should reward the sellers for their actions and be effective for marketplace sellers. You cannot look for profits in the beginning while you build up your customer base, as sellers will always compare your site with that of your competitors.

The platform also needs to have effective monitoring of the systems so as to ensure that buyers and sellers are satisfied. Check all activity indicators like sales, transactions and returns and address complaints effectively. Create a solid technical base to ensure that there are no problems when it comes to making purchases and make sure that you can adapt the marketplace to user preferences.

You will need good integration within your site to ensure maximum uptime and no problems related to finances or payments. Finally, you will need a marketing strategy to ensure that you attract the buyers and sellers. This can be especially difficult in the beginning as sellers would always like to sell on a marketplace with more buyers and buyers would want more sellers.

As an entrepreneur, you will be able to benefit by opening a marketplace only if you take care of these problems.


From the 1990’s, when we first saw the rise of Amazon and eBay, the eCommerce market has grown into a huge business. With computers becoming a household necessity, you can easily create a sales funnel by investing in eCommerce. There are no limitations of physical trade and while stock and logistic problems still exist – you can avoid that if you have your own marketplace!

Amazon changed how eCommerce is done today, with everything being done in a structured and secured way, with Amazon itself having little headaches about logistics. There are more stocks and marketplace operators can earn more. There is less investment for sellers and a wide variety of choice for customers – running a marketplace can just be a great investment.