P2P(Peer to Peer) marketplace refers to the platform which connects the buyers and sellers. In this case, both parties are consumers. Airbnb and Upwork are some of the best examples of it.
Understanding the P2P model
Your P2P marketplace can be anything like an eCommerce platform or service platform. You can possibly offer things to buy, rent, or grant a loan on it. You will need to decide on the P2P revenue model which we are going to discuss below. Most of the marketplaces charge commission and other fees. Let’s take Airbnb charge payment fee and static fee.
P2P Business Models
Here are some of the great ways you can make money running P2P marketplaces.
One-Sided Commission
This business model refers to the charging of commission from whoever is the seller of that product or service. For example, there is a marketplace of the used products, that charges the fee from the sellers, and the buyers need not pay anything.
Two-Sided Commission
This business model also refers to the charging of commission but from both parties. I.E. Sellers and Buyers. Airbnb is the perfect example of it. Airbnb is the platform where one party hosts their houses for getting the rent and the other party lives in that house by paying the rent. Whenever the transaction happens, it charges the commission from both parties homeowners and customers respectively.
Advertisements Model
Be it a buyer or seller both are regular individuals. They might not be comfortable with sharing the revenue as the commission. So you can waive off the commission and make the money by showing the ads on the site. If this is the model you like then CPI, CPC, PPC is your way to go.
Paid Promotions
This revenue model is most feasible in most business models. You have an option to offer the paid promotion service to the sellers. Once you get your charge, then you can put them into the featured listing. This will offer them better visibility on your marketplace. If they are getting the visibility they won’t mind paying more. As this will help them sell their items easily. eBay and Etsy are some of the best examples of such listings.
