The marketplace is the stage where merchants can meet up to offer their products or services to a potential customer base. The marketplace owner brings the right vendors and right customers to drive sales through the platform. Below are some of the key features of the marketplace that attracts digital entrepreneurs.
No Inventory
Marketplace vendors are the large business owners that offer catalogs, and typically more inventory than online stores. Does this imply they are more enthusiastic to oversee? Not obligatory. On the contrary, online store owners have their own stocks and inventory. They need to spend more on stock acquisition and managing it.
Marketplace owners just need to ensure that the sellers are dealing with the guidelines and the rules Adding to this, some marketplaces also offer inventory management solutions at affordable rates. This makes the marketplace easier and more profitable than the other models when it comes to managing large inventory.
Enhanced Customer Satisfaction
When running an online store, there are many aspects to deal with: inventory management, social media, sales, marketing, customer service, and much more. In a variation, when operating the marketplace, the main aim is to focus on the users: vendors and customers they sell to. This means marketplace owners can truly focus on adding value for their users and optimizing the marketplace.
Also, it doesn’t imply that running a marketplace is simple. A ton of work goes into content curation and balance. You have to focus on the specific niche that includes the right product. Having so many vendors under one roof makes the marketplace interesting and the customers can find cheaper products.
Scalable Model
The marketplace is truly a great example of the scalable business model, and some of the biggest companies prove it. For example, Uber does not own their cars, Airbnb does not own any apartments, and Amazon does not own most of the goods and services it sells. Yet they are the best in their respective industry.
In fact, the marketplace is ruling the universe of online business. According to the research, online marketplace revenue is expected to double by 2022.
