Welcome to Online Marketplace Apps in 2021
Where would a middle-aged couple go if they needed to purchase new decor for their home? What if a teenager wants to upgrade their style with vintage boots?
Online marketplace apps such as Flipkart, Etsy, and eBay answer these and many other questions.
We have seen many marketplace apps in the market over the past 4 to 5 years. These apps are not only used to sell groceries or fashion; they also serve as a marketplace for all industries.
This blog will discuss marketplaces. It will also explain what they are and the various types of marketplace apps. The goal is to help you start your own marketplace business.
Online marketplace apps such as Flipkart, Etsy, and eBay answer these and many other questions.
We have seen many marketplace apps in the market over the past 4 to 5 years. These apps are not only used to sell groceries or fashion; they also serve as a marketplace for all industries.
This blog will discuss marketplaces. It will also explain what they are and the various types of marketplace apps. The goal is to help you start your own marketplace business.
What does an online marketplace look like?
An online marketplace connects buyers and sellers. The marketplace is populated by sellers who bring inventory while buyers supply the demand. Transactions are the middleman. Amazon transactions are for products, while Airbnb transactions are for houses for rent or space being traded. Capsule transactions are for purchasing medicines.
An eCommerce website is different from a marketplace in that only products and services belonging to one brand can be sold through eCommerce. Marketplaces may have millions or even millions of sellers selling a wide range of products. This huge inventory drives more traffic to marketplaces and gives sellers more exposure.
The world's most successful businesses are those that operate through marketplaces. Amazon's value as of June 2021 is $314 billion. Other major marketplaces, such as Alibaba, eBay, and Uber, are also listed in super-wealthy companies.
The question is, why are marketplaces so valuable?
Market liquidity is the answer. Market liquidity can be defined as the realistic expectation of selling what you list on the marketplace or finding the product you want. Both buyers and sellers get something from the marketplace in this way.
There is also a network effect that marketplaces have. Sellers can sell more products and services if there are more buyers. The more sellers who join the marketplace, then the more significant the inventory available for buyers. This virtual cycle continues as the marketplace matures. This cross-side network effect offers many benefits.
An eCommerce website is different from a marketplace in that only products and services belonging to one brand can be sold through eCommerce. Marketplaces may have millions or even millions of sellers selling a wide range of products. This huge inventory drives more traffic to marketplaces and gives sellers more exposure.
The world's most successful businesses are those that operate through marketplaces. Amazon's value as of June 2021 is $314 billion. Other major marketplaces, such as Alibaba, eBay, and Uber, are also listed in super-wealthy companies.
The question is, why are marketplaces so valuable?
Market liquidity is the answer. Market liquidity can be defined as the realistic expectation of selling what you list on the marketplace or finding the product you want. Both buyers and sellers get something from the marketplace in this way.
There is also a network effect that marketplaces have. Sellers can sell more products and services if there are more buyers. The more sellers who join the marketplace, then the more significant the inventory available for buyers. This virtual cycle continues as the marketplace matures. This cross-side network effect offers many benefits.
- Customer acquisition costs are lower
- Revenue per customer goes up
- Retention of users locked in
There are many types of online marketplaces.
Many marketplace apps cater to different niches online. Although the concept is similar, there are subtle differences. It is essential to know which marketplace you are using because this will affect the shopping experience, which the buyer is, what type of listing the product/service should have, and any other requirements that a marketplace must meet.
Physical Product Marketplaces |
Digital Products Marketplace |
Marketplaces that sell only physical products are called physical product marketplaces. Amazon is the best example. This category includes all other apps that sell shoes or makeup products as well as other physical products.
One thing is essential if you're interested in creating a marketplace that sells physical products. Property And Space MarketplacesYou may know what we mean. You might be right. Airbnb is one of the most well-known startups in this market. This marketplace lets you rent or sell properties, space, apartments, houses, and events. Eventbrite, studio time are two other examples.
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Customers can order digital products online and receive them instantly on their smartphones or computers. Amazon Kindle is one example of a digital product. Users can instantly add an eBook to their Amazon Kindle account when they pay for it. They can then read it whenever they like. Here is the listing of one seller who sells the products.
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