Future of the Online Marketplace

The online Marketplace is an online platform where different vendors of various shops and businesses sell their products and services to several customers without involving any third party. In comparison, the third party is supposed to focus on shipping and manufacturing. The future of the online Marketplace is very similar to offline shops, where various shop owners attract their customers in one place. 

Although, the online marketplace has now become a more trusted platform for shopping. You would be amazed to know that more than 47% of online shopping is held on the online marketplace. This is why many online marketplace development companies are developing of their variety, and some reliable advantages are given below:

Types of Online Marketplaces

 

Along with the sharing economy, the Marketplace is getting popular every passing year, such as Uber and Airbnb. There are a total of three types of Marketplace that are given below:

Horizontal Marketplace

This kind of Marketplace is established to provide a wide range of services with good products. Some good examples of the horizontal Marketplace can be seen as Aliexpress, Allegro, and eBay. In which eBay will have a turnover of around 10 billion dollars in 2020.

Vertical Marketplace

The core target of the Vertical or Contrary Marketplace is to focus on a special type of branch, service, niche or industry to provide the best quality to their customers. It has multiple examples like:

 

• Transportation services
• Marketplace for professional services and skills
• Marketplace for short-term accommodation
• Marketplace for Innovative ideas
• Medical Marketplace
• Fashion marketplace
• Cars marketplace
• Agriculture B2B marketplace
• Travel marketplace
• Recruitment marketplace
• Furniture and handmade goods

 

In simple words, the vertical marketplace can be used in any business that you can ever think of.

Models for Alternative Marketplace 

 

• Managed Marketplace

They provide more attractive payment methods that are beneficial for both parties. With the addition of managed Marketplace, the company can create new demands with new traffic that were not targeted before. The best example of a managed marketplace is Beepi. 

• Community driven Marketplace 

A marketplace driven by Community is more than just an online shop as it introduces nice people through their website. Etsy and DevianArt are the best examples where artists can interact to buy their art pieces with good interaction, where Etsy has generated 6 million new Shoppers in 2020. 

• SaaS-enabled Marketplace

This Marketplace is supposed to bring huge new traffic to the online shop by using SaaS (Software as a Service). This model of the Marketplace is somewhat similar to open-source software like Magento and WordPress. 

Extrinsic advantages of Marketplace

 

• Simplistic logistics over e-Commerce

A traditional online retailer provides end-to-end experience to their customer, whether it is the process of ordering or delivering. The Marketplace is responsible for any damage by the delivery man, manufacturing, stocking, and safe transaction.

• The various platform of money earning

Many are here to earn money with marketplaces such as commissions provided to the merchant. The platform owner can also allow the merchant to pay for site exposition, delivery, and ads system. 

• Advantages from scales

When the Marketplace owner provides support to the buyer with logistic options, they experience excellent customer engagement. 

What is the view of an investor before investing in the Marketplace?

Every investor looks for the benefits before they invest in anything, either in the short term or long term. As per the reports of VersionOne Venture Capital, the investor should invest in the Marketplace due to the following reasons:

• Straightforward Frequency of transactions

Gaining traffic means nothing if they are not using your platform. So encourage your customers to use the platform.

• The complete available market

Market size and their potential walks together if the market is more prominent, the potential will be high. 

• Large fragmentation

The market should have a huge no. of merchants as well as buyers to make a successful platform.

• Discovery relationship for buyer or seller

Let the buyer explore your website and eliminate all the obstacles while exploring. The time of exploring may increase the chances of making a purchase. 

 

How can the Marketplace make a lot of money?

There are different ways to make money on the Marketplace that are given below:

• Lead generation

The Marketplace can target lead generation by sending e-mails or private offering messages to their customers to get benefits. This process is more common in the B2B vertical marketplace and Magento 2 migration services.

• Forging partnerships 

Making purchases for any finances or additional products will deliver service packages for the merchants and customers. 

• A reliable pricing strategy

The pricing factor of the Marketplace is not to get the highest margins at products but to maintain a balance between quality, the engaging nature of the platform, and their earnings. 

 

Future of Online Marketplace 

There is no doubt in saying that the shining future of the online Marketplace is not so far because over 37% of buyers repeatedly purchase from online Marketplace and we can also consider various online marketplace development companies for their bright future Whereas it is going to introduce some following trends:

 

• Modified functionality

In the internet world, the best always win, whether it is any game or online market. And this is the reason various companies are looking for new niches and markets to introduce an impressive marketplace for its users. So, we can expect to have a new marketplace in totally unexpected niches.

 

• UX delivery

The secret to getting new traffic is excellent user experience. There are several ways to earn money in the Marketplace like commissions, merchant’s price, or any other legal way. 

• Marketplace with AI

AI is merged with the largest Marketplace, Amazon, and with small and start-up enterprises due to the increasing availability of customization, computing power, and automation. 

 

Summary 

We hope that the above guide would be helpful to understand every aspect of the Marketplace and why an investor should invest in it. Although it is difficult to establish this business and gain tremendous traffic, it is also important to mention here that it is helping millions of people earn their daily bread through Shopware 6 migration services. 

 

Author Bio:

A creative and passionate mobile application enthusiast with over 10 years of experience in providing IT solutions across various industries. Nitesh Behani is the Co-Founder of Magneto IT Solutions, a full service of Mobile App, shopware 6 migration services , Magento migration experts, online marketplace development company in USA, India, and Bahrain. He has experience of delivering more than 100 projects ranging from Custom Ecommerce website development technologies to mobile application technology.