What is an Online Marketplace?
An online marketplace can be an app or a site that facilitates shopping from different sources. The operator of the marketplace does not own inventory, the business however is focused on showing the inventory of other people and facilitates the transaction. There are countless of online marketplaces nowadays that you are for sure aware of and some may even be used to shop.
Because they offer convenience to consumers for the past years, it doesn’t come a surprise that the number of such marketplaces have grown a lot. If you are making a department store today, then it will be an online marketplace or otherwise called as department store 2.0. Because users can access supplier’s inventory easily via electronic means and that the marketplace doesn’t require to own it before they make offers to customers, all the products sold by the suppliers are available to consumers and that there is real time info on the number of supplies for the products sold on online marketplace’s website or application.
Only a handful of consumers will stick with a single app provided by single retailer. They’re more inclined to downloading an app that is offering products with wide selection than one store could provide. That is one of the biggest appeals of such marketplace.
On the other hand, you need to know that there are some downsides to this form of shopping as well. The information is not comparable and delivery speed of sellers are not uniform because the products offered are from different sellers. That may surprise clients in a bad way actually. Making marketplace work seamlessly requires you to draw in numerous suppliers and make things flawless for your consumers which is something that is hard to achieve.
The truth is, vertical, horizontal and global are the three types of marketplaces used by various investors and businesses today. Following is a brief overview of each type of marketplace.
Vertical – a marketplace is considered vertical if it is selling products from multiple sources but all are of one type.
Horizontal – this is a kind of online marketplace that is selling products of different types but sharing a characteristic.
Global – if you want to be in a marketplace that sells everything, then this is what you should be looking after.
There are literally countless of hybrid marketplaces you can find in the internet and tons of companies small and big are allowing users to promote their own merchandises that are now surfacing in multiple ecommerce websites. Assuming that they are functioning pretty well, then the marketplace adjuncts to the ecommerce websites that bring increased traffic and plethora of products.