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The peer to peer, also known as P2P, is a computer network in which all aspects (or most of them) work with a series of nodes that behave in the same way towards each other and without clients or fixed servers. In this way, any kind of information is exchanged directly between the computers that are interconnected.
This definition can be a little difficult to understand without computer knowledge, so it can be helpful to break down the concept of “what is a peer to peer” with some examples from the Marketplace that use this network. Here we go.
Peer to peer: Examples
When we talk about Peer to peer we often come to mind programs like Emule, where you can share all kinds of files and find others for your own use. And so it is.
For Marketplace P2P, on the other hand, it may not come to your head. However, there are many more of these types of businesses today than you might think:
- In the world of transport, we find Blablacar or Uber.
- In tourism is Airbnb, which operates in 190 different countries.
- In second-hand purchases, we have Wallapop, Ebay or Vibbo.
If you stop and think about how P2P works at Wallapop, for example, you see that everyone can be customers and suppliers and have access to the same information (the products). That’s clearer, isn’t it?
Peer to peer: Advantages
A few days ago we published in this blog four reasons why Marketplace Peer to Peer (P2P) fail. They must be very clear to benefit from the advantages explained below, as falling into them (especially when creating a Marketplace) can result in a significant loss of money.
Advantages Peer to peer as a buyer
- As there are no intermediaries, prices are cheaper.
- Most apps are for sharing expenses or finding second-hand products, which still makes them cheaper channels.
- In one place you can find many different options for what you are looking for.
Advantages Peer to peer as a seller
- It is not necessary to pay to advertise, as it will appear as one more option.
- The number of buyers who can get to see the product or service offered is quite large, especially in the successful Marketplace.
- In the P2P there is no need to pay commissions to intermediaries.
Advantages Peer to peer as Marketplace creator
- You don’t have to worry about shipments or product flows.
- You can choose the business model that suits you best.
- You create a community that feels identified with your Marketplace.
If the business idea of your Marketplace was to charge a commission for each transaction, you should offer safe methods to your users. The most reliable is escrow. It is that the payment is not made directly to the seller, but to a deposit. Until the buyer receives the product, this money is not transferred to the seller, thus avoiding all types of fraud. If you are interested in knowing more about this type of payment, contact Marketpay without any kind of commitment!