The world of the Internet opens up an immense range of possibilities when it comes to creating businesses. Originality and good business vision allow you to earn money in ways you might not have imagined a few years ago.
One of the businesses that are causing furore is the Marketplace, both to create them and to be in them. As many people know that name but don’t know exactly what it refers to (despite knowing many examples), let’s explain what a Marketplace is and what benefits it has for your pocket.
What is a Marketplace?
A Marketplace is a platform where individuals and companies can sell their products or services and buyers can get hold of them.
As we explained in our article about everything you need to know before starting a Marketplace, do not confuse it with an online store, as sellers and buyers are outside the platform and transaction between them. In e-commerce who sells is the company behind.
Within this simple definition, there can be many variants. The business models of a Marketplace (commissions, subscriptions, Freemium, etc.) or the sector they deal with (second hand, transport, accommodation, etc.) are two of the key characteristics that define them. To give an example:
- Vibbo, Milanuncios or Wallapop are examples of a second-hand marketplace between private individuals.
- Blablacar, Amovens or Uber, transport.
- Airbnb, for accommodation.
- Freelancer, working.
Benefits of being in a Marketplace
Whether you have a business or a private individual, online Marketplace is a great way to boost sales. Among the most obvious advantages are:
You don’t need to have your own website. It represents a saving not having to create a platform, integrates a payment method and maintains it.
You save on advertising. It is the Marketplace that is in charge of promoting itself and the better they do it, the more visibility you will have.
You reach a lot of people. It is true that there will be a lot of competition, but there will also be many users interested in buying your products. Maybe you forget about payment and shipping. There is some Marketplace that takes care of everything and, usually in exchange for a commission, manage cumbersome parts such as the process of payment and shipping.
Benefits of creating a Marketplace
If what you want is not to sell in a Marketplace but to create your own, you must have clear ideas. Think about what sector you are going to focus on, what competition you are going to find and how you are going to make money. Once this is done and you are convinced, click here and find out how much it usually costs to create a Marketplace.
The main benefit of having a Marketplace is that you only have to worry about maintaining and promoting your platform. The raw material, negotiations and all the other details are dealt with by sellers and buyers.
If your Marketplace will incorporate a payment and shipping system (for example to charge commissions for each transaction), you must choose a method that gives users confidence. And the safest available is escrow. This means that the payment is not made directly to the seller, but to a separate deposit account (thus avoiding that the payment is made and the seller disappears). When the product reaches its destination or the service is completed correctly, the money is transferred to the seller. Contact us and we will explain all the details on how to incorporate it into your Marketplace.