Everything About Online Marketplaces
An online marketplace can be an app or a site that facilitates shopping from different sources. For the operator of the marketplace, it doesn’t have any inventory and instead, their business is more about showing the inventory of other business to their users and then manages the transaction. There are many online marketplaces today that you probably are well aware of to which in fact some you’re using to buy and sell stuff.
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. Since users can easily access the inventory of the suppliers digitally and that the marketplace does not need to own it before making offers to consumers, all products are sold by suppliers are available to the consumers and there’s real time info about the number of supplies for products sold on the online marketplace’s app or site.
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. The truth is, this is one of the most sought after feature of this marketplace.
But not all are leading to positives because like any other form of marketplaces and services, there are some drawbacks about it too. 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 the marketplace work flawlessly means drawing in many suppliers at the same time and make things seamless for consumers which is quite hard to do.
As a matter of fact, there are three kinds of marketplaces today and these are vertical, horizontal and global. In the next lines, you’ll learn a quick overview of each type.
Vertical – a marketplace is considered vertical if it is selling products from multiple sources but all are of one type.
Horizontal – this is a type of online marketplace that sells products of varying types but shares a characteristic.
Global – and as what the name indicates, this is a kind of marketplace that is selling everything.
There are tons of hybrid marketplaces online and many companies both small and big allow users to offer their own products in these marketplaces that are mushrooming on different e-commerce sites. Assuming that they function well, that marketplace adjunct to ecommerce page that then offers myriad of products and increased traffic.