Nowadays, consumers are gradually reaching out to online markets to find what they need daily. Indeed, electronic commerce has become essential for sellers to develop their activities. This is why many companies want to try and create an online marketplace - for retailing - like Amazon, eBay, Alibaba, and others. Are you planning to create your marketplace? This article is your practical guide.
What are the different types of online marketplaces?
Let's start by defining the type of Marketplace. Currently, there are three main groups:
- Vertical marketplaces: they bring together several sellers who specialize in the same niche.
- Horizontal marketplaces: these marketplaces sell goods in several categories, but which are united by a common characteristic.
- Global marketplaces: they sell everything to everyone. There you will find a wide range of product categories and many sellers.
It is up to you to choose the type of market that suits your needs and which can potentially generate the maximum return on investment.
How to make money with a marketplace?
If you want to create a marketplace, here are the most common ways to make your investment profitable:
- vendor subscriptions;
- commissions on items sold;
- guidance fees/revenue generated;
- affiliate programs;
- The advertisement.
Note that all the market giants generally have a wide range of services in addition to their marketplaces. For example, Amazon - which is one of the best known in this area - also has Amazon Go, Amazon Web Services, and physical stores.
On which platform to create your marketplace?
Currently, there are many software or applications that allow you to help you in creating your marketplace: WordPress, Prestashop, Magento... The advantage of these is that they help you and quickly create your place Steps. However, although this option has many benefits, such as letting you manage the project as you wish, you can immediately find yourself faced with difficulties related to the project or your needs.
Thus, you need to seek the help of a web agency to make your project a reality. In fact, in addition to web developers, you will need to call on a project manager, a UI / UX designer, and quality assurance engineers.
What are the features to include in your marketplace?
If you're still in the early stages, know that your market doesn't need that many features because you can add them as your market grow. Only, you still have to include the following characteristics:
Your users must be able to create accounts or profiles on your site. You will then need to create two types of profiles (buyers and sellers) where users can enter the necessary information (their name, email address, and password).
In order for your customers to trust your marketplace, it is imperative to optimize the security of your platform. In addition, as you process the personal information of all your users and payment transactions, develop a secure marketplace.
Integration of payment systems
Like any e-commerce site, the marketplace must offer payment systems. This is what enables buyers to pay for their purchases and also optimizes the user experience.
Your user reviews help you maintain the quality of your market. This not only builds trust but also lets your customers know what other users think about your products and services.
Finally, buyers need to have a way to find what sellers are offering - in other words, product catalogs. That's why your market needs some kind of search engine that people can use to find products and services.
In short, now you have all the cards in hand to develop your marketplace. It's time for you to build your marketplace and start selling your products and services