There is a rapid increase in the sharing economy owing to the rise of modern online marketplaces. A marketplace is nothing but a platform that allows third-party users to submit their goods or services and present them to the viewers. The success of a marketplace platform depends largely on how you build it. If you wish to build a marketplace that gives you real benefits, this article is the right place for you.
Six Ways to Build a Marketplace Platform
Similar to many other things, building the right marketplace has no secret recipe. However, if you follow some steps, it will surely increase the chances of having a successful platform. Here are the steps to follow:
1. Select a viable sector
There is a lot more value and relevance when the industry you choose has a good number of suppliers and consumers. If the sector is limited or too restricted, there is less chance for many suppliers to come and join the marketplace. This is predominantly because most of the consumers will already know the suppliers personally, and there will be no need for a marketplace.
Moreover, there might also be the possibility that the suppliers have already reached out to the customers in their sector. Thus, they simply don’t want anyone to be the middleman. Thus, it should be a multi vendor platform.
2. Know your unique value proposition
Once you build your marketplace to get connected to your customers and suppliers, you have to know how it will help you to do so. You will have to analyze whether the marketplace will save you time or money. It might also significantly improve access.
3. Check the size of the market
Once you address the above-mentioned points, now you have to figure out the size of your market that can be addressed through digital platforms. Those who have come from a very particular sector might probably have a good hold of both the vertical’s statistics and various channels.
If you don’t have the related information, you can consult any person who is related to the industry and will have the data. You can also use internet sources that can be trusted for such information.
4. Design your distribution model
You need to be extra cautious when it comes to designing your distribution model. To prepare the right distribution model, nothing can be more beneficial than experimenting patiently. Use different techniques on a particular digital channel to figure out the right one.
5. Select the correct business model and take a look at the economics
If it is the traditional business, your business model and economics would be all about shop rentals, warehousing, staff, cost of advertising, sales, etc. However, in the case of online, things are slightly different.
You have to make a constant effort to bring supply and demand in a marketplace. At the same time, you should offer suppliers an affordable option to sell. Moreover, the consumers require a variety of items at reasonable rates.
6. Make sure your product is better than your competitors
Building a marketplace that is much better than your competitors will help you to be in the market for a long time. You will be able to provide the top products and services at reasonable prices and with unique perks.
Come up with only the best solutions to solve the problems of your supplier’s businesses. By doing this, you will be able to get insights into the business. Ensure that your marketplace is well-designed and provides a great experience to the customers. For this, you will need to have a proper mix of experience and wisdom in the specific industry that you have chosen.
You will also require great technology, sales, and a good pricing strategy to impress both the suppliers and consumers. You have to offer uniqueness to amaze them. Try putting out different types of content to make it look creative. You can create articles, images, and videos that are relevant to the industry. Creating a FAQ section will also work. Don’t just give them a blank marketplace. Convert your marketplace into a platform that is loved by all.
Another great way to grow your market base is by rewarding the buyers for their loyalty. You can establish a referral program where they get rewards for every referral. Your way of rewarding the consumers will also depend on the industry you have chosen. Irrespective of that, having a reward system will be very beneficial for you.
Conclusion
Establishing a successful marketplace can seem like a daunting task, but it isn’t if you do it the right way. By following all of the above-mentioned techniques, you will be able to retain all your buyers and suppliers. You can simply continue to be the middleman and enjoy the benefits!
