The Important Points You Must Know in an Online Marketplace
Online marketplace is either an app or website that is facilitating shopping from various 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.
As a matter of fact, it is not really a surprise to learn that there is a growing number of these marketplaces as they provide consumers with utter convenience. If you’re creating a department store in today’s time, it’d be an online marketplace or also 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.
Consumers do not want to use apps from just a single retailer. What buyers want is just a single platform or app that can offer everything they need from different shops. That is one of the biggest appeals of such marketplace.
On the other hand, you need to know that there are some downsides to this form of shopping as well. The information is not comparable and delivery speed of sellers are not uniform because the products offered are from different sellers. This actually leaves some clients in shock. Streamlining things for consumers while pulling in numerous suppliers is something that is hard to do, which is required to make the marketplace work flawlessly.
Fact is, there are three types of marketplaces nowadays namely vertical, horizontal and global. In the next lines, you’ll learn a quick overview of each type.
Vertical – marketplaces are deemed vertical if it sells products from various sources but all have the same type.
Horizontal – this shares a characteristic but this online marketplace sells different types of products.
Global – and as what the name indicates, this is a kind of marketplace that is selling everything.
There are so many hybrid marketplaces over the internet and numerous companies big or small let users to offer their own products in these said marketplaces that are surfacing on ecommerce websites. Let’s assume that it is functioning well, the marketplace is adjuncts to the ecommerce page that is able to increase the amount of traffic by offering more and more product selection.