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Online Marketplace | E Commerce Industry January 11, 2019

Beginner’s Guide On Starting A Successful Online Marketplace

Brief On An Online Marketplace

Wondering what a marketplace would be like online? Exactly how it would be in the real world where people can come see what is available for purchase. In the real world a marketplace would be a collection of stores clustered nearby where a products can be bought from different vendors. Similarly an online market place would have many vendors from whom the customers can buy the products.

An online website/application would basically have three criteria to fulfill to qualify to be labeled as a market place.

They are:

1. Vendors would have the rights to create their own brands and name
2. Allowing the vendors to display their products that are for sale (in this case digitally through images and videos)
3. Working on the structure of the marketplace for the final buying and the selling process to take place
What is a marketplace business?

A market place business is basically a place where vendors sell their products and buyers buy the products. However, when we talk about the online market places, there is a 3rd entity involved. This third party would be the owner of the market place (better known as an e-commerce platform). The owner develops a platforms for the buyers and sellers to meet and interact, while driving a commission from both parties for every transaction. This gives small business owners a good customer base and give customers multiple vendors to choose from.

How To Start A Marketplace (Online)

The technology of today is best suited to build an online marketplace but as easy as it seems, it is far from a trivial task. The online market place can be made into a versatile scalable business model featuring all types of products and services. Having a very strong strategy and knowing the procedures/ practices before venturing out is very important. There is plenty of hard work that would be involved into making your very one online marketplace or e- commerce site.

Before you start your own online marketplace, you must look at some important requirements like:

• Why would you develop a market place like this
• The challenges that you will be facing and strategies that you need to implement to overcome those challenges.
• Launching as soon as possible
• Creating the marketplace so that the users are seen as the priority
• Fast and efficient and having a global vision and compete with the global contenders
• Feature the content and products vividly

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Why One Should Create An Online Marketplace

There are various reasons as to why people want to create an online market place. Some create an online platform to help seller with the selling of their products through a common platform. While some develop a market place simply to earn a profit. Whatever be the reason, the creation on an online marketplace does what most big-box sellers cannot. This is due to the large targeted audience that awaits ahead. The creation of a marketplace ensures that users can rent or sell goods, spaces or services online at a cheaper price, better quality, or in a more convenient way. The profit gained through all the deals should be a reasonable one so that it can become one of the top market places startups.

The competitive players in the E commerce industry have attractive offers for customers/sellers to keep their firm grip in the business. However, the inventory should be strong with enough goods to buy or sell without stopping the flow of business. The inventory of an online marketplace comes from the vendors themselves. This makes it one the most attractive reasons for entrepreneurs to start up with as it would not require an inventory of their own. It is just connecting the buyers with the sellers and earning a commission for all deals.

Feature That Your Online Marketplace Should Have

To build an online market place is one thing but to make it worth the effort is what determines its success or failure. Over the years the mindset of the consumers have changed and most are willing to buy, trade and invest into online shopping. For building a marketplace startup, winning the confidence of the buyer and seller is very important. This builds the trust of both parties. As a new player in the business of online shopping and selling ensuring that the customers get a good experience while the sellers get reliable customers.

Key features of the marketplace website/Application:

Some of the features that would help your online marketplace when you start-up are:

Request of an item – the buyers should be able to request an item to the sellers/owner of the e-commerce site even if the requested product is not available. This would cause the sellers to understand the wants of customer and also increase the business. The online market place would become a one stop shop for all kinds of items.

Easy Listing – creating a list of items makes it simpler for the buyers to see, judge and buy the different products that capture their interest. However, the simpler the list of items are the better would be the business. Although, the listing of the items/products should be kept simple and minimal with all the important information about the product.

Reviews and rating – keep a separate feature for reviews and rating the products by the buyers so that the other potential buyers can get a true insight to the product. At the same time negative review can also help in detecting the fake, duplicate products or vendors.

Multiple payment options – Ever since the world has gone digital and most of the payments now can be done through the digital way, there must be a feature within the website to allow payment transactions through multiple options. There must be cash on deliver option too as a lot of people still prefer the old style of money transactions.

Conclusion

It takes years of marketplace business model to Create Marketplace Website like Amazon and eBay. However, when building an online market place application or website the main features that experts suggest focusing on is Minimum Viable Product and creating it. One must not get caught up in development of the application/website alone.

Focusing on creating a market place within a small niche would be helping the business thrive and grow. Earning the trust of the buyers and the sellers take time to build. Hence the building of a large market platform with no customers would be waste of time and effort not to mention spending of money. Experts suggest that keeping the product count low but the services excellent is the key to growing. Customer trust and satisfaction is what is going to help.

Are you keen on building your only business marketplace application/ website? Then you must get support and help from the best online marketplace solution provider.

HIPL-  Online Marketplace Solution Provider for all your business requirements.

HIPL offers development solutions that have been tested thoroughly. With 24*7 support and maintenance services, Hipl is the name you want to turn to for your online marketplace development needs.

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This post was written by HIPL

1 Comment

  • Hemant Joshi says:

    Nice information ,but one thing is very important ,it is always a herculian task for new entrant to displace old and big players in the marketplace. Big e-commerce companies are working on very big scale they have variety f products and huge investment to handle different market condtions. To challenge existing players like flipkart, amazon is really difficult without huge investment in products and marketing as well. Already TATA CLIQ ,tried very hard to compete with these giants but everyone knows ,it cpuld not .Now reliance is trying with its venture AJIO .Let see can AJIO perform like RJIO in telecom.

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