In short, the marketplace is the business model that allows multiple vendors to list and sell their products under a single domain so customers have more options to compare and choose in the best possible price and quality. There are no shortcuts for launching a marketplace and making it successful. Easy come, easy go, right? The first step to start a marketplace is not finding developers or open source solution, it should be investigating which types of e-commerce marketplace you should apply.
We have a variety of different marketplace types available based on a range of business models and they are broadly divided into categories based on the way in which they are operated. Let’s see:
1. Independent marketplace
An independent e-marketplace is usually a business-to-business online platform operated by a third party which is open to buyers or sellers in a particular industry. The way this marketplace operates is allowing people to register and access classified ads or requests for quotations or bids in your industry sector. Generally, it will require some forms of payment to take part in.
2. Supplier – oriented marketplace
As a supplier directory, this type of marketplace is usually operated by some suppliers who desire to establish an efficient sales channel via the internet to a large number of buyers. With this marketplace, we can easily search by the products or services offered. Buyer will be provided full information about suppliers for markets and regions they may not be familiar with.
3. Buyer-oriented marketplace
Unlike supplier-oriented marketplace mentioned above, buyer-oriented one is normally run by a consortium of buyers in order to establish an efficient purchasing environment. If you are willing to buy something, you can come to this marketplace to achieve the best price from suppliers. As a supplier in this marketplace, it will be a great idea when you can advertise your catalog to a pool of relevant customers who are looking to buy.
4. Vertical and horizontal marketplace
- Vertical marketplace will focus on businesses vertically up and down every segment of a particular industry sector such as printing, chemical, and construction. By taking advantages of the vertical marketplace, you can be successful in boosting your operating efficiency and supply chain costs, inventories and procurement-cycle time.
- With the horizontal marketplace, it will connect all buyers and sellers across different industries or regions. Generally, the business owners selling office equipment or stationery usually especially preferred this type.
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