Everything About Online Marketplaces
An online marketplace can be an app or a site that facilitates shopping from different 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 are making a department store today, then it will be an online marketplace or otherwise called as department store 2.0. Because users can access supplier’s inventory easily via electronic means and that the marketplace doesn’t require to own it before they make offers to customers, all the products sold by the suppliers are available to consumers and that there is real time info on the number of supplies for the products sold on online marketplace’s website or application.
Only a handful of consumers will stick with a single app provided by single retailer. They are more interested to download an app that can provide all the products they want from various stores. The truth is, this is one of the most sought after feature of this marketplace.
On the other hand, you need to know that there are some downsides to this form of shopping as well. To give you an example, because the products offered come from varied sellers, don’t expect that there is uniform speed in delivery and that the information is not comparable too. This actually leaves some clients in shock. Making marketplace work seamlessly requires you to draw in numerous suppliers and make things flawless for your consumers which is something that is hard to achieve.
The truth is, vertical, horizontal and global are the three types of marketplaces used by various investors and businesses today. Following is a brief overview of each type of marketplace.
Vertical – a marketplace is considered vertical if it is selling products from multiple sources but all are of one 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 literally countless of hybrid marketplaces you can find in the internet and tons of companies small and big are allowing users to promote their own merchandises that are now surfacing in multiple ecommerce websites. Assuming that they are functioning pretty well, then the marketplace adjuncts to the ecommerce websites that bring increased traffic and plethora of products.