The Important Points You Must Know in an Online Marketplace
Websites or apps that are makes shopping from different sources easier is referred as an online marketplace. 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. In today's time, you are going to find numerous online marketplaces and for sure, you've been using some of it.
Since they are offering great convenience to consumers, for the past few years, it is not really a surprise that for the figure of these marketplaces exploded. 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. 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.
Consumers do not want to use apps from just a single retailer. They are more interested to download an app that can provide all the products they want from various stores. That's among the most notable aspects of this marketplace.
You on the other hand need to know that there are drawbacks in this type of shopping too. 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. That may surprise clients in a bad way actually. Making the marketplace work flawlessly means drawing in many suppliers at the same time and make things seamless for consumers which is quite hard to do.
Fact is, there are three types of marketplaces nowadays namely vertical, horizontal and global. 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. 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.