Tips To Be Considered Before Launching Your Own Marketplaces
For people starting a marketplace, I have 3 key pieces of advice. Before revealing them, I want to let you know that whatever I am going to talk about below, It’s all based upon my client’s interactions and their feedback on marketplace challenges & growth opportunities.
No doubt Marketplaces are a booming industry. And there are so many opportunities for almost everyone. Whether you want to start a marketplace for tutoring Service or a doctor appointment booking marketplace, Or Even a Pet care Marketplace, You can succeed if you follow strategic planning and key concerns.
To understand that better, Let’s first see the types of Marketplaces:
1. Product Marketplace(To buy and sell products)
Examples: Amazon, eBay, Alibaba, Flipkart
2. Service Marketplace(To search and provide services)
Examples: Uber, Zocdoc, Taskrabbit
3. Project Marketplace
(Where people arrange to fundraise for startup projects and donate or provide the fund to them)
Example: Fundable, Kickstarter, IndieGoGo
4. Hybrid Marketplace
(Where people buy or sell products and services both)
Example: olx, oodle, Craigslist
As of now, you got the idea for your marketplaces. Let’s jump into the key concerns to avoid mistakes & ensure success in the marketplace industry.
Most of the budding entrepreneurs just see the surface level ease for marketplaces. Like one does not need to be technically strong to run a marketplace for programmers/developers. Or if you have a Marketplace Platform set-up then you are ready to go. But wait!!
- Are you sure about your Marketplace type?
- Have you thought about the Niche in the first place?
A generic marketplace is more likely to be impressed by the established leaders. Like if you think about launching a product marketplace like Amazon or Flipkart you are more likely to not succeed. But if you will focus on a specific Niche, a personalized platform for paralyzed people, or a Specific Craft specific platform with more personalization & in-depth Customer-centric details then you are more likely to succeed.
- Have you thought about your Revenue Model?
Suppose you could like to run a marketplace for Freelancers, then have you analyzed the pros and cons of various revenue models like( Ad revenue model, Commission model, Joining model), and finalized which one is best for your marketplace idea.
Apart from these 3 key pieces of advice, I must say choosing a company to get your desired marketplace platform is also a challenge. Because you need to confirm that’s your plan is safe, your contract details are safe no doubt you receive an error-free, user-friendly fantastic platform delivered along with the post Support Service.
I have experienced all these with my current company ….. Privacy is one of their top concerns, sometimes we hate this but they do little detailing before delivering any product.
Bonus Tip: Online Sanitization is one of the trending Service Marketplace rights now.