One of the fastest-growing industries in the world right now is eCommerce. Online shopping, hotel rentals, job searches - each of these falls under the spread of eCommerce. Some of the largest companies in the world have taken advantage of and found their success through eCommerce. There is a market for more right now, and if you want to establish a successful and profitable digital marketplace, now is the time to start the process.
Hopping into the industry will require more than the knowledge of how to build a website and host a server that can support buyers and sellers. The market, though in demand, is quite saturated with giants like Amazon and eBay. You'll need to know what trends are popular now and what avenues you can take your company down that will separate you from the rest. Firstly, however, you should know what exactly a digital marketplace is.
What is the marketplace?
In the simplest terms, a marketplace is a website online that connects people who want to sell their products and services with consumers who are looking to buy. They operate their business through a third-party platform - the domain where the business is taking place - and everyone gets something out of the transaction. Marketplaces can be more than simply retail; while retail might be the most profitable form of marketplace, there are still openings for other forms.
What type of market will yours be?
When you're creating your new marketplace, it's important to note what consumers are looking for right now. There has been a recent push by many to branch out in their online shopping sources, stepping away from the giants and giving more to the newer businesses. This could mean that openings in general online retail websites are beginning to show.
Retail is not the only eCommerce marketplace available, however. Places like LinkedIn or Upwork that connect people looking to sell their services to consumers are other forms of marketplaces. There is much less of a dominant force in this field, so hopping in could be simple if you're looking to establish yourself here. Know the trends of the market and what consumers want.
Features of a great marketplaceNow that you know what constitutes a digital marketplace and who your competitors would be, here are some tips on how to start a marketplace startup. First, you must choose your marketplace and begin the planning process. As we mentioned above, having an idea of what is in demand will help with this process - even if what you want to sell isn't an in-demand market, as long as you plan your build well, you'll find success.
What's the price that you should charge? Decide what seems like an attractive price model for your website that will both draw people in and earn you a profit. Once you have a consumer base, it's time to build loyalty and trust. A good client base is nothing if your website has a high turnover rate. Gaining people is great but keeping them is best.
Author: Adam EdmondAdam Edmond is a technology writer, and previously a software developer. He is a Masters graduate of the National Technical University of Ukraine in Applied Mathematics (department of system programming and specialized computer systems) and having worked as a software developer for Ciklum, he is now based in the USA as a contractor, and loves writing and sharing his experiences.
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