The online market and its bright future: goodbye to godowns
The online marketplace is an e-commerce platform where the possibilities are listed in the name of the products. This the electronic market brings together sellers in a single window.
Under one electronic roof, consumers can walk an endless boulevard dotted with products. This convenience cord which facilitates shopping from different sources is what keeps the interests of consumers linked to the platform.
Convenience is what keeps consumers always on the brink of excitement. It was this match that blew up the number of marketplaces. While the platform can transform a small business in national, the power of process transactions remains in the hands of the site owner.
Let’s take a look at the 10 best marketplaces in the world and the number of guests they welcome.
The number of visits per month is mind-boggling, as is the profit. In 2020, the top of the world 100 marketplaces patted $ 2.67 trillion. If that doesn’t blow your mind, here are some more statistics that testify to the success of the online marketplace industry.
- With Over 300 million accounts and around 2 millions sellers, amazon spells A +. (Electronic office)
- Amazon counted 150 million primary subscribers. (Business intern)
- 169,782 new sellers took place on Amazon in 2020. (Pulse Market)
- After choosing a product from competitor’s websites, 90% of buyers go to Amazon to compare prices. (Wholesale trade)
The magic behind the markets
The market is buried in the online world with inventories. The problem is, the markets don’t have any. The sellers do. The platform’s job is to present the products of many suppliers to a consumer. Not to mention real-time product information presented to consumers, consumers eat, sleep and breathe comfortably.
Personalization runs in the veins of marketplaces.
The secret sauce is the change. Market channels are constantly offering ways to awaken the belief of salespeople who begins to snore after a while. The platforms go to great lengths to facilitate the buying and selling process for users. While sellers enjoy a faster selling experience, consumers rely on competitive pricing and lightning-fast shopping. Are marketplaces becoming the news Macy’s? Well, they are surely a dream come true for retailers and consumers.
Types of contracts
Vertical, horizontal and global are the three types of marketplaces, putting products in motion.
# 1 Vertical
Variety = 1, Sources ≤ ∞
Marketplaces full of products of the same type from different sources are called verticals. The narrow focus formulates a particular niche. For example, ShoeCarnival.com is dedicated to the sale of shoes but from different sources. TrueFacet.com steals the show by selling just one item – an expensive item – jewelry.
The smaller the focus, the better the personalization of the product. The better the customization, the better the quality of the product. The better the quality, the greater the chance of standing out among the competition. Another example is Etsy. Etsy focused on selling handmade items. Who does not know Etsy today?
# 2 horizontal
Variety ≤ ∞, Sources ∞ (only on condition that all the products share the same characteristic)
Products of different types from different sources are found in horizontal markets, but they all share a common feature. Greenobazaar.com is the best example of a horizontal market. Anything in its range (food, cosmetics, etc.) is organic (the “shared” characteristic).
Mom is another horizontal market product. This community platform connects the world’s most passionate automotive, sports and leisure enthusiasts who want to buy and sell automotive and sports products.
# 3 World
Variety ≤ ∞, Sources ≤ ∞
World markets sell “all to everyone.“Buying in these markets makes you feel like you are walking into a mall. Think about anything, and it will pop up on the screen in an instant. The ultimate example of a global market is eBay.
Hybrid markets are a juxtaposition of an extensive inventory and endless options. Examples include Amazon and Walmart. Are these names not synonymous with “surprise” and “amaze?” ” By bringing a wider range of products on a single platform, these hybrid markets manage convenience for both retailers and consumers.
Is there anything else as motivating as Amazon? Amazon is more than just a hybrid marketplace. It acts like a fuel that fuels the motivation of other market places. Every marketplace wants to race while carrying the weight of variety on its shoulders. We have entered an era where the next market explosion is just a blink of an eye away.
Unveiling the future of online markets
Look at the spectrum, representing the length (l) and width (b) of market reach. The online market should love length and ditch width overtime.
The beginning of the spectrum favors width (b) – horizontal marketplaces. The largest of all markets is Amazon, then comes Craigslist. The scene screams wildly as we move to the other end of the spectrum (Length (l)> Width (b)).
Progress time is directly proportional to complexity and indirectly proportional to opportunities.
Time progression α Complexity/ Opportunity
Horizontal marketplaces were born in the early days of the Internet. Any platform that could aggregate everything would win. Now, with the opportunities in the online marketplace becoming less pervasive, businesses have started to flow vertically instead of expanding horizontally. They started to delve deeper into verticals to stand out among the sea of mind blowing markets. Ideal vertical markets will dominate cyberspace.
The market explosion and the proliferation of businesses are real, as are the market upheavals and the survival of businesses.
The survival strategy of marketplaces includes finding the right place for sellers and concentrating transactions. This perfect place do we call an ideal position of higher profitability, and we find it by applying the Pareto principle. It indicates that 80% consequences are the result of 20% of causes. Simply, 80% of total transactions are targeted by 20% of sellers.
Time is testing online marketplaces. Those who don’t prove their endurance end up losing market share. The oThose who fail to create value end up saying goodbye to the downside online.