If you are in this post, it is because you have already heard the word marketplace or perhaps you have heard of the many benefits that this business model offers entrepreneurs, especially those who want to be part of the digital world.
This business model not only offers great opportunities to those who want to sell their products online, but also to those who are looking to buy at more competitive prices and even to brands that are beginning to position themselves.
Marketplaces have become an interesting business model for people, since unlike individual ecommerces that work as private stores of a certain brand, they bring together a group of sellers in the same place and generally offer more competitive prices.
If you want to know more about marketplaces, how they work and the main benefits you can get from them, stay with us until the end of this post.
What is a marketplace?
The word marketplace comes from the union of two terms in English: marketwhich means market and placewhich means place.
Therefore, it can be defined as a place to shop, a kind of virtual showcase where customers can have access to products from various brands or companies.
The increasing inclusion of technology in our daily lives brings changes in the way we interact and consume.
Thus, the possibilities of interaction and business take on new forms with the tools, platforms and different buying and selling models available.
One of the most popular, both among entrepreneurs and customers, is the marketplace. Here you can see an example of the most important marketplaces for digital products, the marketplace.
If you’ve never heard of this topic, don’t worry. The concept comes from an already very familiar model that we see at fairs, markets or shopping malls.
And now it has reached digital commerce, becoming a tool that fits the world of online business like a glove.
Considering the universe of electronic commerce, this model works as a portal of collaborative. But there is a difference between them.
Ecommerce is a virtual store that sells the products of a certain brand or company. It uses the B2C concept, that is, Business to Consumerwhich directly relates the customer to the company.
Already the marketplace brings together several companies on the same platform. For you to understand better, imagine a shopping mall, but virtual.
The customer has access to a diverse catalog and makes his purchase through the marketplace, but the latter is not responsible for its shipment or guarantee. This is the responsibility of each brand.
Thus, there is an interaction between the customer and the company at the time of purchase, and also between the companies and the platform. What would be a combination of
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Do you want to learn more about the marketplace? Read this post to the end!
How does a marketplace work?
The marketplace can contain varied products or be destined for a specific segment, such as electronics, literature and clothing.
In general, this model is structured around three pillars:
- Platform.
- Sellers.
- Customers.
The platform serves as a bridge for transactions and has two levels of access: one for merchants and one for customers.
Sellers are like partners who offer their services on the platform, where they organize their products, packages and offers.
They are also responsible for information regarding products and stores, and for maintaining the efficiency of the sales flow.
The seller is able to identify the trends or activities that lead customers to their products, investing more and more in effective solutions.
The operator of the marketplace platform is responsible for managing access and transactions. As well as the strategic actions that will promote the flow and boost sales on your website.
A good platform should have easy navigability and usability, as well as being intuitive for both sellers and buyers.
It should also have easy methods for choosing and paying for products, facilitating interaction and purchase possibilities.
Another important element is the . Investing in ads, blogs, videos, email marketing, among other strategies to promote the business is an excellent idea.
The manager must study his public, understand the segment and evaluate the actions capable of attracting consumers and boosting sales. He must also consider those that allow him.
Metrics and monitoring help to evaluate results and refine strategies.
Making quality a priority is what builds a good reputation for the marketplace, conferring authority and credibility on the business and transforming it into a benchmark.
Mercado Libre, Ebay and Amazon are well-known examples of successful marketplaces.
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What advantages do marketplaces offer?
With a marketplace, various products and brands can be brought together in one place, increasing sales possibilities and customer satisfaction.
The consumer has the advantage of enjoying a much larger catalog than that of a specific store, which allows him to compare prices, products, brands and choose the one that best suits his needs.
The small or medium, mainly, can use this business model as a way to project themselves in the online market and guarantee access and visibility for their products or services.
In addition, a more diverse audience can be reached, since the products offered are varied and this increases the possibility that the same person will make a larger purchase.
The ease and security in the payment of transactions can also be cited as attributes of the marketplace.
Another point in its favor is the low initial cost. The investment revolves around the platform and sales strategies, fundamentally.
As it is an online platform, the marketplace also allows you to monitor the development of sales and their results.
Position and growth can be verified through performance indicators, the so-called . As it is a digital enterprise, the actions in favor of the established goals can be measured and evaluated.
Digital commerce is in wide growth in the world. And for all these characteristics that we present here, the marketplace continues to stand out, increasingly surpassing the number of brands and ventures that have been associated with this business model.
For those who want to start in the digital market, this can be a good place to take the first steps.
The marketplace on social networks
As we have mentioned, the marketplace has gained a lot of ground over time and the increase in online purchases. And this expansion process has led it to occupy social networks that, as we know, reach millions of users around the world.
For example, Facebook has its own marketplace where both users and companies can advertise, display and sell their products.
In turn, Instagram has the functionality which allows brands to sell directly from a publication. In addition, users can search for specific stores, see all the ones they already follow and the ones recommended according to their tastes and preferences. All this without leaving the app.
Incredible true?
Marketplace for digital products
So far we have talked about the possibilities and advantages of the marketplace considering the sale of physical products, in general. You may be wondering if this business model works for .
The answer is yes! As its name indicates, this type of product is one that is marketed, consumed and delivered digitally. So nothing better than selling it in a virtual environment that brings together several don’t you think?
The marketplace for digital products is similar to the one for physical products, to a certain extent, but it has some differences. For example, regarding the 3 pillars that we mentioned above, we also observe the presence of clients and managers of the platform. Sellers are already divided into producers, those who create the product, and who spread it.
This type of platform also requires the use of specialized in digital products that facilitate and, consequently, increase sales.
One of the main differences with respect to the marketplace for physical products is that, in this case, the seller does not have to worry about the cost of delivery, because access to infoproducts is virtual, that is, no transportation is needed.
Well, I hope you have learned a lot about the marketplace and that you can take advantage of all the possibilities it offers to plan how to get your ideas out of paper.
Did you know that is a platform that currently works as a marketplace for digital products? If you already have a physical business and don’t know how to take it to the digital universe, download this free content that we have prepared especially for you.
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