Why Magento is the successful business model to build an online marketplace
If you’re wondering whether to start and grow an online business, you can consider creating an online marketplace! Online marketplaces present an amazing opportunity for small to medium-sized businesses.
Magento — A successful online marketplace business model
An online marketplace is a website or app which facilitates shopping from many vendors to a wide audience. The marketplace operator does not own any inventory; their business is to present other manufacturer’s inventory to a user, facilitate a transaction, and earn a commission. Amazon is an ultimate example of a thriving online marketplace business model; they sell everything to everybody.
Offering real convenience to consumers, over the last several years the number of marketplaces has exploded. It’s a much broader assortment than any store could offer and an effective portal for connecting buyers with sellers.
Consumers don’t prefer using apps from single (eCommerce) retailers. They are more likely to download an app that provides a wide range of products, broader than a single store can offer. This is one of the primary reasons that allures for a marketplace. Some other major benefits of starting an online marketplace include:
1. Commerce is increasingly taking place online — Investing in a comprehensive omnichannel strategy is the need of the time.
2. Up-front costs are incredibly low — It is to pay absolutely nothing until you sell something.
3. Continuous experimentation is easy — Test different products, pricing, and trading terms without risking everything.
4. Grow as quickly or slowly as you want — Work within your budget, resource, and time constraints.
5. Get paid instantly — No need to hold stock waiting for payments to clear. No credit collections to worry about.
6. Seller Protection — eBay and PayPal actively protect you from fraudulent buyers, providing you follow the rules.
7. Add another channel to your mix — If you are a small brand with your e-commerce site, being a marketplace seller will expose you to a wide range of consumers who could be looking for products like yours.
8. Seller support — Get assistance via phone, chat, or email.
9. Flexibility — You choose your working hours. Start part-time whilst working in a day job, and then give your boss the flick when you’re ready.
10. Work with people you trust — Why not make it a family business? Create a business that can be handed down to your children.
Commerce is changing at a very rapid pace. These are but some reasons and advantages of having a multi-vendor marketplace. In almost every type of e-commerce today, which makes them move faster and more efficiently is virtually unlimited resources, technological capability, and potential.
Another common thing is that after a time, there’s a shakeout and only the most successful survive. Ultimately, all online marketplaces will have to prove they’re staying power by offering efficiency and unique value to consumers.
The Future of the Online Marketplace Model
The future of the marketplace model is really in peak position. So If we look at the eCommerce industry, marketplaces stand taller than other eCommerce business models. They often change providers if sales do not come in. Only the best marketplaces with good traffic numbers will be able to sustain themselves in this ruthlessly competitive industry.
Are you ready to start your marketplace? We can help you with a robust, complete, ready-made multi-vendor marketplace solution — Webnexs, which is powered by the world’s #1 eCommerce platform — Magento marketplace platform.
Share your business requirements with us, and we’ll reach you with a profitable marketplace solution.