What is Peer to Peer Marketplace?
The peer-to-peer marketplace is an e-commerce model with some very specific features that differ from traditional business models. The main difference is in the roles of customers and suppliers. The traditional model is composed of two distinct groups, customers, and suppliers. They interact with one another, and their roles are precisely defined. In the peer-to-peer marketplace model, there is no solid line between the two roles, customers can act like suppliers and vice versa. It is based on the concept of Sharing Economy, where assets or services can be shared between individuals.
The power and the influence of the peer-to-peer marketplace platforms can be well understood by the fact that in the last 15 years, more than 200 startups following a sharing-based model received investments over 11.5 billion dollars. In 2016, consumers spent at least $10.7 billion in the sharing economy platforms, which has generated an estimated $1.7 billion in revenues in these peer-to-peer platforms.
Why Peer to Peer Marketplace?
Use of Underutilized Resources: These platforms facilitate the sharing of goods, services, time, capital, experiences, and space, directly between individuals, and often at a reduced cost to the consumers. These platforms are always “on” and open to virtually any consumer from anywhere.
Convenience and flexibility: No need to produce any goods or invest in Manufacturing. Easy to change industry, marketplace specifics anytime.
Additional Job Opportunities: Given the flexible nature of the work environments in the platform based businesses, more and more women and young people are able to work on a part-time basis or remotely, thereby improving the social and economic status of the people.
Key Functionalities for Peer to Peer Marketplace
This feature allows for adding products or services to the website. Providers should be able to add, remove, edit, publish and delete items. In turn, customers can review, comment on, and rate items. Vendors should be able to customize their products for their Brands.