Marketplace Software
Join the Sharing Economy!
Online marketplaces are defining a new model on how products and services are exchanged. Customers no longer need a broker/agent to connect with Suppliers, as the middle men are being replaced by the platforms. And these platforms are collectively called Peer-to-Peer marketplaces. This type of sharing things existed, however there was limited trust and it was rather difficult to match the customers and suppliers seamlessly.
With digitalization, these gaps and challenges were addressed. giving rise to sharing economy or collaborative economy. Now Suppliers and Customers rely on secure online platforms to interact with each other. And these interactions are based on trust and connivence.
Read below the types of marketplaces based on items that are exchanged, users that interact with one another, and how the platform is managed.
Rental Marketplace Platforms
With social media connecting people like never before, sharing commodities between them does seem like an obvious next step. The Peer-to-Peer Rental Marketplaces allows people to share things with each other without having to buy them. But more importantly, these marketplaces have given people a way to make money off their underused personal belongings.
Key reasons that have played primary role in the success of rental marketplaces:
– Offers an easier & convenient access to resources that people want to use but don’t want to buy (or can’t afford to)
– Allows monetization of underused items
– Minimizes the unused or wasted value of resources
– Helps in building stronger and connected communities
– Encourages reuse and deduces the negative impact of consumption of resources on environment
Services Marketplace Platforms
With over 43% of the workforce in the US will be freelancers or self-employed by 2020. A service marketplace is an online platform which initiates, facilitates, coordinates and completes buying and selling of services between service seekers and service providers.
The different business models in the service marketplaces are based on pricing or payment models:
Transaction Based Model: The marketplace charges a percentage of fee on each transaction. In this model, there is no upfront cost of listing and encourages more suppliers to join the platform, thus increasing the marketplace’ supply.
Lead Based Model: In a lead based model, suppliers pay-per-quote for matching with the customers. The model of having suppliers pay to bid on a project results in more qualified options and the best way for the customers to find the right supplier
Subscription Based Model: The marketplace offers a range of subscription plans at different price points based on the frequency of use or number of products/services listed. Here, the marketplace can enable subscription both at the customer or supplier end, where they are billed on a recurring basis and receive their services at the same time on a preset basis or as per their convenience.
Delivery Marketplace Platforms
Peer-to-Peer delivery platforms (also known as “crowdshipping” or crowdsourced shipping) is one of the sharing economy areas that is competing for the market share along with traditional delivery options like post offices, FedEx, DHL, and others. The model varies between different platforms but essentially connects a driver/traveller who is en route will pick up a package/product/grocery and take it to the customers at the other end of their trip. With the growing number of delivery-only food businesses that are leveraging data, on-demand transport infrastructure, and strategically placed kitchens are helping restaurants expand their coverage with minimal upfront investment.
