Online marketplaces have become very popular as it enables buyers to find cheaper products more easily and without compromising quality. Sellers to benefit from such a marketplace as it allows them to get access to more customers and they can use the tools available on the marketplace to further their interests.
If you are looking to build a marketplace, it is best to create a two-sided marketplace. It will enable you to bring sellers and buyers onto a common platform, where they can create as well as exchange value. Examples of a two-sided marketplace are Uber, Airbnb, and eBay. In case you are wondering why two-sided marketplaces are flourishing, here are three reasons for it.
1. Ease of Scalability
A two-sided marketplace does not maintain inventory. That makes it easy and convenient to expand the platform. You do not have to worry about investing in inventory and that ensures you can scale it to meet your target audience’s needs.
2. Easy Access to the Right Technology
Technology is no longer a barrier if you want to create a two-sided marketplace. You can choose the marketplace software to build a feature-rich multi-sided platform. Using a marketplace SaaS tool like the one offered by IdyaFlow enables you to build a marketplace regardless of the size of the business or the industry you want to target. You can create a B2B or B2C marketplace when you have the right software. IdyaFlow ensures you can quickly create a two-sided marketplace with escrow accounts, intuitive admin portal, and in-app messaging, and launch it as a minimum viable product (MVP).
3. Take Advantage of the Two-sided Dynamics
A two-sided marketplace creates a network-like effect and this accelerates the growth of your business. Since both buyers and sellers benefit from the marketplace, it fosters the growth of the platform. That, in turn, helps you to grow as a marketplace entrepreneur. Besides using the right marketplace website software, you should focus on the quality of the products and customer care. That will ensure that your marketplace becomes the preferred online platform for buyers and sellers.
Tips to Build a Successful Two-sided Marketplace
Here are some tips that will help you create a thriving and flourishing two-sided marketplace:
Pick the Right Industry
When you are planning to start a marketplace, it is advisable to go into an industry that you are an expert in. That way, you will be familiar not just with the industry but also have a better understanding of what buyers and sellers require in the platform. You will be able to offer the right solution to your target audience and that, in turn, will ensure that your marketplace becomes successful.
Get the Core Interaction Right
If you want your two-sided marketplace to be a success, it is important that you focus on getting the core interaction correct. This refers to the actions buyers and sellers must take in order to complete a transaction. You need to be very specific about the transactions that will take place on the platform. For instance, sellers should be able to list the products that they are selling and the buyers should be able to purchase those products with minimal hassle. It is prudent to remember that the buyer or the seller will initiate the initial connection. Once that is done, the exchange of value takes place. The change of value concludes the core interaction.
Attract Buyers and Sellers
When you start a new two-sided marketplace, it will be tough to attract both buyers and sellers as they will not perceive value in the platform. It is prudent to remember that without buyers or sellers, there will be no incentive for either party to join and stay on your platform. Hence, you should have a clear-cut strategy on how you want to attract buyers and sellers. You would need to provide the right incentive to sellers to register on your site and buyers to finalize a purchase. Usually, a monetary incentive for both parties is a good way forward. Also, focus on product quality and product features. That will attract the right buyers to your platform.
Create a Demand for the Products
When a seller lists products, there should be buyers willing to purchase them. If that doesn’t happen, the seller will not be keen to stay on your platform. Hence, make sure that you analyze the marketplace and ensure it is the right fit for the market you are targeting. For this, you would have to meet the needs of your users in the industry you are catering to. When you accomplish that, the market fit will happen on its own. If your platform has the right market fit, it will exponentially grow within no time and you will have a successful two-sided marketplace business.
Listen to User Feedback
It is essential that you note the feedback you get from the users. Take feedback and criticism to improve the marketplace. That will make sellers and buyers feel as though they are important and part of the platform. It will foster loyalty and also help you improve and optimize the marketplace.
Opt for the Right Marketplace Software
You can use all the above tips to create a two-sided marketplace but it will fall flat if you do not select the right marketplace software. While you will find several software that claims to be the best, select one that gives you the greatest flexibility and offers features that you want to include in your marketplace. That is why IdyaFlow has managed to disrupt the marketplace industry. It provides features that benefit marketplaces and makes it easy for marketplace entrepreneurs to quickly create a feature-rich platform and launch it without spending a lot of money. It also allows entrepreneurs to change or add features as their marketplace grows.
These are some of the things that you need to use to create a successful two-sided marketplace. There is no doubt that marketplaces are growing by leaps and bounds but to get a share of the pie, you need to be armed with the right software to build a marketplace and then ensure you adopt the right strategies to attract sellers and buyers to your platform to exchange value and create a network.