Understanding Peer to Peer Marketplace and Why You Should Build One
As technologies improve, it has provided business owners and entrepreneurs an opportunity to innovate and launch businesses that are better than their competition. In a globalized and connected world, the internet has made it possible to reach customers in any corner of the world and sell them your products or services. However, buyers and sellers are moving away from traditional eCommerce stores to marketplaces, where roles can be reversed in a blink of an eye. A buyer today can become a seller tomorrow, and vice versa.
The demand for marketplaces is on the rise and today, there are niche-specific platforms that cater to individuals, businesses, and even different industries. So, if you are thinking of a new online venture, building a marketplace could be just what you are looking for.
The Rise of the P2P Marketplace
A peer-to-peer marketplace has become quite popular. A good example eBay – here, individuals, who have products or services, can connect with prospective customers who want those products or services. And, the seller can easily become a buyer, who can purchase any other product or service that another seller has to offer. That is exactly what happens in a peer-to-peer marketplace.
The marketplace functions as a platform that brings buyers and sellers together and they can communicate with each other without a problem. This marketplace minimizes costs and transaction time and also is very convenient as a seller has access to thousands of buyers and the buyer has access to thousands of sellers. So, no one is short-changed and everyone ends up a winner, including the marketplace owner, who gets a cut (or commission) each time a seller makes a sale.
Since a peer-to-peer marketplace can bring a lot of revenue, the demand for peer to peer marketplace software has increased. Software, like IdyaFlow, comes packed with features, built-in editors, templates, and themes that allow you to create a customized marketplace based on your revenue model.
P2P Marketplace vs eCommerce Store
It is very easy to mix up a P2P marketplace with an eCommerce store and many believe that it is the same. However, there is a vast difference between the two though on the surface they may look similar.
For instance, if you love making handmade jewelry and until now, you have been selling your masterpieces to family, friends, and acquaintances. Then someone tells you that you are good and you can easily increase your customer base by going online. You have the option of creating your own website (eCommerce store) from scratch or you can list your products on a peer-to-peer marketplace. Both have the potential to succeed and become profitable.
If you decide to create an eCommerce store, you will have to invest time, money, and effort to build the store, and this will cost you a significant amount of money. Once the store is built, you will have to invest in SEO and SMM to get traffic so that you can make your first sale. SEO and SMM will be ongoing if you want to be found in SERPs.
However, with a peer-to-peer marketplace, you have nothing to worry about. The marketplace can be built using marketplace builder software and is exactly what the marketplace owner may have done to create the peer-to-peer marketplace. So, you have a readymade platform to list your products and services. You do not have to worry about SEO, SMM, or finding customers. The marketplace already has a steady flow of prospective buyers who will buy what you have to offer.
Most sellers love to sell on such marketplaces, as there is a huge number of buyers waiting to buy their products or services. Buyers, on the other hand, love peer-to-peer marketplaces as they can compare products and services on one platform and make an informed buying decision.
Advantages of a P2P Marketplace
Today, many entrepreneurs are choosing to create peer-to-peer marketplaces as they have huge potential to grow. Most existing marketplaces are witnessing annual growth in their revenue and this has attracted many entrepreneurs to create their own marketplaces to cater to a specific niche. While peer-to-peer marketplaces are popular, one should not undermine the B2B marketplace platform that functions like P2P but for businesses.
Whether you are choosing to build a P2P or B2B marketplace, here are some of the benefits that you should be aware of:
Profit with Minimal Effort: You can make a profit without a lot of effort if you have a peer-to-peer marketplace. You can use a peer to peer marketplace software to create the marketplace and after that, you just need to attract the first visitors. You do not have to worry about production or shipping. Your visitors will do the work for you as long as you have a feature-filled marketplace.
Build a Reputation: Your marketplace can establish its brand without you doing anything. The key is to attract suppliers, manufacturers, and sellers who focus on quality. The moment the quality is high and available at an affordable price, you will get a stream of customers. This makes it easy for you to build a reputation for your marketplace without actually doing anything.
Flexibility: Since you do not manufacture or produce goods, it is easy for you to change the specifics of the marketplace. You can easily convert a peer-to-peer marketplace into a B2C marketplace or B2B marketplace. This flexibility makes it an attractive business proposition.
Easy to Build a Marketplace: You use a marketplace builder to create a marketplace without knowing how to code or having any technical skills. Online software is available that allows you to create functional, feature-filled, and user-friendly marketplaces that reap rich dividends.
The Bottom Line
Now you know what is a peer-to-peer marketplace and why such marketplaces are in high demand. If you want to be different from your competition, focus on quality – ensure that sellers offer premium-quality products and services at affordable prices. Let buyers review products, rate sellers, and share links on social media. This will bring you high-quality traffic and help your marketplace grow by leaps and bounds.