Marketplaces Business Models In 2021
An online marketplace business model is an evolving trend in 2021, and every entrepreneur must know about it.
12:11 29 March 2021
A perfect revenue model is required to create a successful and sustainable marketplace business platform. Many people have worked out with different models but failed to figure out the best. For everyone creating such models, they should know that a marketplace will fail, without a revenue one. Here are five marketplace models that will make the marketplace profitable in 2021.
About marketplace business model
It is the backbone of the online marketplace platform defining the ways to create revenues. You must have heard the names of the big companies, like Walmart, Amazon, Airbnb, eBay, Upwork, etc. Each one works on a marketplace business model, so you must know how to build a marketplace. Before that, here are the top five marketplace business models of 2021:
- Commission model
Currently, it is the most commonly used model, and the commission is charged for every successful transaction. When the amount is paid to the supplier by the customer, the model will charge a minimal amount on the fee for the services being offered. For any business, charging a commission is a lucrative revenue model. The reason behind this is when the business grows, more transactions will take place, leading to an increase in revenue.
- Listing fee model
In this model, a seller has to pay an amount for listing the services or products on the online platform. It is another model where the seller has to pay a sum to the tool. It is used as the seller gets value depending on the listings on the website.
- Subscription model
In every regard, subscription dominates from the regular sale to the digital world. Thus, it would not be wrong to say that subscription is the ultimate model. In today’s time, this model is used by many companies as everyone has started following the modern approach model. It starts with a subscription fee, and the customer must pay the amount at a certain time to receive services or products.
- Freemium model
Here, the company offers a service or product free of cost to sellers or buyers. But they will charge a fee for premium subscriptions, additional features, or some extra upgrades. The objective behind this model is to allow customers to access the free version and enjoy the services. Once they use it, people will never stay behind without purchasing the premium offers.
- Listing models and featured ads
In this model, the seller has to pay an additional amount to increase the visibility of their listing, displayed before others. It allows you to feature the ad on the homepage of the website while offering more visibility for the offerings.
Now that you have known the various marketplace models, here are some things to keep in consideration while creating a website or an app.
- Niche research
When you have an idea of creating a marketplace, start with niche research. The appearance must cover the specific needs of customers. After that, you must analyze the keywords before using them to have maximum effect. It will help in influencing the model and meet the demands and supply profitably.
- Know your target audience
Audiences are the most integral part, and you cannot afford to avoid them at any cost. A model becomes unsuccessful if it does not meet the targeted audiences. Most models fail as they do not prepare them according to the requirement of the audience. Also, make your platform rich by providing all the details that customers look for. It can be testimonials, rewards, true vivid stories, ratings, etc.
- Designing process
Keep in mind that the marketplace model is open and should earn money for you. The right choice of framework, platform, etc., will play an integral role. Thus, ensure that you choose everything appropriately so that your end product is up to the mark.
In the end
The success of your marketplace model is dependent on the platform you choose. Understand your niche and concentrate on how you can use the right technique to earn more money. It’s the right time to step forward and create an online marketplace, fulfilling your needs. The right platform will be the backbone of the online marketplace.