openPR Logo
Press release

Online Marketplace Business Plan

08-13-2021 04:03 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: YourRetailCoach

Online Marketplace Business Plan

Online Marketplace Business Plan

Understanding the revenue model of a marketplace.

A marketplace business model ( https://www.yourretailcoach.in/online-market-research-companies-pune/ ) is a platform that connects buyers and sellers. They provide a platform for the two parties to interact and complete a transaction. A marketplace model has a buyer and a seller. The buyer can be a business entity or an end customer, and the seller can be a business entity or an end customer depending upon the model of the business.

How are online marketplaces generating profit? ( https://www.yourretailcoach.in/developing-an-online-marketplace/ ) What are ways to monetise an online marketplace? What is the revenue model of a marketplace?
Since it is a platform, how do marketplace businesses generate revenue?

· Sign Up fees to Sellers

o Generally, once the website has gained traction, they can charge the sellers a fee to sign up. It is called onboarding fees.

· Subscriptions

o Subscriptions or membership fees can be charged to consumers/buyers in lieu of some features or additional services
o Very similar to this is a freemium model approach. The website is free to register, but with only a limited set of features visible to access, the buyers or sellers could become premium members to access the entire website.

· Listing Fees to Sellers

o Generally, the marketplace model may allow a few SKUs to be listed in exchange for some fees and post that limit charge per SKU to be listed. This is something which is common in giant supermarkets.

· Commission on Sales

o The chunk of revenue comes from this portion Commission on sales. Per transaction, the marketplace generally charges a commission, which is their core area of revenue. The commission may vary as per category to category- depending upon the general margin structure.

· Payment Gateway fees

o Though uncommon nowadays, the marketplace business may charge a payment gateway usage service fee to the sellers (in general). Digital payment methods have become a norm nowadays, and without them, it is difficult to do any transaction.

· Selling Ads (promoted brands, banners for display etc.)

o The second most core source of revenue for a marketplace business is selling ads. There are tons of sellers offering similar services and products. To compete, one would like to be visible right at the top. These “slots” are paid ad slots that could be purchased from the marketplace to get a better “visibility”. They are generally denoted as “Ad” or “Promoted” to be transparent to a customer.
o Apart from visibility slots, the marketplace can sell banner ads – this is generally useful for new sellers/brands that want to create a brand image. These banner ads are also known as carousels or Tiles.

· Featured Stores

o You would have seen “stores” on Amazon. Dedicated stores to that brand – which is done in collaboration with the marketplace. This special visibility of assortment generally comes at a premium to the seller.

What are the areas to be considered while writing a marketplace business plan? And How do you validate your Marketplace business idea?
Writing a marketplace business plan ( https://www.yourretailcoach.in/business-model-development/ ) is a must. To start an online marketplace, It should cover:

· Researching your target Audience: Identify your audience. Both sellers and buyers. You would need to do a demand analysis study to identify which segments of the audience are lucrative enough to target. Apart from segmentation and demand analysis, you also need to do competitor analysis to identify your threats and differentiating factors. This is the step that helps you understand the viability and feasibility of your marketplace business idea.
· Revenue Model: As stated earlier, identify what your revenue sources are going to be.

This is a key area of any marketplace business idea. The options are :

o Sign Up fees to Buyers
o Listing Fees to Sellers
o Commission on Sales
o Payment Gateway fees
o Selling Ads (promoted brands, banners for display etc.)
o Featured Stores
o Membership plans to buyers offering a set of differentiated services

· Financial in Place: Having a marketplace financial model is the stepping stone to success. A sales projection for the next five years is required. It will help you in understanding

o Your Cashflows
o Breakeven points
o Allocating money for branding and promotion
o Capital required

· Operations: Identifying the building blocks of the business. It includes

o Sellers: What would be your business strategy ( https://www.yourretailcoach.in/business-plan-writing-services/ ) to acquire them and keep them satisfied
o How do you make their onboarding smooth and easy?
o How do you verify the credibility of their documents and business?
o Operation and Product Aspects
§ What Product range is to be listed (catalogue management)
§ Which Payment gateway to be used?
§ Order flow management features
o Marketing: The strategy around promotions as that is what is going to get you both the sellers and buyers
o Customer Relationship Management
o Maintaining and managing the software/code

· Marketplace Features

o Another reason for failure is building and spending time and effort on features that consumers do not use. Start basic, only with essentials. And develop gradually. Start your differentiating factor. You need to consider essential elements from a buyer, seller and marketplace side- all three sides.

· Launch: the last step is the actual launch to consumers and sellers.

o Plan for launch
o Roll out a fundamental and essential version
o Collect feedback and improve
o Ensure experience to both buyer and seller
If you have a market business plan idea in mind- get in Touch with YRC, and we shall help evaluate it and come up with a concrete business plan.
Get advise for Retail Business Consulting : https://www.yourretailcoach.in/contact/

YourRetailCoach
Pune, India–411016
Phone: +91-9860-426-700
Email: consult@mindamend.net

YRC is a Management Consulting Company, especially for the B-C Sector.
Our expertise lies into designing of Standard Operating Procedures (SOPs), Franchise Development, Strategy & Operations services, Process Audits & Training.
We help companies to organise their operations and expand through best management practices.

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Online Marketplace Business Plan here

News-ID: 2354983 • Views:

More Releases from YourRetailCoach

YRC Simplifies Choosing Store Layouts in Retail
YRC Simplifies Choosing Store Layouts in Retail
Given the increasing problems in getting real estate space in preferred locations and ensuing space restrictions faced by retailers, retail consultants YRC touched base with this issue in a recent message. The retail experts emphasised that picking the best-fit layout plan is not problematic if the deliberations made are on point. In addition to that, an understanding of the common layout models helps identify and apply the right layout plan.
Rise of Co-Working and Emerging Business Challenges
Rise of Co-Working and Emerging Business Challenges
The rising popularity of co-working spaces as a commercial avenue has also brought many new, unseen challenges for businesses in this sector. Business consulting firm ( https://www.yourretailcoach.in/ ) YRC has come out with certain relevant insights on this topic in this communiqué addressing aspiring entrepreneurs who are thinking of starting a co-working business and looking for co-working business solutions. 𝗠𝗲𝗮𝗻𝗶𝗻𝗴 𝗼𝗳 𝗖𝗼-𝗪𝗼𝗿𝗸𝗶𝗻𝗴 Co-working spaces can be considered as clubs or gyms
Starting a Plus Size Clothing Business
Starting a Plus Size Clothing Business
In this communiqué, retail and eCommerce consulting brand, Your Retail Coach (YRC) addresses aspiring entrepreneurs on starting a plus size clothing business. In consideration of the novelty of this product category and various emerging challenges faced by apparel businesses, YRC's team of retail and eCommerce consultants speaks on addressing these challenges and emerging as a successful and sustainable brand. 𝗙𝗶𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲 Is the business idea of starting a plus
Retail Experts YRC on the rise of Shop-and-Go technology in Africa
Retail Experts YRC on the rise of Shop-and-Go technology in Africa
With capabilities to transform the shopping experience, Shop-and-Go allows customers to check out by scanning their purchase items and paying from their smartphones. This technology is known by different names (e.g. Scan-and-Go) but the essence is the same. As Shop-and-Go technology is beginning to gain popularity in many African countries, retail consulting firm - YRC ( https://www.yourretailcoach.in/ ) shares insights on the reasons, advantages, suitability, and the future of Shop-and-Go

All 5 Releases


More Releases for Marketplace

Construction Service Provider Marketplace
Finding skilled, experienced, and reputed construction service providers from the relief of a place is no longer in the realms of fantasy but reality nowadays. The online platform connects people with verified and trusted construction service providers so that people can construct the property of their dreams without any hassle. Moreover, faulty architecture designs, shoddy construction work, and costly litigation are the major issues that keep people from having a good night's
01-13-2020 | Sports
3Beats
3Beats, The Online Marketplace for Equestrians, Launches Multi-Vendor Marketplac …
Susy Shearer, owner of Highline Tack and Fineline Tack, and website developer/graphic designer Susan DiFelice, creator of Allpony – Horsemanship for Kids, both life-long equestrians, have just launched a joint venture called 3Beats. 3Beats.com connects buyers and sellers of premium new and used English tack, riding apparel, and stable equipment, as well as offers a place to buy and sell horses. Sellers and buyers can view and post listings, make
Multivendor Marketplace For Opencart Adds Comprehensive Marketplace Capability
Purpletree Multi Vendor Marketplace for Opencart extension is a comprehensive solution to add Vendor functions into any Opencart Marketplace store. Features like Vendor Dashboard, Vendor Panel, Commission setup, Settlement management, Product Management by vendors, Shipping management by vendors make it a desirable extension for any store sourcing products from multiple vendors. Multi-Vendor Cart System • Buyers can add products from multiple vendors in single cart • Checkout and place order for
Inflect Launches Global Marketplace
Platform Provides Market Intelligence for the Purchase of Data Center and Network Services SAN FRANCISCO – May 7, 2018 – Inflect, Inc. (“Inflect”) announces today the launch of its Global Marketplace, providing users with accurate, actionable data for the purchase of data center and network services.  This no-fee, no-obligation marketplace allows buyers to access comprehensive, up-to-date information about the value propositions of each provider’s offering. The launch of Inflect’s Global Marketplace marks
DeSimone Joins Marketplace Title
Joe Taylor, owner of Marketplace Title, is pleased to announce that Rachel DeSimone has joined the company as its Licensed Title Agent/Escrow Officer. The company, now in its 10th year, has expanded to include seven employees, several of whom have been promoted from within.   Originally from Philadelphia, DeSimone has lived and worked in the Naples area for more than 30 years as a real estate paralegal at prominent law firms such
Online MarketPlace Script
Thumbtack clone is a service provider platform, where customer can recruit local services and acquire quotations quickly. It is a best platform for service professional and job providers regarding service categories such as business, web design, legal matters & technical supports etc. Why Thumbtack clone? Roamsoft has launched awaited clone script of Thumbtack states notion of online marketplace business and includes multiple essential features. A source of the script is