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Understanding Digital Marketplace Platform for Business

Digital marketplace platform is the most chosen way to do business. Almost every business now mov into the digital marketplace. So take a seat to read this article to know if it is good or bad.

What Is A Digital Marketplace Platform?

The digital marketplace is an online business platform for both selling and buying needs. It is effective to make life transactional easier for either sellers or buyers. It works like a display window in an offline store.

Digital marketplace is also a venue that matches potential buyers over a product or a service. Digital platforms which are shaped into software or systems can provide the services to the people in common. So they can access every store in the country even in the world by just scrolling the platform.

This kind of platform is a totally new thing for the industry. The goal of using a digital marketplace platform is to build up the business and maintain it in this modern era.

What Is A Marketplace VS Platform?

digital marketplace platform

Platform or marketplace is sometimes being tough to answer by many people. The choice of the path can have implications for identity, strategy, and the growth of business. For that reason, it is really important to decide what is the model that will be applied.

Marketplace is when it plays a role in the transaction directly from the payment process until the product and services are delivered. Meanwhile the platform only connects people and steps aside if it is time to finalize the deals.

How Does A Digital Marketplace Platform Work?

Marketplace works like it plays a role in the transaction without owning the assets. With enough scale, the platform also can optimize the logistics. And they probably add value based on the access to the data.

It works like a digital person in the middle who brings the buyers and sellers into the transaction. They will get what they are looking for and have the benefit for themselves. So as part of the modern era, you may like this system because of its simplicity and the easy way to get.

Which Is An Example of Marketplace Platform?

Online marketplace is already around us since the 90's like eBay and Craigslist. eBay launched and became some place that can be used by sellers and buyers. Other example online marketplace is like Amazon, Etsy, Runnics, Alibaba and many more.

What Are The 3 Main Types of Online Marketplaces?

Types of online marketplace are divided into 3 groups. They are B2B or Business to Business, B2C or Business to Customer, and P2P or Peer to Peer. Lets know deeper about that down here.

1. B2B or Business to Business

This type of market place is where suppliers (wholesale) sell the products and services to buyers in huge amounts. It is usually operated by the third party. The benefit by using this kind of marketplace is you will be able to distribute the products or services to more customers.

Beside that, you will expand your sales channel and you don’t have to create an owned platform and you can start the sale quickly. This type will provide customer experience and improve transparency of the deals. Examples are Alibaba and Amazon.

2. B2C or Business to Customer

This type of digital marketplace platform will not use direct selling and buying processes. This kind of market place will be one stop shops where people can buy things online. Example of B2C is AliExpress that includes thousands of vendors.

The B2C type usually is defined as giant companies such as eBay, AliExpress, and many more. This giant and legendary company already occupied their territory, so it is quite hard for startups to fight with it. But still, as a businessman nothing is impossible.

3. P2P or Peer to Peer

This type of market place works to connect people with similar needs. The concept is that peers are allowed to share products or services. P2P is part of the sharing economy while helping people with optimal use of resources.

The example of P2P is Etsy, Uber and Airbnb. The most exciting fact about this P2P is that maybe today a person is a customer, but the next day he can be the provider of products or services.

Well, a digital marketplace platform seems so challenging but also beneficial for the business. Don’t forget to jump in right away.

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