What is Marketplace? This is a business model that is being talked about a lot these days. In the article below, Write Bai Xuyen Viet will help you learn about this unique business model and its outstanding features. Let’s find out together.
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Article table of contents
2.1 Categorizing Marketplace by partners2.2 Categorizing Marketplace by product?3 What are the advantages and disadvantages of selling on Marketplace?
What is Marketplace?
The concept of B2C in the business field is not new. It means Business to Customer. This is a form of sales between businesses and customers made through the internet.
However, this business form requires businesses to spend large amounts of money to invest in warehousing and related services. Such as customer care, freight, online operating services.
Marketplace is a concept that is being talked about a lot in business
The cost savings for those services make a lot of sense. And Marketplace appeared for that purpose. So what is Marketplace?
Simply put, it is an exchange established to act as an intermediary between the seller and the buyer. All commodities will be centralized on a single exchange. Usually, it is shown on an online shopping website like Tiki.vn, Lazada or Sen Do…
At this point, finding the buyer’s goods is very simple. Just through the Website, they can find many sellers of the same product.
To put it simply, Marketplace is a virtual marketplace. That is the place where sellers and buyers access the same Website to shop and introduce goods.
Currently, the ways of classifying Marketplace in practice are very diverse. Below, let’s take a look at the most basic, most talked about classifications.
Sort Marketplace by partner
This classification will be based on who their partner is? An individual or business. The Marketplace will then be classified into the following categories.
What is C2C Marketplace?
This is an important model that connects individuals and business households with products for sale with buyers. All done through the e-commerce exchange. With this form, anyone can become a salesperson.
Usually, the C2C Marketplace participants are those with little overhead. They also do not have much money, many sales channels are available.
What is B2C Marketplace?
This is a model that connects businesses and official distributors to customers. This is a sales place for businesses or large distributors. The stores on Shopee Mall are of this type.
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What is Marketplace categorization by product?
Based on the products sold on Marketplace, they can also be classified as follows:
Grabbike is an outstanding vertical Marketplace model
These are the Marketplaces that offer similar products. They can come from many different distributors, manufacturing facilities. But they are all products of the same type. For example, Grabbike offers users a lot of motorbike services from many different operators.
These are virtual markets that provide shoppers with many different products and services. However, it has similar properties. For example, in the same industry, used for the same purpose.
A simple example of this type can be mentioned Now. It offers a wide variety of food products from different suppliers. But they all serve the dining needs of customers.
Tiki works on a mixed model
This is a type of Marketplace that sells a variety of different items and products. Prominent can mention Tiki. This website brings people all the necessary products for their lives.
What are the pros and cons of selling on Marketplace?
If you’re looking to start a business, it’s important to learn the pros and cons of selling through Marketplace. Let’s find out together.
Help sellers approach a large number of potential customers without spending a lot of searching and advertising. Maximize cost savings in business. Highlights are the expenses for management, Marketing, logistics, sales locations… This is really a great advantage for those who have limited expenses and want to have a small business. Marketplace pages All are reputable with great policies for buyers. Therefore, it helps customers feel more secure when buying your products.
Marketplace brings many advantages to business people
What are the downsides of selling on Marketplace
?When you sell a product, you’ll pay a commission for Marketplace.The number of people selling the same item on Marketplace with you is huge. Therefore, the competition has also increased a lot. Most of the Marketplaces currently at all retain the user’s data instead of giving it to the seller. Therefore, you cannot use that data for your future marketing tasks and campaigns.
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Hope you have the necessary information for your business
With the information in this article, we’ve helped you understand what Marketplace is all about. As can be seen, this is one of the great suggestions for business beginners. If you have any doubts, please talk to us.