There are many reasons for companies to create a marketplace and goals they want to achieve with it. One thing is common: a marketplace is a new business model. It can become a new source of income and help develop other opportunities.
New ways of doing business. Companies not only sell their products and services directly to customers. But also provide sales to third-party sellers. At the same time, as the number of such sellers grows. The assortment of the marketplace expands due to their offers. In this case, it is necessary to attract partners who will operate their stores. Examples include Walmart Marketplace, Best Buy Canada, H&M.
Expanding the ecosystem
The traditional commercial ecosystem implies that manufacturers and distributors are engaged in the supply of goods and services. And the intermediary company ensures stable demand from customers.
Marketplaces can bring new participants to the market along the value chain. Such as developers like ecommerce development in dubai. Technology and financial services providers, and even competitors. The marketplace is a stimulating basis for creating diversification. Examples include the logistics marketplace RIO of the German car manufacturer Volkswagen and the website of duty-free shops at Frankfurt Airport.
New marketplace opportunities
At the initial stage, companies need to create a technological platform to connect sellers and buyers. As well as provide partners with tools to ensure transactions and business management. This is much more difficult than creating a traditional direct trade model, because each seller has different products and prices, and each manages their own sales. But this is just the beginning. Successful work requires additional capabilities: finding new partners and a high level of customer service necessary to attract them. Find this ecommerce development company dubai.
Finally, it is necessary to constantly expand the range of goods and services in order to maintain the attractiveness of the platform for both sellers and buyers. An example is the railway marketplace StationOne of Alstom. Therefore, the marketplace opens up huge horizons for development for the company.
New sources of income. The marketplace will generate income not only from direct sales. Logistics, payment processing, technical and service maintenance, advertising, affiliate sales commissions – all of this can become a source of additional profit.
Marketplace Analytics
Identify your motivation and the benefits of creating a marketplace
E-commerce platform managers must have a clear understanding of partners. Their problems and the difficulties they may face. Only then will they be able to clearly explain the benefits of cooperation with the marketplace. Ecommerce development company in dubai have identified three main motives for launching an enterprise marketplace and the benefits they provide.
Improving marketplace business efficiency and reducing costs
Many organizations, especially in the B2B sector, face the problem of inefficient and complex buying and selling processes. Orders are not only processed manually, but often require personal meetings, phone calls, sending documents and email correspondence. Also, orders can be composite, that is, include several hundred or thousands of products from different suppliers with different delivery times and methods.
In addition, when purchasing on classic B2B portals. Supply chain information is not always transparent to the buyer: they do not always know where the suppliers are or who offers the best prices, products and services. And buyers do not have the opportunity to negotiate on their own to achieve the most favorable terms of the deal. Marketplaces allow buyers to communicate directly with suppliers and make information more transparent, which increases efficiency and reduces procurement costs.
Optimization of marketplace purchase and sale processes
Marketplaces are especially important for manufacturers who have to constantly deal with a large number of suppliers and buyers.
Sourcengine, a marketplace for electronic components by Sourceability, allows manufacturers to find prices in a few seconds, not months. The company offers distribution services for finding suppliers of the necessary goods. Previously, this process was very cumbersome, since some catalogs of electronic components can include thousands of items. Finding suppliers and obtaining specifications for each item could take weeks or even months. Sourengine currently connects around 1,700 suppliers worldwide with OEMs, providing tools that allow you to upload specification requirements and receive a corresponding technical and commercial offer within seconds.
Transport system manufacturer ecommerce development dubai marketplace connects rail operators with suppliers of rail system components and significantly simplifies and speeds up the ordering process.
