Marketplace is an online platform for buying and selling goods.
Advantages of marketplaces
Усі товари (послуги) в каталозі структурують за видами, класами, категоріями для полегшення пошуку необхідних позицій.
1
Large volume of traffic
Marketplaces are large companies that invest heavily in promotion and attract a lot of traffic. This does not guarantee that all visitors to the site will go to one merchant, but it will be a little easier for them to receive orders.
2
Organized work
Marketplaces have well-established requirements for content quality, customer service, claims handling, etc. It is beneficial for marketplaces to ensure that merchants' products are presented in the best possible way, as their earnings depend on it. At the same time, it allows merchants to gain valuable experience in e-commerce and learn how to work with customers properly.
3
Quick start
It is not difficult to enter the marketplace if you understand all the requirements of the platform. Entrepreneurs will receive sales almost immediately - they just need to follow the announced rules of operation.
Disadvantages of marketplaces
Усі товари (послуги) в каталозі структурують за видами, класами, категоріями для полегшення пошуку необхідних позицій.
1
High competition
On marketplaces, your products are placed next to hundreds of others. You may even have to sell identical products and differ from your competitors only in price. Because of this, even though there are many users, only a fraction of potential customers will be interested in your offer.
2
No development of your own brand
Instead of developing your own brand and becoming recognizable, you will invest in promoting a large platform. Customers hardly ever remember from whom they bought goods. If they made an order on the Rozetka website, they will assume that they bought the goods from a well-known company.
3
Limited sales potential
Merchants are highly dependent on the marketplace and have limited influence on sales. The marketplace can change the algorithms for issuing products in the catalog or introduce new rules that will limit the number of orders for the merchant.
So what is a marketplace?
В інтернет-магазині може бути дуже великий асортимент
This term refers to electronic platforms for trading goods or services. That is, a marketplace is a kind of intermediary between the seller and the client.
These platforms have certain similarities with hypermarkets. There are many sellers on one service, and customers can choose goods, compare and buy them in different stores without leaving the site.
Інтернет-магазин не має географічних обмежень
The main purpose of a marketplace is to provide interaction between buyers and suppliers. Usually they do not form orders and do not organize delivery, but only accept orders and pass them on to the seller.
Marketplaces also drive traffic for suppliers, are responsible for analytics and usability processes, and provide marketing support.
Who benefits from working on marketplaces?
В інтернет-магазині може бути дуже великий асортимент
First of all, the marketplace is beneficial for small businesses. By using the existing customer base of the platform, companies can increase their visibility and attract new customers. And they don’t need to invest in their own sales platform. Thus, they can benefit greatly from using marketplaces to attract a wider audience.
Інтернет-магазин не має географічних обмежень
Second, such platforms are suitable for individuals who want to sell old or unique items. Platforms such as eBay and Etsy are particularly well suited for vintage or handmade goods. They provide an opportunity to reach buyers who value unique and one-of-a-kind items. And, of course, sellers who want to reach a global audience should list on large platforms.
Marketplaces - questions and answers
A marketplace is an online platform that brings buyers and sellers together to make transactions. It typically provides a range of services in exchange for a commission on sales made through the platform. Marketplaces offer a convenient and cost-effective way for sellers to reach a wider audience and for buyers to access a large selection of goods or services.
To create a marketplace, technologies such as PHP (Laravel or Symfony frameworks), Python (Django framework), Ruby on Rails, as well as JavaScript (React.js or Angular) for the frontend and Node.js for the backend are usually used.
The main functions of the marketplace include a user registration system, profile creation, the ability to add products or services, a search and filtering system, a payment and order tracking system, as well as rating and reviews.
To ensure security on the marketplace, it is necessary to use an SSL certificate for data encryption, install two-factor authentication, regularly update software, and use monitoring and intrusion detection systems.
