E-commerce is here to stay. There is no denying this. But as investment and innovation continue to grow within the industry, we’re starting to see new models take shape under the e-commerce umbrella, the most popular being marketplaces. The list of companies that have successfully leveraged the marketplace model to facilitate access to goods and services is impressive. Some of these include Amazon, Uber, Airbnb and Bol.com to name a few.
The model has clear advantages:
The marketplace model
With a Marketplace, a retailer can allow third-party partners to sell on its website. This model creates a win-win-win scenario. Customers win because there is an increased amount of choice at competitive prices. Retailers win in several ways: never missing a sale, almost pure profit commission, no need for inventory, logistics, or service costs, retaining customers that would otherwise have been lost. Sellers win by gaining an additional channel and more awareness for their products. Marketplaces suit all kinds of merchants – from large omni-channel retailers to online pure-plays to small and medium businesses – because they improve customer experience and give trust that the right assortment will always be available.