The Marketplace Business Model

THE MARКЕТРLACE BUSINESS MODEL WHAT ? Marketplace platforms attempt to connect consumers directly with the producers or service providers by cutting out the middleman while maintaining convenience and quality. As of Aug 2015, 4 of the world's 10 most valued startups are marketplaces. UNDERSTANDING YOUR AUDIENCE Identify the core value unit, producers, consumers and the customers. TaskRabbit airbnb (Value Unit - Ability to outsource everyday jobs) (Value Unit - Accommodation Listings) PRODUCER People who have signed up to be taskers PRODUCER People listing their properties for rent CONSUMER People in need of someone to do their chores CONSUMER Travelers looking for accommodation CUSTOMER People who book places on Airbnb CUSTOMER People who hire Taskers on this platform TYPES OF MARKETPLACES SINGLE COMMIT DOUBLE COMMIT Buyer Picks O airbnb Upwork On AirBnb, the locals who list their Clients (Producers) on Upwork post a job on the spaces act as suppliers and the travelers platform and freelancers who act as consumers who book these spaces by paying rent, act as bid on the job. The double commit model comes buyers. So, buyer chooses the supplier. into action as clients have the ability to invite a freelancer and choose him for the task and on the other hand freelancers have the ability to bid on a task posted by the client. Supplier Picks UBER Anyone who owns a car and is ready to work can be an Uber driver, acting as a supplier on the platform. After a person places a request for a ride, the supplier picks and contacts the buyer. WHICH WAY TO GO ? GO ? V HORIZONTAL Vertical e-marketplaces provide online access to businesses vertically up and down every A horizontal marketplace connects buyers segment of a particular industry sector and sellers across different industries or regions. such as automotive, chemical, construction Example : Amazon and eBay. or textiles. Example : Etsy and GlamSquad Some factors that are supporting the growth of vertical marketplaces are - • Better experience when it comes to facilitating an exchange in a particular vertical · Huge growth in market size that is willing to make online transactions. Availability of advertising mechanisms like FB and Google. Proliferation of mobile devices · Advancements in payment mechanisms and mapping technologies MARKETPLACE PLATFORM STACK MARKETPLACE / COMMUNITY USERS CONNECT AND INTERACT WITH EACH OTHER IN THIS LAYER TECHNOLOGY INFRASTRUCTURE PROVIDES THE INFRASTRUCTURE ON TOP OF WHICH VALUE CAN BE CREATED DATA MATCHES USERS AND CONTENT AND POWERS RELEVANCE ELEMENTS OF A SUCCESSFUL MARKETPLACE 1 21 31 EASY MATCHMAKING ATTAINING LIQUIDITY Unlike social platforms both the stakeholders come to the marketplace for a specific purpose, i.e., making a successful transaction/exchange of product/service. Liquidity is the state when a marketplace becomes self sustaining. PRICING CONTROL TRUST & SAFETY An effective pricing control strategy will give you more traffic and an upper hand Trust is often established by many rules and feedback loops in-built into the system. over others. 6. MOBILE FIRST APPROACH UNIT ECONOMICS Taking a mobile first approach becomes a much better value A rough estimation and a breakdown of Customer Acquisition Costs and percentage coming back to the platform is beneficial to begin with. proposition if access to a particular product/service is required when someone is mobile. BENEFITS OF A MARKETPLACE 24 24/7 facility Self-service shopping More customised service Accurate orders Lower costs Larger catalogues Transaction security and buyer protection policies Accurate and prompt payments Quicker order amending and cancelling facilities No space or time limitations MARKETPLACE STARTUPS FUNDING ARTSY $50.9M PADDLE 8 $17M UPWORK $74M CROWDFLOWER $28M ART CROWDSOURCING UBER $8.2B DIDI KUAIDI $4.4B PEEK $6.9M INCREDIBLUE $2.6M TRANSPORTATION EXPERIENCES AIRBNB $2.3B REDFIN $167.8M ZOCDOC $225M PRACTO $124M REAL ESTATE HEALTH & WELLNESS HIRED $32.7M UDEMY $113M BRANCH OUT $49M DUOLINGO $83.3M JOBS KNOWLEDGE FLIPKART $3.2B SNAPDEAL $1.5B THUMBTACK $148.2M TASKRABBIT $37.7M E-COMMERCE LABOR STRIPE $190M SQUARE $590.5M TILT $67.1M INDIEGOGO $56.5M FINANCE CROWDFUNDING GET IN TOUCH with us if you are looking to develop a marketplace platform! +1984-664-2355 [email protected] Sources http://www.statista.com/chart/1967/startups-valued-at-one-billion-or-more/ https://www.crunchbase.com/ https://angel.co/ https://bvp.app.box.com/BVP-Marketscape http://www.marketplacecommerce.com/benefitsofmarketplace.php clicklabs ...... ERT -CAL D- ........... OD