The face of entrepreneurship has changed in a great way due to online marketplaces’ and the customer demand for shopping online. An online marketplace is an e-commerce site that enables sellers to provide products or service information to interested customers and it enhances online transaction processes. For instance, the biggest online marketplaces globally are Amazon, eBay, Alibaba, Uber, Airbnb and Etsy among others.
The best thing about online marketplaces is how easily you can make sales or purchases from the comfort of your own home, car, or office. The physical contact barrier is eliminated. These online marketplaces account for most of the global sales by just eliminating the geographical barriers, saving on costs and ensuring convenience.
The Phases of Creating an Online Marketplace
1. Find and Modify Your Idea as Well as Validating it with the Real World
Finding an idea and launching a website is the first step in creating your dream e-commerce site. Ideally, you have to know where the inventory will come from and how your business will run successively. Also, articulating your factual motivation for being an online entrepreneur is vital because your strategy will depend on being true to yourself. Many marketers lack the idea that having a rigorous strategy is vital, but you have to be prepared to go the extra mile and incorporate lots of effort and hard work to develop your online community. From various quotes from CEOs of famous online marketplaces such as Airbnb, it is evident that running an online marketplace is not as easy as it seems.
You have to trust the process and take it slow, step by step until you get there. An exceptional market approach, a vibrant business strategy, and your professional experience are all you need to run your marketing platform efficaciously. Lastly, engage and converse with your users early and involve them in the process at every step.
2. Choose Favorable Software
Depending on the type of marketplace you are building, you can choose if you will build it using existing software or you will employ someone who builds the platform for you. These options depend on the budget you are working with and the risks you are ready to take financially. Also, consideration of technical skills and capabilities is highly regarded in this phase. Building a marketplace is no easy task.
3. Launch Your Marketplace
This is basically, making your marketplace open to the public for a while then you start promoting the platform extensively. This forms the vanishing point of many entrepreneurs’ perspectives towards the business but you need to be initially prepared for any outcome whether positive or negative. At this phase, you build a relationship with influencers in your entrepreneurship.
4. It’s Time to Grow Your Bazaar.
Here you keep track of your performance to know areas of improvement and establish buyer as well as seller communities. Focus on the growth strategies that work best for you by use of frameworks such as Bull’s-eye method. By observing closely where your marketplace could improve, testing, analyzing the results and Learning, then your online marketplace will be a success.