Are Marketplaces the Future of Online Business?

Nowadays, marketplaces show tremendous growth, so it’s no wonder that this sphere is increasing and spreading all over the world. Marketplaces promise large benefits and if they manage to become leaders in their niche, they will quickly join the rows of companies with billion dollars revenue. 
Moreover, online marketplaces can be considered a phenomenon in the modern economy because most of them don’t even own any premises and goods that need to be stored. A brilliant example is Airbnb which provides millions of stays for people in most countries of the world, although it owns no real estate. Another perfect example is Uber. The company operates worldwide and provides rides without owning any cars at all. What about Aliexpress? Thousands of merchants sell goods and deliver them to any country of the world, although there are no Aliexpress warehouses, merchants work independently just by using one big online platform.

Marketplaces – Business Innovation Model and Our New Reality

To understand why marketplaces have become an integral part of the modern economy is necessary to understand how they work. First of all, the marketplace business model is a third party that helps customers and merchants communicate effectively in terms of the market.

What are the key elements of marketplaces’ success? Let’s have a look:

1. Safety and insurance. Each merchant offering their goods or services on the marketplace signs the agreement that guarantees their compliance with the law and consumer protection. Marketplaces commonly care about their reputation and deal with trustable merchants.

2. Customer-centered policy. Customers should always be satisfied – this is the motto of all marketplaces because the competition is high and it is better to build up a base of regular customers than to constantly look for new people.

3. Convenience and accessibility. The sites are commonly user-friendly with an intuitive interface, lots of payment methods and almost every marketplace has a mobile version that makes purchasing goods and services a pleasant experience. People can order all they want no matter where they live or stay.

4. All-in-one platform. There is no need to surf the web and register on several sites to buy goods from different shops or companies. Marketplaces offer a unique opportunity to register once and get access to thousands of goods and services in one place. It is time-saving and drives the conversion of any marketplace.

5. Fair reviews. Each customer can leave detailed feedback and give a rating on the page where he bought goods or services. Great thing is that the merchant cannot delete negative comments just because he disagrees. If the feedback was unfair, it can be disputed.

6. Loyalty programs. Marketplace merchants show true care and appreciation for their regular clients by providing discounts and special offers.

What about merchants? They also get lots of benefits from dealing with marketplaces. Let’s consider some of them: 

1. A large client base. When becoming a part of a marketplace, a merchant gets access to an international client base. Once the merchant earns the customers’ trust, they tend to become loyal for years and bring more profit by recommending the shop and making regular offers.

2. Fraud detection. It is the task of an internet marketplace to protect both customers and merchants from any fraud attacks. It is always noted or Every privacy policy provides that. Privacy Policy that the personal data is protected and never shared with any parts.

3. Payment methods. Marketplaces offer a wide variety of payment and handle invoicing processes. It is really important as it makes the interaction between customers and merchants easier and quicker.

4. Set of tools. Merchants are offered different tools to manage their activity in the marketplace.

As you see, marketplaces are more than just a bridge between customers and merchants.

Marketplaces in 2022: What is the Prognosis?

COVID-19 lockdown changed the world and made people consider ordering goods and services online on a regular basis. It has become the world’s new reality. Most customers to this day prefer to use the Internet rather than go to the local supermarkets or shops. The popularity of marketplaces is expected to accelerate even more and reach record levels. Amazon takes the leading position and lots of other companies are catching up fast, such as Etsy, eBay, etc.  What are the main future online business trends for marketplaces in 2022?

• Brand owners over retailers. For instance, Amazon prefers working directly with brands rather than retailers as it makes it easier to control the quality of goods and services.

• Q-commerce. Quick commerce is a new super speedy delivery option, maybe the future of e-commerce where goods are delivered within hours, not days. Large marketplaces consider Q-commerce their priority as it helps attract more customers.

• Eco- and environment friendly. People have already understood that the planet’s resources are finite. Certain companies are deeply concerned with promoting advertising that aligns with their eco-friendly values. There have been more and more ways of saving resources and using them wisely. For example, Apple produces packages of smaller size to deliver more items at once which decreases the level of CO2.

• D2C channels. D2C – direct to the customer is a new trend on Amazon and is predicted to be the future trend of online business marketplace. Millions of dollars are invested into aggregators to acquire FBA brands and lead no brand equity policy on the channel. Brands owners are planning to create their own D2C to increase their part on the market.

• New techniques and tools for business. The competition is fierce, so it is time to create new ways of conquering the market. New tools will make communication with clients and logistics easier and more efficient.

Summing Up

Marketplaces are expected to experience global growth shortly, they will become a part of the future of online business. They have already proved their credibility, convenience, and progressiveness. Marketplaces have not only become super potent players in the arena of the world’s economy but also made customers believe that they will change the concept of online shopping and ordering services. The demand is growing which causes the development of other spheres including marketing, AI, and cybersecurity. Will there be any drawbacks? For sure, there will. However, we have already understood that we cannot imagine our life without marketplaces, so they are the future.Each marketplace needs a reliable merchant service as it helps to provide a fast and convenient process of paying for goods and services online. PayDo is the perfect option for merchants who appreciate high speed of conversion and convenience for clients (instant registration, fast top-up, unlimited SEPA, SWIFT and Target2 transfers). Learn more about PayDo here and register today.