4 Key Factors for Building a Successful Marketplace
November 30, 2018 by Vinay Johar
The marketplace is the hottest trend these days. Getting all the services on one platform is what every user needs. However, running a marketplace requires a lot of planning, monitoring, and proper execution. This is because you have to deal with numerous sellers and buyers simultaneously and ensure a seamless flow of operations.
I am listing down four essential factors which are crucial for having a successful marketplace. If you restructure your platform based on these factors, your business will surely grow.
1. How Will You Grow Your Marketplace?
Use network effects where every user enhances the value of your product. Having global network effects in your business is advantageous as it will influence users from across the world. Thus, there will be a global touch. Your marketplace will have a global reach. Create a marketplace that can be used by buyers/users anywhere in the world.
2. Simplify Search
There are marketplaces where the end-users have to search for the products on their own. This means that there is a wide range of options available to choose from but searching for the right app/product can be a challenge. This can be solved by creating filters for options, showing up the most popular options first, etc.
3. What’s in for Buyers and Sellers?
Trust and Convenience are the two factors that lay the foundation of a buyer-seller relationship. The buyer should trust that all the products/apps in the marketplace are qualified. Product reviews are an excellent way of building trust among buyers.
A marketplace should facilitate convenience to both buyers and sellers by providing a seamless payment process and a quick messaging platform.
4. High Frequency of Interactions and Transactions
More number of interactions means more activity on the platform. Just ensure that frequent interactions take place between different parties. Also, if your transactions are big in size, they will provide value to your marketplace.
In some marketplaces such as Uber, there is a high frequency of usage, but transaction size is quite small. Make sure your marketplace doesn’t have a low frequency of usage as well as transaction.
Howsoever new technology you offer, it is a must to adopt the basic elements of a marketplace. RChilli is soon coming up with its new enrichment marketplace. Contact us to know more about it.