E-commerce has become a booming industry because people, as well as businesses, are looking to fulfill their buying requirements through online platforms. This trend can be leveraged to generate good revenue by starting an online marketplace that acts as a meeting ground for vendors and customers. The owners of these platforms do not possess any inventory. They allow buyers and sellers to register on the website and connect with each other.
Marketplaces can earn revenue in different ways. They can ask suppliers/ vendors to subscribe to a paid plan for becoming members for a specified period. Another way is to charge a commission on every successful transaction that takes place on their platform. Marketplaces are categorized on the basis of the product/ service type they deal with. A vertical marketplace will offer only a single type of product or service. Horizontal marketplaces sell different types of items but all the goods will share a common characteristic. Finally, global marketplaces sell all kinds of products and services. Whatever be your choice, you need a well-planned marketplace website to run a successful venture.