When creating your own marketplace, it’s important to include certain keys to make sure that it’s successful. This article provides certain elements that are essential for the smooth operation of your online marketplace. Aiming toward these will ensure that you are streamlining your business in the right direction.

8 Elements to a successful marketplace

Marketplaces

1. Easy Matching

As marketplaces are places of control and convenience, your service should make the matchmaking process effortless– a platform that connects seamlessly and in the right direction. Technology and research are key for achieving this.

2. Liquidity

Making the marketplace self­-sustaining is essential; there should be the correct flow of supply and demand, without excess on either side that threaten the balance. This can be local in the beginning, and then expansion may happen. Starting small is crucial to achieving this.

3. Pricing Control

The reason why people are taking alternative digital routes to the same service is based on price point. While it may not be the cheapest option, it should maintain a healthy profit margin while being lesser than the market premium. Various test runs are needed to optimise this variable, but once achieved, it works to attract your sellers.

4. Trust and Safety

This is still questioned in countries where internet penetration and services have not been embraced unequivocally. How do we trust something that is online and intangible? What is the guarantee?  Well,  review  systems  that  can  be  verified  are  your  best  bet, along  with collaborations with more legitimate businesses and governments.

Online shopping mobile

5. Mobile first approach

Tying in with easy matching, this aspect helps boost demand immensely by having your service available everywhere, at the easy touch of a button. Thus apps and other software are valuable tools to capitalise on and invest in.

6. Destructive Economics

You should be revamping and renovating certain stagnant sectors of the market. Pulling customers toward yourself, which is a necessary side effect of no innovation,  is essential for your growth.

7. Instant Gratification

Easy, simple, fast are the watchwords of the sharing economy, and its marketplaces. Thus, providing services efficiently, and instantly is necessary for success.

8. Chicken and Egg Problem

Maintaining and thriving on both the required supply and demand is the last and one of the most frustrating challenges. However, with the right approach, research and guile (Airbnb can be a stellar example) you can overcome this as you tap into the market for getting your own share.

While  this  article  is not the ultimate key to unlocking your own entrepreneurial venture regarding online marketplaces, ­which comes with vision and a combination of several factors. ­It is always helpful to keep certain fundamentals in mind, especially when the sharing economy is now seeing its exponential rise. The online marketplace model is here to stay, and you can optimise yours by getting the right idea.

What are your marketplace tips? Tell us below or tweet us!