My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Retail

The Dominance of the Online Marketplaces in the Retail Industry

Considering the growth of online marketplaces, many aspiring entrepreneurs are now looking to launch their own e-commerce marketplaces
The Dominance of the Online Marketplaces in the Retail Industry
Image credit: Shutterstock
Guest Writer
Digital marketer & e-commerce consultant at FATbit Technologies
3 min read
Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

According to stats, one-third of buyers start their online journey from online marketplaces such as Amazon, eBay, Flipkart, etc. In addition, sales on online marketplaces accounted for 52% of global online retail sales. Not only customers but suppliers now also prefer to sell their products at online marketplaces. The high number of suppliers or merchants at Amazon, Uber, Airbnb, etc. is the best evidence.  Inarguably, this is the era of online marketplaces.

Why Online Marketplaces are Worldwide Favorite?

There is a win-win situation for everyone on online marketplaces. The marketplace owner can earn the good amount of commission from the vendors & advertisers, customers can enjoy the better quality of service and competitive pricing, & sellers can sell their products without website setup & managing cost.

Not only marketplaces like Amazon, eBay and Alibaba are taking over the world, but the online marketplaces such as Mudah (Malaysia-based marketplace), Carousel (Singapore-based marketplace) and Rakuten (Japan-based marketplace) that serve the local regions have also grown amazingly over the years.

Considering the growth of online marketplaces, many aspiring entrepreneurs are now looking to launch their own e-commerce marketplaces.

What Kind of an Online Marketplace Can You Build?

Here are different kinds of online marketplaces that you can launch:

  1. Online Consultation Marketplace: Using this type of a marketplace, people can connect with professionals like doctor, lawyers and consultants to get advice or services.

  2. Online Services Marketplace – This type of a marketplace allows people to directly avail services such as online tour and packages, hotel booking and subscription services from sellers. Make my trip and Airbnb are the best examples of an online services marketplace.

  3. Online Products Delivery Marketplace: On this type of a marketplace, people can compare and buy products from different sellers. Then, the marketplace operator delivers the products to them on the sellers’ behalf. Amazon, Flipkart and Zomato are the best examples in this category.

  4. B2B Marketplace: More and more B2B buyers are turning to the internet for research and purchase online.  On a B2B marketplace, sellers can sell their products at the wholesale rate to other businesses. Alibaba & Walmart are two of the popular B2B marketplaces.

  5. C2C Marketplace: On a C2C marketplace, customers can sell directly to other customers. OLX and Taobao are popular C2C marketplaces.

  6. Rental Marketplace: You can start a rental marketplace like Uber, etc. to be part of the growing sharing economy.

Must-have Features in an Online Marketplace

Different types of online marketplaces may have different kinds of features. However, there are certain features that are required in every marketplace, including:

  • Separate vendor dashboard

  • Multiple administrative access

  • Product catalogue system

  • Multiple payment gateways

  • The streamlined vendor payout system

  • Product rating and review system

  • Ratings and reviews for sellers

  • Advanced order management system

  • Responsive website

  • SEO-friendly system

  • Mobile apps for customers, admins & sellers

  • Automated task processing

  • Reporting and data analytics for admin and sellers

  • Integration with third-party tools & POS systems

  • Registration pages for customers and sellers

  • Shipping methods

  • Location-based search

  • Bulk import from different platforms such as Amazon, eBay, etc.

  • Request for Quotation feature (B2B)  

The feature list can be extended as per a business’s requirements.

More from Entrepreneur

Corene Summers helps clients advancing their health, careers and lives overall through reducing stress, tension and optimizing sleep.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Create your business plan in half the time with twice the impact using Entrepreneur's BIZ PLANNING PLUS powered by LivePlan. Try risk free for 60 days.

Latest on Entrepreneur