Get All Access for $5/mo

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

By Ankush Mahajan

Opinions expressed by Entrepreneur contributors are their own.

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

Shutterstock

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.

Ankush Mahajan

Digital marketer & e-commerce consultant at FATbit Technologies

Ankush works as a senior digital marketer and e-commerce consultant at FATbit Technologies, one of India’s leading custom web design/development & start-up friendly e-commerce solutions company. His expertise lies in branding and formulating marketing strategies for business of a number of industries. He has been active in online marketing services for past 5 years.

News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Living

70% of Small Business Owners Experience Monthly Burnout. Follow These 3 Rules to Avoid the Same Fate.

Here are three guidelines to help entrepreneurs achieve balance, growth and success in both their professional and personal endeavors.

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Business Process

How CEOs Can Take Control of Their Emails and Achieve Inbox Zero

Although there are many methodologies that leaders can use to manage their emails effectively, a consistent and thought-through process is the most effective way to systemize and respond to emails and is a step of stewardship for the effective leader.