In the last blog, we discussed online marketplaces and the reasons why entrepreneurs and enterprises are moving towards online marketplaces. Once you have a solid marketplace idea, it is indeed easy to set up an online marketplace. But the generation of good marketplace ideas is easier said than done.
The best ideas come as jokes. Make your thinking as funny as you can
In this article, we will focus on what are some of the key points one should address while generating online marketplace ideas.
Solve A Problem
One of the main reasons why most online marketplaces fail is that they do not solve a problem. Most young entrepreneurs jump the gun, in starting an online marketplace and fail to grow their user base.
Sharing Economy has triggered entrepreneurs to believe that sharing of any asset would be a good idea for a marketplace. What most of them overlook is if the solution solves any problems. It is essential that your marketplace targets a pain point or latent need in the market. In a marketplace business, it is also imperative that the solution is aimed at both the parties; the sellers and the customers.
Going Wide Or Narrow
Another issue that entrepreneurs face is the choice between starting a horizontal or vertical marketplace. A horizontal marketplace like Yelp aggregates a wide range of categories. A vertical marketplace like Airbnb concentrates on solving one single problem: some people have vacant space in their houses and most travelers need temporary accommodation and a good experience.
It is recommended for entrepreneurs to aim for a vertical platform as they require deep insights of one industry or solution. Marketplaces that cater to a niche category have higher competitive advantage but require tremendous market testing as they involve inducing behavioral changes. Marketplaces that are local copies of global players lack the novelty but still do good as the entrepreneurs have more knowledge about the local community than global players.
Testing The Idea
Once you decide the problem to be solved and the approach, it is necessary to test the idea. Every idea sounds amazing when you discuss it with a few people but eventually what decides the fate of a marketplace is if the market is favorable for idea.
The first step to is market research. Use the internet to conduct a thorough market analysis complete with competitor analysis. Gather enough information about the current industry trends. Try finding if similar ideas were executed in the past and what challenges did they face. It will then be easier to figure out if your marketplaces can overcome these challenges.
The next step is to discuss the idea with as many people as you can, especially people who fit the customer demographics for your platform. Analyze whether they will be willing to pay for such a solution. Most startups fail to make the platform profitable as the customers are not willing to pay full price for the service on the marketplace. Thus, It also becomes imperative to establish a revenue model post the research.
Choosing The Right Platform
Once you have the idea, it is necessary to choose the right platform to build your marketplace on. The marketplace solution needs to be robust, scalable and easy to integrate with other systems like a delivery management system or payment gateways. The right platform will provide the right support and help your business grow.
Few Online Marketplace Ideas
- Restaurant Discovery and Order Management.
- Marketplace for Cannabis Dispensaries.
- Hyperlocal Marketplace for Grocers.
- Beauty Services and Products Marketplace.
- Collaborating Professional Healthcare Services.
- Hyperlocal Marketplace for Florists.
- Real Estate Marketplace.
- Hyperlocal Marketplace for Laundry Services.
Do you have a good marketplace idea and looking for a platform to create your marketplace?
Check out Yelo today and discover the easiest way to transform your online marketplace idea without any technical hassles. With Yelo, create your own customized marketplace website/apps for selling products, providing services, collaborating freelancers or renting spaces within minutes. On Yelo, set up a marketplace for Groceries, Laundry Services, Cannabis Dispensaries, Restaurant Services, Beauty Salons, Healthcare Services, Florists, Grocers, Real Estate Agencies and a lot more.
Use features like Appointment Scheduling, Catalogue Management, Inventory Management, Merchant Management, and a lot more to create your own marketplace website/apps in any language of your choice. Yelo provides a fully customizable marketplace website complete with your brand name and domain, a fully responsive app for IoS and Android to access your website on-the-go, an admin portal for full control and merchant portals where your sellers can list their products and services. You can integrate Yelo with any other system like Delivery Management or Payment Gateways easily.