Auction Marketplace Checklist
- Build with right platform & features
- Manage your Vendors
- Generate Revenue
- Grow with the right strategy
- Launch Your Marketplace
Select Your Platform
Decide the platform which you are going to use to build your marketplace
CMS Platform Recommend
CMS is a content management system with a set of scripts for creating, editing, and managing site content.
- Get ready-made infrastructure from the provider
- Add any feature compatible with WordPress
- With many developers, save time
- The Support team's got your back
- Save cost on development
Custom platform is created keeping specific needs of users in mind.
- Personalize your platform
- Added feature equals to added cost
- Customisation takes time
- Create a unique platform
- Not ideal for future customisation
Top Auction Marketplace Features
- Simple Auction
- Reverse Auction
Time Management tools
- Buffer Management
- Proxy Bid
- Silent Bid
Payment Management Tool
- Flexible and Secure Payment
- Flexible Time Range
- Automated Notification reminders
- Voucher and Coupon Code system
Marketplace Analytics Tools
- Business Analytics Tool
- Detailed Sales Report
Know Your Vendors
Understand the variations available in the marketplace
Collectors willing to sell collectible items like - comics, stamps, coins and others are sure to find buyers who think like them. Just be the platform that connects them.
Paintings, pottery, sculptures can adorn both your house and marketplace. So if you are thing about adding artists or collectors of art to your list - go ahead!
Pre-released smartphones, gaming supplies and electronics gadgets - to sellers looking to get the best price this might be the temptation they can’t pass.
Nothings sells like hot cake than baubles and pretty pearls. Try putting up exquisite jewelry on your list to drawn in beautiful customers.
Antique and vintage items like - crockery, pottery, paintings can give a unique insight into previous decades and centuries. So if you happen to know an antique seller be sure to add him/her.
Land and Property
Property and land sell like hot cakes. Be the bridge that connects sellers to the right bidder/ buyer .
Solve the Chicken and Egg Problem
Who Comes First Buyers or Sellers? Easy tips to add sellers
Marketplaces are built on the premise of buyers and sellers transacting with each other. But when you start, you have none of those. So how do you convince sellers to join a platform without buyers and vice versa?This problem is referred to as the chicken and egg problem of online marketplaces. Read Here to gain an in-depth insight.
Ensure excellent service providers
Build a community
Find an enterprise client
Be the single-player
Promise to find buyers for your suppliers
Create a super niche and leverage
Marketplace Monetization Strategy
This is the most common way for an online marketplace to make money. A seller pays a predefined % only when they make a sale. This monetization strategy is best for small transactions. Uber and eBay work like this, for example. The platform usually gets a commission fee of 5-15%.
Choose this model if you don't want to depend on the sales volume. Just charge your users a small fee every month or once a year. You can also have different subscription packages. Offer limited functionality for free and the full package for a monthly fee, for example. Or charge only the vendors. Or only the clients. You get the idea.
If your marketplace has a lot of traffic and active users you can implement a listing fee. A user can place ads for free. If they want their ad to be placed above all the free ads from other users they can pay for the placement.
Pay Per Contact
This is a common monetization model for a service marketplace. There is a fee to contact a customer, while no one guarantees a successful transaction. In this case, the vendor relies on long-term cooperation with the client.
A pay-per-action revenue model implies the vendor has to pay a fixed amount when a client performs an action. For example, when a user books a table in a restaurant through the marketplace, the restaurant pays a fixed fee to the platform.
You don't have to stop at one monetization strategy. Many marketplaces use a combination of multiple monetization strategies. The ad-vantage of the mixed model is that it creates additional value for some marketplace users. While not interfering with everyone else's work.
Study of Important Marketplace Module
|Type||An all-inclusive auction marketplace.||Etsy is an online auction site for handmade goods and crafts|
|Revenue Generating Process||eBay derives maximum profit by charging its sellers listing fees, advertising fees and after-sale commission.||Etsy charges a listing and a transaction fee from its users for the use of the website. Along with offering charges for availing extra features|
|Mode of Operation||Sellers registered under eBay have the option to either list their products for auction or to sell them at a fixed price.||Registered sellers can list items for auction, wait for the highest bidder and then complete the transaction.|
|Analysis||What makes eBay successful is that fact that it in one of the first online auction website. .||What makes Etsy stand apart from its competitor is it’s focus on niche which makes client management easy.|
|Host can freely list out the dates when they'll be able to rent out their services and so||Service Providers can choose the time and date and also separate slots according to their preference|
Grow Your Marketplace
If you are looking to grow your business, here are a few option for you to try
Make sure to analyse your competitors
Product price should be the same as market price
Surprise offers always keeps customers coming back
Social Media Marketing
A current generation marketing strategy