Auction Marketplace Checklist
Build with right platform & features
Manage your Vendors
Grow with the right strategy
Launch Your Marketplace
The latest report by Technavio noted a trend in growth of online auctions to be around$1.9 billion progressing at a CAGR of 9.7% from 2021 to 2026.
Encouraged by the ease of ordering at home and the ability to quickly compare prices and product reviews among retailers the annual rate of increase in online auction is about16.1% to $934.2 billion in last five years. If online auction is your thing, don’t hesitate to take a look at this guide.
Most auctioneers supply bidders with a catalog ahead of time.
Art is one of the item whose value does not depreciate over time
The entire Roman Empire was once put up for Auction
Select Your Platform
Select the best plan that suits your marketplace business
CMS Platform Recommend
CMS is a content management system with a set of scripts for creating, editing, and managing site content.
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- Add any feature compatible with WordPress
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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
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.
Why not add different airlines, cab services, and bus services sellers to your marketplace and allow customers to book journey from the comfort of homes.
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
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.|
|Time of work||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