Niche Marketplace Checklist
Build with right platform & features
Manage your Vendors
Grow with the right strategy
Launch Your Marketplace
Did you know that Etsy is a billion-dollar company? According to recent projections, they have hit around $13.5 billion in gross merchandise sales.That's pretty amazing for a website that sells handmade and vintage items, don't you think?.
If you weren’t surprised by that,then a niche marketplace like Chewy (a store for pet supplies) had a net income of around $22.3 million includingshare-based compensation expense of $39.7 million. which left us all flabbergasted.
Shoppers who first purchase something on their shopping list are likely to buy unrelated items later.
Even before Amazon came into existence, Pizza Hut delivered pizzas online.
Pablo Peñalver sold his soul for €47.51 on eBay in 2007.
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.
- 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 Niche Marketplace Features
Know Your Vendors
Understand the variations available in the marketplace
Handicrafts & Handmade Goods
If not for the beauty, but for the sentimental value and hard work that goes into them, handicrafts are products that are treasured over ages. So, why not be a carrier of these beautiful emotions?.
When it comes to bringing culture online, one can never forgets ethnic fabrics each with a story of it’s own. If your culture means a lot to you, then add these handloom creations to your marketplace.
Toys & Kids Supplies
Children need special care and special items too. Create a marketplace containing child items that will satisfy parents and children both.
With e-sports being an career choice you might want to consider creating a marketplace for gamers looking for gaming supplies.
Furniture breathe live into an empty house. Try creating a marketplace specialising in furnitures and furnishing items.
One of the earliest form of niche marketplace. If your got a heart for fashion that resonates with each fashion lover then this just might be your cue to get started.
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||Etsy is a marketplace dedicated to handmade goods.||Shein is a marketplace for clothing and fashion items .|
|Revenue Generating Process||Etsy makes money from sellers by charging various fees for selling on its marketplace and fees for some other services.||Shein is marketplaces with multiple suppliers but draws maximum revenue from the sale of it's products.|
|Customer Benefit||Etsy caters to specific customers base. It’s charm is that its connects customers to sellers who share the same passion.||As a brand popular among the youth, Shein gained it's popularity by delivering to cutomers trending items.|
|Advertising||Customers are attracted to Etsy due to their investment in influencer markeking, digital marketing and traditional advertising as business stratergies.||When it comes to making profit apart from it's investment in digital marketing Shein relies mostly on influencer marketking stratergy.|
|Synopsis||Due to in small range Esty knows their audiences in-n-out. Having a good understanding to customer demands is the key to its current success||The fashion industry keeps changing but manking popular item available to the masses at an afforable rate is the genius stratergy that worked for them.|
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