Subscription Marketplace Checklist
Build with right platform & features
Manage your Vendors
Grow with the right strategy
Launch Your Marketplace
The idea of subscription boxes is nothing new, but with convenience of subscription plans the industry forsubscription boxes has spiked from $57 Million in 2011 to$2.6 billion in 2016.
The sudden surge of covid-19 has shown the global subscription box market to reach a value of$22.7 billion in 2021 and exceed to about$65 billion by 2027. Even without these figures just the benefit of having a steady revenue flow should be enough to get you started. Use this guide to check what you need to start to subscription marketplace.
Around 54% of online shippers subscribe to a subscription box service
Most e-commerce subscribers are likely to be within the age range of 25 to 44 years.
Many popular subscription services charge a relatively low subscription fee of $10 or less
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.
Custom platform is created keeping specific needs of users in mind.
Top Subscription Marketplace Features
Know Your Vendors
Understand the variations available in the marketplace
Kudos to social media skincare and grooming has become really important. Creating beauty box subscriptions may not be a loss
Be it online or offline but newspaper subscriptions are pretty common. Don’t lose out by leaving these sellers out.
Who doesn’t enjoy the convenience having groceries delivered at home? Include local market owners to give customers benefit of subscribed groceries.
Give burgeoning authors and publishers a chance by creating a library where users can rent books on a weekly /monthly/yearly basis
Since coffee people are particular about what coffee they drink, and they generally drink every day, a coffee of the month club can be highly valuable.
Pet subscription boxes
Another industry that relies on repeat purchases is the pet industry. Monthly shipments of pet food, medicine, and toys are common. Try investing a little on these sellers
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||Marketplace for movie subscriptions||Earn their income by selling small subscription boxes of multiple products.|
|Revenue Generating Process||Netflix creates subscription-based packages for viewers to get access to the desired content.||Cratejoy charges its user's service costs (including delivery charges) along with a transaction fee for the platform's usage.|
|Customer Benefit||Apart from producing personal content Netflix partners with various directors and producers to keep the content game up.||Cratejoy offers analytics, customer portals, and dedicated support to users..|
|Advertisement Strategy||Netflix leaves no stones unturned when it comes to advertisement from social media marketing to email marketing to running ads they have done it all||Cratejoy keeps it simple and sticks to only facebook and instagram advertisement.|
|Synopsis||Netflix has amassed a significant part of its audience by selling personalised content available by subscribing to various packages.||Being a part of the market has allowed Cratejoy to create a customer base big enough to attract merchants.|
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