A key differentiator – either in the offering or the distribution
mechanism, to stand out and compete with the Amazons and Ubers of the
world.
The platform should be easy enough for sellers to quickly set up and
start selling, and powerful enough to provide the capacity to carry out
multiple transactions at scale.
Top 5 Most Valuable Companies
THEN
and
NOW
Digital marketplace companies account for half of
world’s top 10
most valuable companies in 2022.
Four out of the five
top companies are
digital marketplace platforms
Digital marketplaces place the responsibility of inventories,
logistics, product pictures and descriptions, and pricing to the
market
seller instead of the owner.
It also enables small companies – such as the once start-up online
bookseller Amazon – to extend their reach and potential market almost
overnight, without big upfront costs.
75% of business executives think digital marketplaces are successful
because of the convenience to customers.
In 2021, online sales on B2B marketplaces increased 17.8% to $1.63
trillion. The reach of B2B marketplace is 2× that of B2C.
The Digital Marketplace Models
Tenets of a
Digital Marketplace
Ease of doing business, frictionless interactions and transactions.
Economies of scale where a business gains cost advantages due to the
scale of operations.
The E-commerce Model
Company A offers its products and services to customers online.
Customer views and selects based on their need.
Customer checks out using their desired automated payment mechanism.
Marketplace 1.0 Model
Model 1.0 allows bundling of products and services with that of your
partners.
Thanks to the ability to bundle your products and services, you as a
provider can expand your portfolio and invite more customers to your
platform.
Customers can compare exclusive offers and finally complete the deal
using any automated payment mechanism.
Marketplace 1.0 can be a B2C or a B2B
Marketplace 1.0 can also be a B2B2X model
Example of
Marketplace 1.0 B2B2X Model
A mobile service provider features a health monitoring app on their
marketplace platform. The app is owned by a healthcare company.
Marketplace 2.0 Model
Aka "marketplace-as-a-service" model where you "digitally enable" your
partners by giving them a marketplace of their own. You configure your
core products in an as-a-service model, by default, on the
marketplaces you sell.
In addition to the above two marketplace features, your partners enjoy
greater visibility.
Lastly, your partners gain all the necessary tools to build their
marketplace and expand their network of customers.
Example of Marketplace 2.0 Model
A transport provider (like redbus) decides to offer an instance of its
digital marketplace, as-a-service, to its insurance partner and by
default bundles its services on the marketplace of the insurance
company.
Key Features of Marketplace 2.0
Variety Built-in
The 2.0 model supports B2B, B2C, and B2B2X models and allows for
tailored workflows.
Personal Touch
Keep things on-brand with your
personalized logo, theme and
custom domain.
On-the-go management
Manage, monitor and customize your
marketplace whenever and
wherever you want.
