Online Shopping Websites : Changing Face of Online Marketplace
Early eras of business
The world has been involved in the business since time immemorial. In older times, the form of business or commercial activity was entirely different from today. In ancient times, goods and services were exchanged amongst the folks for the desired goods and services in return which was called a Barter system. This system had been practiced for centuries until the formal currency was discovered.
History of currency
The currency was circulated for commercial activity in the form of metal coins. Gradually, the monetary system evolved from coins to paper money which still has the relevance in a world economy in the present day. However, in the 21st century of the Anno Domini era, the world is planning to lessen the use of paper money and go cashless using an online platform. Half of the world has already implemented ''go cashless'' term with the evolution of internet era.
Evolution of business
A business is as old as the world's civilization. A business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. With changing times, every aspect of the world evolved into sophisticated form, business too. From backyard scullery to commercial concrete shops to virtual array (online marketplace), goods and commercial exchanging kept changing its marketplaces.
An online marketplace also called an electronic marketplace is an e-commerce web portal where the multiple vendors, manufacturers or service providers sell their goods or products and services directly to the customers. An online marketplace platform or online shopping website is an easy medium for the vendors as well as for customers as the online marketplace solution connects the manufacturers and service providers to a single platform i.e. e-commerce website. The online marketplace operator takes charge of monetary mechanism and processes all the transactions in order to build a smooth bridge between the vendor and the customer to make their selling and buying easier. Consumer transactions are processed by the online marketplace operator and then delivered and fulfilled by the participating retailers or wholesalers (often called drop shipping). Other capabilities include auctioning (forward or reverse), catalogs, ordering, wanted advertisement, trading exchange functionality and capabilities like RFQ(A Request for Quotation), RFI(Request for Information) or RFP(Request for Proposal). The marketplace websites allow users to register and sell and buy a single item for a large number of items.
Why is an online marketplace the best marketplace for the vendors and customers?
We are living in a robust internet world where a modern life cannot be imagined without computers and internet connection. A survey tells that more than 51% of the world population has access to the internet. It is estimated that around 42% of global internet users like to shop online and on their mobile devices. It is expected that the number of digital buyers will grow rigorously in coming years. In the upcoming years, e-commerce is expected to boom in the international online marketplace.
Where to sell online?
There are the numbers of established e-commerce marketplaces and many new online marketplaces or online shopping websites are thriving every year where the sellers can display their goods and sell their product directly to the consumer. Suppliers and vendors, who are looking for a platform where they can expand their sales channels; an online marketplace is the best platform to grow their sales scale and reach more customers effortlessly, hence, the sellers can find a suitable online marketplace to showcase their products and make a successful online business.
How the online marketplace fascinates the consumers to buy online and make their shopping journey easy and comfortable?
Those days have gone when people had enough time to travel far and wide with family members and friends to buy the daily necessities of food and clothes, special wedding shopping and other stuff and shared baggage. Present era does not provide that privilege to the modern population as they face a neck breaking competition in every walk of their life and lack time in life for leisure luxury stuff that our ancestors liberally enjoyed. The present global population cannot afford to do time-consuming tasks as balancing a personal and professional life is itself a huge task for today’s generation that keeps them busy day and night. Probably, this could have given an idea to a business aspirant to invent an online business place. This could be the reason behind an online marketplace boom in the internet world. The first internet-based system for e-commerce was introduced in the year 1989 in the USA. Later several e-business experts expanded their online marketplace idea from their home country to the global platform. There are many Amazon alternatives that make your shopping journey not only interesting and comfortable but also save your pocket providing your desired items at reasonable prices and saving your transportation cost. On an online marketplace, everything from a needle to huge furniture’s is available at just a click away. An online marketplace does not work in a limited radius, an online marketplace reaches to international shoppers, and the digital shoppers buy goods not just from their own country but from across the globe. An e-commerce site or online shopping website is automatically an international online marketplace where sellers can sell their products worldwide and the consumer can buy the stuff from any country around the globe.
There numerous largest online marketplaces that promise to enlist your range of products and puts on the sale on their e-business portal providing sellers the required support like branding, promotion, advertising, and logistic backup etc.
How is an online marketplace the best place to sell your products than traditional marketplace?
Traditional sales process have always been little clumsy in producing best sale results, despite huge efforts. Hence, an online marketplace is the best place to put your products on display and turn them into profitable trade and get the best sales results by saving huge cost, time and effort. Moreover, present-day consumers find an easy way possible to buy products or services at reasonable prices. Another adverse aspect that a traditional business or sales have is, customers are often deprived of actual benefit and right usage of the product as in traditional business the detail and usage of the product are abstract. But, an online marketplace systemically works on the guidelines to provide product details using coherent adjectives and description to offer to benefit the customers as well as traders. The beauty of an online marketplace platform is that it constructs efficiency in an otherwise inefficient market. Where it completely was not convenient for consumers and vendors to seek out one another before, a digital middleman connects them along. An online marketplace or online shopping website secure concrete profits for vendors convincing and satisfying a consumer's need.
How online marketplace targets a niche market and turns them into a profitable online business?
Choosing a right marketplace for the right product and selling them to the right customer is the most difficult thing to do. However, an online marketplace makes this task easy for the sellers. A niche market is the subset of the market on which a specific product is focused. There are the most popular marketplaces that bring these niche marketplaces on the global platform.
Traditional retailers have a limited reach to the consumer while through an e-commerce marketplace a vendor can expand the visibility of his product. Niche marketing helps the seller get a leg up on the competition by setting the vendor apart from the crowd, but it also brings a valuable set of benefits that might make it the right fit for growing business.
How really the e-commerce benefits the user and seller?
So far, almost the entire article tells you about how a user and a vendor can benefit from an online marketplace. Let’s simplify it further. Online marketplace medium is an open platform for everyone. If you are the manufacturer, a vendor who is seeking for a marketplace or a customer wanting to buy products effortlessly then this model is designed just for you.
How an online marketplace generates revenues playing a digital middleman connecting vendor and consumer?
An online marketplace model out and out works on commission. In the multi-vendor online marketplace, commission is based on fixed or percentage of the transaction value to be cut from the amount paid by the buyer to seller.
How users can benefit:
- Users enter the online marketplace
- Users register there
- Users browse for their desired product.
- Users buy what they need via online payment system (already integrated) or pay cash on delivery for the product.
How sellers can benefit:
- Sellers enter the marketplace and register themselves there for business correspondence.
- Sellers create the listings for their goods or services.
- Marketplace operators support the sellers branding, promoting, advertising, and providing logistic backup.
Online marketplace platform has a feature to come up with reports of commission and to cut the commission on each transaction. In the online marketplace involving products or goods from multiple vendors, the revenue may be deducted from the listing of products or services on the platform. The listing revenue model is processed by leading e-commerce marketplace operators. The vendors need to pay the fees to list their providing on the net marketplace.
The online marketplace is the need of the hour
From the barter system to the cashless online marketplace; a business has seen multi-phases of changes through the years. However, an online marketplace is the need of the hour of modern age and the digital era will connect the global citizens to a single platform i.e. online marketplace.