A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.
Different types of marketplaces
Based on the kind of thing sold on the marketplace we can break them down into:
- Service.
- Products.
Based on the nature of the people or companies interacting though the marketplace we can break them down into:
- B2B.
- B2C.
- C2C.
Based on the number of players interacting and transacting on the platform, marketplaces can be broken down into:
- Two-sided.
- Three-sided.
- Multi-sided.
Marketplaces case studies
Etsy’s product marketplace
Uber Eats three-sided marketplace
LinkedIn two-sided marketplace
Key Highlights
- Definition of a Marketplace: A marketplace is a platform where buyers and sellers interact and conduct transactions. The platform generates revenue through fees charged to the parties involved in the transactions.
- Marketplace Classification: Marketplaces can be classified based on various factors, such as the type of goods (services or products) being sold, the nature of the participants (B2B, B2C, C2C), and the number of players involved (two-sided, three-sided, multi-sided).
- Types of Marketplaces:
- Service and Product: Marketplaces can offer services or physical products for sale.
- Participant Nature: Marketplaces can connect businesses to businesses (B2B), businesses to consumers (B2C), or consumers to consumers (C2C).
- Number of Players: Marketplaces can involve two core players, three core players, or multiple players.
- Marketplace Case Studies:
- Etsy: Etsy is a two-sided marketplace focused on unique and creative goods. It earns revenue through transaction fees from items sold on the platform. Key partners include sellers providing listings and various marketing channels for organic reach.
- Uber Eats: Uber Eats is a three-sided marketplace connecting drivers, restaurant owners, and customers. Restaurants pay commission, customers pay delivery charges, and drivers earn through reliable deliveries.
- LinkedIn: LinkedIn serves as a two-sided marketplace where businesses connect with brands. It’s a valuable marketing tool for both B2B and B2C interactions, offering various marketing tools for different business sizes.
- Benefits and Impact: Marketplaces enable efficient interactions between buyers and sellers, providing a convenient platform for transactions. They contribute to the growth of various businesses and industries by connecting them to a wider audience and facilitating trade.
Other marketplace business model case studies
Amazon Business Model
Doordash Business Model
Etsy Business Model
Uber Business Model
Uber Eats Business Model
Read More: Platform Business Models, Network Effects, Etsy Business Model, Uber Eats Business Model, LinkedIn Business Model, Virtuous Cycle.
Connected Business Model Types And Frameworks
Attention Merchant Business Model
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