Marketplace Business Models

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

Etsy is a two-sided marketplace for unique and creative goods. As a marketplace, it makes money via transaction fees on the items sold on the platform. Etsy’s key partner is comprised of sellers providing unique listings, and a wide organic reach across several marketing channels.

Uber Eats three-sided marketplace

Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay the small delivery charges, and at times, cancellation fee; Drivers earn through making reliable deliveries on time.

LinkedIn two-sided marketplace

LinkedIn for Business is used on a very large scale, around 30 million+ brands and businesses are using it. LinkedIn marketing tools available for each business size and sort, from small to large and B2B to B2C. LinkedIn is the most effective marketing tool not only for salespeople but also for brands and to build a strong corporate brand.

Read More: Platform Business Models, Network Effects, Etsy Business Model, Uber Eats Business Model, LinkedIn Business Model, Virtuous Cycle.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"