What Is a Marketplace?
In Turkey, the consumer-to-consumer marketplace model is often described one way, but in practice it usually works as many businesses selling to consumers. That loose usage exists worldwide as well. In Turkey and globally, companies like Amazon, N11, and eBay operate on a marketplace model.
Parties in the Marketplace Sales Model
This model involves the following parties:
- Marketplace owner: Runs the online sales platform, onboards suppliers, manages supplier relationships, handles visual and technical site work, keeps the site attractive for shoppers, and drives advertising and other marketing.
- Sellers / suppliers: List products on the marketplace, keep prices and stock accurate, answer buyer questions on time, and ship orders promptly so products reach buyers as expected.
- Customers: People who shop on the marketplace. They can be grouped as loyal customers and new customers. A new customer’s first purchase is critical: they should enjoy the experience on site and find the product at a competitive price. The supplier must then ship quickly and correctly. When these steps work, a new customer can become a loyal one. Loyal customers respond to tailored campaigns and discounts and keep coming back. Your most profitable customers are usually existing loyal buyers—they arrive without ad spend and regularly meet their needs through your marketplace.
- Payment providers: They handle commission calculations by category, payouts to sellers and the site owner, and fund distribution. Our team implements the software needed for calculations and payouts. You can review Softomi advanced marketplace e-commerce solutions on our site.
- Carriers: Another side of the marketplace is logistics. Either the site owner or individual sellers can contract carriers. If a seller ships using the owner’s carrier deal, they pay the site owner. Carrier rates negotiated by the owner are usually far better than what sellers arrange on their own.
Running a full marketplace e-commerce platform requires coordinating all of these parties well and optimizing sales and margin. Taking the first steps correctly and on time is essential to reach meaningful volume.
For more on Softomi marketplace e-commerce software, contact our consultants.