Top 5 Popular Online Marketplace Business Models for ecommerce Business

Millions of businesses thrive on the internet these days, where you buy a gadget or consume paid content e-commerce has made everything doable. There are various e-commerce marketplace business models. Online marketplace business model is most interesting and talked about. There is enormous scope to build a scalable business in electronic commerce market. Business models for the marketplace for services is quite different from the marketplace for the product.

In this blog, we will first understand the marketplace concept and then we will try to understand business models of leading online marketplace players.

What is Marketplace?

An online marketplace is a website where suppliers sell their product or services to buyers. Buyer’s transaction takes place on a site and processed by marketplace operator. Product/ Services usually delivered by the supplier.


Online Marketplace

By building marketplace e-commerce website, you will become marketplace operator and earn commission on the transaction that happens on your site. You will be able to aggregate offers from various vendors and customers can choose which suits their needs.

Successful companies like Uber, Airbnb are the few example of successful services marketplace and Amazon, Alibaba is the few successful examples of Product marketplace.


Launch Your Marketplace and become next E-business Entrepreneur. Contact Us

Marketplace for Services

By gathering services providers under one platform and you will able to offer a vast array of the services. You can provide this services through mobile or website or both. For example, Uber provides taxi aggregating services only through the mobile app. Once of the primary focus as a marketplace owner should be ensuring customers are 100% satisfied by the services they acquire through the marketplace.

Marketplace for Products

By gathering product selling vendors on your platform you will be able to offer a variety of goods on your e-commerce marketplace platform. Index hundreds of products and sort/update them according to market trends and user preference.  One of the primary focus as a marketplace owner should be ensuring shoppers are 100% satisfied by the product which vendor has supplied to them.

Online Shopping Marketplace Business

Etsy Website

Online Shopping is pretty standard nowadays. With increasing in online shoppers demand for Online shopping, the marketplace has grown exponentially.  Online shopping trend has not only benefited to buyers but also small and medium businesses who sell their product through e-commerce marketplace.

Etsy is one such great example of peer to peer marketplace focused only on handmade and vintage items, empowering artists to set up their stores and reach out to millions of potential buyers.

Other popular websites such as like eBay and Amazon offers generic items including electronics, books, gadgets, and much more.

Online Marketplace for On Demand Local Services


Local listing directories and Yellow Pages are things of the past, Online marketplace for local services have tremendous potential for budding entrepreneurs.

Services Professionals jobs like plumbing, gardening, electrician, etc. are just a click away. On Demand, local services have made it easy for people to find the services that they need. Studies show that need to on demand service is growing very fast.

If you are excited about this opportunity you can create a marketplace where service providers can offer their services and users who need it can book it online.

It creates value for service provider and seeker local services discovery portals are future of the on-demand economy.

For Example Angie’s List, a US-based marketplace for local services has more than 3 Million members and reported revenue of $344 Million in 2015. Angie’s list is one of the biggest online marketplaces for local service ranging from home decor to automobile to glass cleaners and other professional services.

Another example of the on-demand mobile marketplace is Moonlighting App. It’s a great resource to hire a local person for the services like hiring a carpenter, technician, translator, babysitter, etc. It secured $1.9 Million second round funding from three investors.

If you plan to start your online marketplace business, then start now! Because NOW is the right time to start it! Alphanso Tech team would be happy to assist you with a free consultation on it.

Launch Your Marketplace and become next E-business Entrepreneur. Contact Us

Online Food Ordering and Delivering Marketplace


Today, everybody wants everything at their fingertips, be it booking cabs, tickets, hotels for food items from restaurants.

With tasty food being a necessity & frequency of re-ordering very high, an online food aggregating marketplace is a very niche opportunity.

Beautiful and easy to use user interface (UI) and User experience (UX), an extensive database of restaurants and excellent delivery service has helped online food aggregating services like food panda to capture significant market share.  Till now, food Panda has received a funding of $318 million and partnered with more than 70,000 restaurants.

Revenue for the marketplace comes from the commission per order and listing fee charge for the restaurant. Other popular online food ordering and delivery marketplaces are Grub hub and  Zomato .

P2P Car Renting Marketplace


Why book a cab when you can rent a car? Yes, you can rent a self-driven car. Peer to peer can rent marketplace is a booming business for connecting car owners with car renters.

Realizing the need of such service, many entrepreneurs have started a business where booking fee for booked trip is a source of revenue. One of such services provider is San Francisco-based Turo a car rental marketplace. Turo has raised $97M from investors and acquired couple of startups. It is currently available in 2100+ cities and 300+ airports throughout the United States.

Alphanso Tech team can help you with a free consultation on  P2P car renting marketplace. Contact us Today.

P2P Home Renting Marketplace

Vacation Rentals  Homes  Apartments   Rooms for Rent   Airbnb

Airbnb is a Popular marketplace for travelers to book accommodation from the local host. Airbnb has revolutionized the P2P home renting marketplace. By providing economy accommodation and breakfast solution, it is the leading player in P2P home renting marketplace.

With online travel industry growing rapidly there is a vast scope of emulation Airbnb business model for entrepreneurs.  Still, only 25-30% of people book hotels online. Room for providing affordable accommodation is huge in sharing economy.

Both host and travelers – by renting out ideal or vacant space and booking homely accommodation benefit from it.

With total funding of $2.39 Billion and valuation close to $25 Billion Airbnb has 60 million plus users and over 600,000 registered hosts.

Launch Your Marketplace and become next E-business Entrepreneur. Contact Us


In thing blog post, we have discussed Top 5 Popular Online Marketplace Business Models for eCommerce Business.We have discussed 

I hope you will get inspired & start your eCommerce Store and see how things unfold for you.

I hope you will find this post very useful regarding Popular Online MarketPlace Business Models for eCommerce.

Let me know any questions if you have in comment regarding it. I will reply ASAP.

Do you need help with Your Startup? Contact us today get a consultation. Alphonso tech is regarded as one of the best Web Application Development Company in India.


Launch Your Marketplace and become next E-business Entrepreneur. Contact Us
Post by Gaurav Kanabar

Gaurav Kanabar is the Director of Alphanso Tech, a globally acknowledged IT consulting company providing the services in the arena of the WordPress Development Services & iPhone App Development Services. With the immense support from the adroit team, Alphanso Tech has been serving a huge client base worldwide.

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