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 eCommerce marketplace business models.

The online marketplace business model is most interesting and talked about. There is enormous scope to build a scalable business in the electronic commerce market. Business models for the marketplace for services are 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?

eCommerce Marketplace Business Idea

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

By building marketplace eCommerce websites, you will become a 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 examples of successful services marketplace, and Amazon, Alibaba is the few successful examples of the Product marketplace.

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Marketplace for Services

By gathering services providers under one platform you will be able to offer a vast array of services. You can provide these services through mobile or website or both. For example, Uber provides taxi aggregating services only through the mobile app. One of the primary focuses 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 eCommerce marketplace platform. Index hundreds of products and sort/update them according to market trends and user preference.  One of the primary focuses as a marketplace owner should be ensuring shoppers are 100% satisfied by the product which the vendor has supplied to them.

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B2C Business Model

In Business to consumer(B2C) model means you are selling the product directly to the consumer. The consumer is the end-user of the product that you are trying to sell. This is a very Ubi quote IOUs business model, and most of the people on the internet preferred this business model.

A successful example of B2C business models is Amazon, eBay, Netflix, etc. Other business models like B2B (Business to Business), B2G( Business to Government) are less common. B2C model is the best for newbie or wannabe entrepreneurs to start with. In B2B and B2G business models, consumer and sales cycle length, and you have to depend on bureaucracy and fewer businesses.

Online Marketplace for On-Demand Local Services

Online Marketplace for On Demand Local Services

Mobile on-demand marketplace to connect people looking to work with people ready to hire. People can work for their personal free time or for their small business. The platform should be the Fastest way to hire for your business or personal life. This platform should instantly connect with the candidate who has the skills that you need.

For the Freelancers and moonlighters, this portal and app should be the place where they can post their services and availability. They receive real-time alerts on new job posts and can be found by others who are looking for freelancers. This is a unique business model and can make you tons of money if you properly plan and execute this business model.

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Dropshipping is a good place for the people who are just starting out in the eCommerce space. Instead of spending too much money upfront on product acquisition. Supply chain management, delivery, etc. you create sales funnel that your dropship partner sends the product directly to the buyer. The margin is less, but you get a start and experience of eCommerce business. This is great to start your eCommerce business without being handled at the backend operation.

Here is a quick drop shipping example. Let’s pretend I open an eCommerce store to sell shoes. I will tie-up with drop shipping service providers like Doba, Dropship Direct, Sunrise Wholesale Merchant, etc. These sites will provide me with the inventory of the shoes, and I will list them on my website. When a website visitor buys from my website, I will get a commission on the sales and backend operation that will be managed by these sites.

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Software As a Services (SaaS)

Image result for SaaS

Image Source: Georgia Tech

Saas products are getting a lot of traction nowadays. SaaS services can be quite lucrative if you pick up a business idea that is unique and differentiable.  Some of the SaaS companies’ examples are Zoho, Ahrefs, Intercom, etc. SaaS products have recurring billing features, which make sure that you earn revenue from the existing customers monthly.

Each customer has a high LV (Lifetime Value) that allows SaaS companies to focus on new customer acquisition while delivering superior customer services to the existing one. SaaS products allow small businesses and entrepreneurs to have robust IT Infrastructure without much cost, which otherwise is much higher if you develop their own software.

eCommerce Mobile Apps

eCommerce Mobile Apps

Mobile Apps are big business. The latest app Pokemon Go has become a sensational hit among teenagers and adults. There are more active users on Pokemon Go than on Twitter. These are a big number in a short period of time.

The biggest thing with the mobile app that you can do is to make it as addictive as possible so that people can use it. The mobile app marketplace exists in many niches like a fitness app, user for x, dating services, health consultation, etc.

If you need more help with the Mobile App Business Model, Get in Touch with us.

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Which Model is Right for You?

Each of the business models is unique in its own way. These business models can give you a seven-figure online career.

The best advice that I can give you just goes out there and try the model which works for you. You have to get your jersey dirty, play the game, and experiment. You might get a few challenges in the starting, but those lessons will help you in moving forward.

The eCommerce business has something for everyone. You can, of course, expand your portfolio of income streams, check out various clone products like Eventbrite clone, SoundCloud clone, LinkedIn clone to get started quickly with the business model.


In a blog post, we have discussed the 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 if you have any comments regarding it. I will reply ASAP.

Do you need help with Your Startup? Contact us today and get a consultation. Alphonso tech is regarded as one of the best eCommerce Website Development Company.

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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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