22.09.21

What are the different types of marketplaces?

Earlier, we figured out what a marketplace platform is. Now let's look at the types of sites. For what purposes does each model serve, and whom is it focused on?
E-Commerce
It is a general concept that provides platforms with the possibility to pay for goods via the Internet. It mainly applies to stores operating through a global network.
Usually, two factors are considered to classify any e-commerce platform:
  1. What do they sell?
  2. Whom do they sell?
Based on the responses, the marketplace is assigned a specific online trading model. Let's consider them in more detail below.

Peer-To-Peer
More often, the peer-to-peer concept is used in the IT field. For commerce, the P2P model is the ability to minimize trading errors. Generally, it is a standard online store where the consumer interacts with the supplier directly. The fundamental difference from the classic marketplace is isolation. Instead of hundreds of merchants, only one is present here. Customer flow is ensured through custom and native advertising. Logistics is standard for sites of this type, but there are exceptions like cooperation with local carriers and logistics companies.
B2C
Business to Consumer is the most common e-commerce model. It is the best answer to "what is a multivendor marketplace platform?" because it implies hundreds of promising suppliers simultaneously. A classic example of such a platform is Aliexpress. Brands and stores gather on B2C platforms to create healthy competition. With the help of discounts and loyalty systems, they compete for each customer. As a result, buyers have a wide range of goods and services in various price/quality ratios. Usually, the platform creators provide a convenient UI for work and partnerships with logistics companies, which positively affects the cost of delivering goods.
B2B
Business to Business. The model is used for trade between companies. The subjects of trade relations are wholesale goods and services. It includes giants like the Alibaba Group. Their field of activity allows them to provide quality products in local markets in large volumes. The focus on working with serious companies cuts out small wholesalers and consumers. B2B marketplaces most often have developed logistics and partnerships with large companies.
C2C
Consumer to Consumer. eBay can be confidently called the brightest representative of this kind. Although business representatives have migrated there, it initially was a platform for trade between ordinary users. Like an auction with bids. Now there are many similar C2C sites where used and new goods are sold. The main advantage is that anyone can put up their goods and services for sale. It is also a minus because there are too many unscrupulous sellers here. Most often, they work at local sites, but sometimes they also go to international ones.
Crowdfunding
This term stands for co-financing. This model is popular for startups, culture, and technology. The main tool for achieving goals here is consumer money. For example, the SeedInvest website collects money for the implementation of IT projects. Investments are paid off from the finished product of the developers, and the distributors receive income from the release of products. There is always a high risk for startup founders and investors at these sites because money is not returned if the project fails.

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