Digital Marketplace, also known as Online Marketplace, Web-based Marketplace, or Virtual Marketplace is an electronic platform that allows sellers from all over the world to offer their products or services to potential buyers. It operates through a website where customers can browse, compare and purchase a wide range of products.
What is Digital Marketplace?
A digital marketplace refers to an online platform that brings together different vendors of diverse products and services in one place. This makes it possible for consumers to easily access and purchase goods and services without having to leave the comfort of their homes. Some examples include Amazon, Etsy, eBay, Airbnb among others.
How Does Digital Marketplace Work?
A web-based marketplace provides a means for sellers to list their items on the site while charging them some commission per sale made. Customers then browse through different items available on the site via various search criteria such as category, price or seller rating before making purchases securely right there.
Benefits of Using Digital Marketplaces
Digital marketplaces offer several benefits both for businesses and consumers including;
- Expands reach beyond physical locations: With online marketplaces, businesses can expand their customer base globally.
- Cost-effective for small businesses: Small businesses do not have adequate resources like larger enterprises but getting started with selling on these platforms is relatively inexpensive.
- Streamlined selling process: Online marketplaces handle payment processing logistics allowing you to focus solely on fulfilling orders instead of tedious tasks like dealing with sales taxes & shipping labels
- Wide Range Of Products And Services Offered
Popular Examples Of A Digital Market Place
Here are some popular virtual marketplaces:
- Amazon - Offers everything under the sun ranging from books, electronics clothes among other things.
- Etsy – Most popular destination if you're looking for handcrafted gifts or vintage treasures.
- Airbnb – The best option when planning your next vacation; this web-based service offers accommodation rental listings worldwide.
- Upwork – One of the top marketplaces in the freelance industry, allowing businesses to hire skilled talent worldwide for their projects.
- eBay – The oldest online marketplace that allows selling and buying products ranging from antique collectibles to modern-day gadgets.
Digital Marketplace Success Factors
The success of running a digital storefront depends on various factors including;
References
- "Online Marketplaces" - by Dölle, Christian; Lütkehaus, Ludger; Schniedermeier, Annette (2012)
- "Buyer-Side Online Market Making: A Pilot Study Of EBay Motors" - By Dan Kovenock (2005)
- “Selling Your Crafts Online” by Michael Miller(2011)
- “Airbnb: How Three Ordinary Guys Disrupted an Industry, Made Billions . . . and Created Plentyof Controversy ”— by Leigh Gallagher (2017)
5."Digital Commerce Strategy Handbook ” — Cristina de Balanzo, Nenad Pacek,Abeed Janmohamed(2020)
