What Are Online Marketplaces And What Is Their Future?

An online marketplace is an e-commerce site that connects sellers with buyers. It’s often known as an E-marketplace and all its transactions are managed by the website owner. Companies use b2b marketplaces to reach customers who want to purchase their products and services.

One example is GeM, which is a top online marketplace where products or services are offered by several sellers for the government agencies and departments. Central government ministries and departments must procure goods and services from them. Some of the benefits of the online marketplace are:

Sit at Home and Shop

Browse through many items at a time and buy what they like, in just a click. From the comfort of one can buy items that are not available in their locality. Searching for an item, seeing the description, adding to cart — all steps happen in no time at all.

Product Display & Personalization

A product listing is what the customer sees when they search for an item. Sellers can add many images, a description, product category, price, shipping fee, and delivery date. So, in just one step one can tell the customer many things about the item. The product listing can also be personalized once it’s created.

Pocket Friendly

E-marketplace helps sellers in cost reduction. To maintain a physical store, one may need to pay costs like rent, repairs, store design, inventory, etc. In many cases, even after investing in services, stock, maintenance, and workforce, sellers don’t receive the desired profits and ROI. An e-marketplace is affordable and requires less investment and is a good opportunity for individual and small scale sellers who want to earn an income but don’t have the required start-up capital.

Easy Promotion

One does not have to spend a lot of money to promote their items. E marketplaces are visual channels — and sellers can show off their product. With the help of Advertising tools, sellers can add videos, infographics, good quality resolution images.

24/7 Availability

An important advantage of the e-marketplace to business is that sellers can provide flexibility to customers, as the product and services are ready 24x7. The result is that the seller can offer his item any place, any time. Also, the conveniences like free shipping (usually on a minimum cart value), express order delivery, deals and discounts, subscription advantages are all a boon for the customers. The reviews of the products go a long way to build trust and increase repeat orders.

Product and Price Comparison

In the E-marketplace, sellers can compare the products using tools or on their own. This gives them a good idea of product alternatives available, the standard rates if a product need is unfulfilled.

Ease of Payment

E marketplaces permit multiple payment modes that include UPI, cash on delivery, the card on delivery, net banking, EMIs on credit or debit card, and pay-later credit facility.

Thus e-marketplaces are the best option for people who want to engage in a flexible business opportunity with relatively low start-up costs.