What you need to know before starting a marketplace

The idea of investing in a marketplace and being part of a market that is booming is breathtaking. However, life is not a bed of roses, launching a marketplace is no guarantee of success, since any business model requires a lot of planning.

With that in mind, we have prepared a material for you to discover what you need to know before opening your online market. Check out:

Why marketplaces are a good business

One of the main reasons for marketplaces work so well, is the fact that the administrator doesn't need to have inventory to manage it. Uber, for example, does not have its own cars on the street, but is considered the largest transport company in the world. So, launching a marketplace becomes an amazing idea, as you can build a great business without spending a lot of resources and taking big risks.

Ok, it seems that the scenario to invest in opening a marketplace is great, but is being part of this success easy? We'll deal with that in the next topic:

There's a lot of work before success

As expected, an idea is not enough to make a profit in the online market, it takes a lot of planning and work. In this topic, we won't address technical issues, but we've selected some thoughts you need to know before launching your platform, as they will directly influence the way you'll run your business:

How to develop the website?

With the structured business model, it's time to build your market platform. So, you need to think about some questions: Are you going to write the codes yourself? Or will you need to invest resources to hire a team of developers? Or, are you thinking about using a ready-made marketplace software? And if so, which would you choose?

What is your expertise in the area?

Do you have familiarity with the niche you intend to invest in? Do you have previous experiences? Can you count on possible investors? You know people who that can help you? Already have a certain audience? Choosing a market you already know can get you ahead of your competitors.

How will you win sellers?

A key question, knowing how you're going to win sellers on your platform is one of the first questions you should ask yourself. Why should sellers choose their marketplace to advertise? What is the strategy you are going to take to do the marketing? Have you thought about what advantages you will offer?

How do you reach buyers?

Imagine you've arrived there: you have a great platform for your marketplace and several sellers with amazing products. Something is still missing, right? Buyers. So, before you even create your MVP, it's important to figure out how you're going to reach buyers. Do you already have a certain audience? Are you planning to do online marketing? What strategies are you going to take? Remember that an online mall is worthless if it has no visitors.

It's ideal to create an MVP to test your idea

We've already covered the concept of Lean Startup and MVP in some previous posts, but it's worth remembering: Creating a MVP (Minimum Viable Product) to test your idea before risking too many resources is paramount. So, the initial phase of the project should be focused on developing and launching an MVP.

Don't forget: the more people give you feedback, the better you will develop your project and leave your ideal product for end consumers. If you want to know how to build and launch an MVP, click here. 

Having an engaged community is crucial.

Finally, we want to emphasize the importance of keeping people on your side. For any project to succeed, people need to believe in it. Therefore, engage with your community, keep in touch with potential customers and publicize your initiative. The more involved users are, the more successful you will be.

Did you like to know some thoughts you need to do before opening your marketplace? So follow us on social media and follow much more content!

Want to build an MVP for your business idea? Count on us, send a message to easy@easycomtec.com and schedule a consultation.