An online marketplace is a virtual space that is made to collect and accommodate numerous vendors and customers, on which they can either interact as equals or develop an entrepreneur-client hierarchy. Four different kinds of marketplaces are based on their business operation method or models. Scroll through to learn more about the kinds of e-marketplaces that exist today.
Business to Business
In a B2B marketplace, one business sells to another one on beneficial terms. A third party owns and operates a B2B marketplace platform, which is open to both the sellers and buyers from a particular segment. It can take days to months for the sales process to get completed.
Depending on the online platform content, B2B online marketplaces can be of multiple types.
This refers to an online platform on which businesses sell their offerings specific to a sector, trade, profession or a group of customers having specialized requirements. Selling or purchasing through a vertical marketplace contributes to increasing the operational efficiency while reducing the supply chain, inventory cost and inventory procurement time.
On the other hand, a horizontal marketplace connects sellers and buyers across different segments or areas. It can be used to buy indirect products, like office stationery or equipment.
Business to Consumer
The B2C model allows business people and their customer base to interact with one another. The benefit of this platform is that one finds everything they require and various commercial offers all in one site. The duration of the sales process can be days to weeks.
Consumer to Consumer
C2C online marketplace models are alternatively known as person-to-person or peer-to-peer, which suggests that there are no businesses here and every participant is equal. They are around the same age, have similar income and interests, as well as visit the platform for sharing something with other people. This helps customers to reduce their administrative expenses and receive the best prices from suppliers. The latter can also use this buyer-oriented marketplace for advertising their offering to the group of relevant customers.
Through this one, sales can take place in just a few hours or days.
Consumer to Business
In addition to the above-mentioned ones, there are C2B marketplace models too. This is the kind where customers bring value to that business involved in it. An example of this is a freelance exchange space where private experts provide their services to a wide range of companies.