An online marketplace essentially enables vendors to put forth their services and
products in front of the targeted patrons.
They are a multi-vendor platform that allows the customers to make their purchases while
exploring a dynamic range of choices,
while facilitating superior growth value for the vendors. The network effect prevalent
in this system is one of the key factors
that make online marketplaces so popular. This simply means that increasing buyers’
leads to greater sellers which in turn
magnetizes more buyers, this cycle keeps continuing. Once this system perfectly sets in,
it can be extremely lucrative.
Having online marketplaces involves lower setup expenses and lesser financial
risks as sellers have to invest in their own stocks,
not you. In the long run, you can enjoy higher profit margins with its assistance.