HOW DOES IT WORK ?
- Business owners operate a digitally-enabled marketplace via an online platform
- The marketplace operator facilitates transactions between brand owners and consumers, by aggregating product or service information from multiple brand owners and processing consumer transactions through the platform
- The marketplace operator may perform order fulfilment, but does not typically possess ownership of inventory
In this model, the market is likely to be comprised of a few large players. There is also a trend for these players to move into omni-channel retailing upon achievement of a reasonable scale.
- Stakeholder management will be critical as marketplace operators manage numerous users (i.e. conflicting needs between buyers and sellers)
- Fostering and reviewing strategic partnerships with suppliers is also a cornerstone to sustainability of the marketplace
- Marketplace operators may need to innovate to find ways to differentiate themselves and compete with other platforms in driving consumer traffic