e-cOMMERCE mARKETPLACE

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.

bUSINESS IMPLICATIONS

  • 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

relevant sub-sectors

Consumer Electronics

Department Stores

Fashion & Sporting Goods

Furniture & Household

Supermarket & Convenience Stores

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