The pandemic gave a strong impetus to developing e-commerce. People of all ages and social groups were forced by the quarantine to remain online shopping.

Companies offering products and services without online sales channels began to rapidly create sites with online stores and look for opportunities to work through mobile marketplaces so as not to lose their target audience. Therefore, marketplace mobile app development is a relevant investment that will create a powerful business.

Shoppers quickly appreciate the benefits of buying goods online:

• selecting products at any time and in a comfortable environment,
• no need to go shopping and stand in queues,
• comparison of offers of different sellers of goods and services, their prices and individual offers,
• convenient ways of payment,
• fast delivery,
• loyalty programs.

How Mobile Marketplaces Work And What To Consider During Marketplace App Development

E-commerce makes it possible to sell, order, and buy from anywhere in the world. It allows one to reach the part of the population that lives far away from the megalopolis and cannot visit shopping centers; it is convenient for homemakers, people with disabilities, and those who prefer to spend time on more important things than going shopping. The delivery organization not only helps to save time and money on travel but also to receive quality products, medicines, and food at home when travelling or on business trips.

Companies are quicker to find business partners and great deals over the Internet. Almost every manufacturer or firm offering products or services opens an online store to stay competitive by giving their customers the opportunity to shop online.

Managers can track customer behaviour and influence them through email newsletters; make personalized offers to those who haven’t visited the site in a while or are in no hurry to pay for items from the cart. Promotion of online stores requires constant effort and a lot of expenses for advertising campaigns and, website development; development of marketing to attract and keep customers.

Wholesale and retail marketplaces are organized on different principles. They can be compared to a virtual marketplace where the products of numerous vendors are presented and customers can stroll through their display cases with pictures and descriptions of offers, and compare prices, delivery terms, and discounts.

Before you start drafting your TOR for Marketplace App Development, think about the direction you want to take your business.

Why Mobile Marketplaces Are More Effective Than Online Stores

On the largest marketplaces, you can buy products from various brands, factories from around the world, clothing, furniture, etc. It’s enough to type in a search for the name of the product, and a second later dozens or hundreds of offers will appear on the screen. This is very convenient and attracts a huge number of customers, who do not need to wander the sites and explore the offers in different online stores.

Unlike online stores, it is easier for novice sellers to make themselves known and succeed on platforms that already have potential customers. Getting started doesn’t involve a large investment of money in advertising and increased traffic.

Because of the ever-increasing number of online stores, it’s becoming increasingly difficult for sellers of generic products to attract customers and stand out among thousands of the same. Even large companies and well-known brands are striving to occupy their niche so as not to miss out on the benefits of their capabilities.

Marketplace App Development: Structure

The typical structure of a mobile marketplace is determined by the basic functions it performs:

• Product catalogue – in it, the buyer sees the names of products and services, and data about vendors are in the product cards.
• Registration for buyers and suppliers.
• The seller’s personal account, where he manages sales and sees the results. Here you can change the prices, and the information in the cards, see the rest and get the analytical data if it is possible.
• Payment from buyers and sellers, calculation of discounts, money transfers, etc.
• Buyer reviews from seller rating and promotion.
• Delivery – the section is created based on whether the seller or the marketplace is responsible for it.
• For a particular customer, the structure is developed after studying its activities, its volume, the target audience, and the choice of monetization.

The project can monetize its services to sellers in different ways and receive:

• commissions from sales,
• membership fees,
• payment for each ad,
• an amount for contacting the customer on demand,
• extra pay for advanced features,
• promotion fees, etc.

The choice depends on the type of activity, the need to control the payment, and to make favorable offers to their customers.

Marketplace App Development: What Is The Benefit?

The business model of the mobile marketplace is particularly popular right now. According to Data Insight, the average growth in online commerce from 2019 to 2024 will be 33.2%. Experts say people are used to taking advantage of online shopping. Why has the mobile marketplace model proven successful?

What Are The Benefits Of The Marketplace Model?

There are two main parties involved in the mobile marketplace: the buyer and the seller. Each has its own advantages. For the buyer, the good thing about the marketplace is that prices are often lower, and the range of goods is greater. The mobile marketplace is also notable for its convenience, which makes marketplace app development especially relevant. The consumer does not need to go to dozens of different sites; everything is in one place.

The marketplace is just as profitable for the seller. First, it has a huge client base. Secondly, expenses (office maintenance, delivery, staff salaries) are cut. The mobile marketplace creates a good image for the company, gives a competitive advantage, and the opportunity to reach the next level.

Is It Worth Creating Your Own?

The sphere of e-commerce attracts entrepreneurs. It really is possible to make money on a marketplace, but it is not limited to creating it. The most difficult thing is to attract users. More or less experienced entrepreneurs cope with this task:

• Those who have experience in the topic of the future marketplace;
• Those who own offline stores and want to scale their business.

Because the creation process itself is, in principle, clear: developing the application, generating traffic, maintaining, and upgrading the site. Only you can’t forget about promotion. Marketplace app development is quite a complicated process. It is better to allocate a budget for these purposes in advance.

Marketplace App Development: Conclusion

Marketplaces allow you to sell your products (services) and attract other small and medium-sized companies that are not direct competitors. They can deliver to other regions, offer a different assortment, etc.

Marketplaces are designed for different market models:

• Business-to-Business (B2B) – wholesale marketplaces where business partners trade and buy.
• Business-to-Customer (B2C) – mainly retail marketplaces where people are the buyers and legal entities are the sellers.
• C2C – individuals sell and buy.

Marketplaces can effectively connect manufacturers, retailers, and consumers. With the globalization of Internet technology and the growth of online shopping, the number of marketplaces will constantly grow and displace traditional online stores from the market.

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