E-Commerce Marketplace Segmentation, Business Models & Targeting
INTRODUCTION
The Compact Timeline Of The Rise Of E-Commerce
Source: Yo!Kart Marketplace Guide
E-Commerce Revenue Statistics
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Segmentation Of The E-Commerce Industry
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Online Marketplaces For Products Online product marketplaces involve the selling, buying and renting of products by paying money. These products can be either be delivered to the buyer or picked by the buyer from a mutually agreed location.
These involve three major transactions: ● Retail new products ● Resale old products ● Rental products for a limited time use
Source: Yo!Kart Marketplace Guide
Online Marketplaces For Services They allow providers to sell their services online: ● Online delivery of services- these include B2B and B2C programs or software services as well as services that can be remotely delivered by specialists and freelancers. ● Physical delivery of services- aggregate providers of physical services such as food services, beauty, wellness, booking platforms, maintenance, and household service platforms. ● Direct booking of services on the website such as hotels, air tickets. Like Make My Trip.
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Broader Segmentation Of Marketplaces: Business Models ● C2C (customer to customer) Example: Ebay, Taobao
● B2B (business to business) Example: Alibaba, walmart
● B2C (business to consumer) Example: Amazon, Flipkart
● B2B2C (Business to business to customer) Example: Coca-Cola sells its products via an extensive distributor network to many eating joints, but Coca-Cola also markets their products directly to consumers.
Source: Yo!Kart Marketplace Guide
Dissecting The Modern E-Commerce Marketplace Horizontal eCommerce: An eCommerce Marketplace sells products from a large number of categories. A horizontal marketplace targets all types of sellers and buyers. This is the traditional type of eCommerce and presents itself as a one-stop-shop for all the needs of the customers. Vertical eCommerce: Vertical eCommerce are specialist ecommerce. It is very different from what traditional eCommerce understands and is also attributed as the category killer. These eCommerce websites showcase only one product segment of their platform. Since they focus on one or just a few product categories, they can engineer the experience in a way to influence the customer. Source: Yo!Kart Marketplace Guide
Finding The Right Revenue Model For Your Marketplace In general, most marketplaces take a commission from their sellers – either through listing fees, lead generation fees, or transaction fees
The most common monetization models: ● Transaction fees ● Listing fees / Advertisement ● End-user / buyer subscriptions ● Selling own products
Source: Yo!Kart Marketplace Guide
Initial Research To Start A Multi-vendor E-Commerce Marketplace The first step before building an online marketplace is to know who the prospect is. You need to know what market segments and sub-segments address. Targeting or segmenting the people will mean that you are building your marketplace for the right audience.
First figure out the need for your product and what problems it can solve. Begin with answering these questions for finding the right mix of audiences: ●
Features of your business, products or services?
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Benefits of these features
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Benefits for the user
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Competition
Source: Yo!Kart Marketplace Guide
Just after this let’s fill in the gap where you can make the biggest difference. You need to target your audience as much as possible to maximize your
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Build Customer Profiles And Market Segments Creating customer profiles with similar characteristics will help in fine-tuning your message from top to bottom.
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Approaching Vendors And Merchants For Marketplace
There are two approaches to bring in vendors: â—? Business Approach Reaching Industry Vendors | Designate the profit via Email | Calling | Meeting
â—? Individual Approach Social Campaign | Google Ads | Video | Blog
Source: Yo!Kart Marketplace Guide
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