You Wanted to Know About the Marketplace Business Model

 You Wanted to Know About the Marketplace Business Model

A marketplace business model is designed to meet the e-commerce website or application software. In the e-commerce marketplace business model, we organize the products and services of different companies or sellers, and also, they used to sell them on their websites.

The platform connects the merchant and customer at the same point.

The online marketplace business model also charges the commission as the provide sellers to sell from our website. Marketplace Business Model examples are Amazon, Flipkart, Uber, etc.

Marketplace Business Model Workings

If we enter into e-commerce market place business model workings there are pretty interesting working flows to be known.

Let me tell you about the workings. It applies to both products and services as well. We can take Flipkart as a product-based marketplace business model example. And OLA as a service-based marketplace business model example.

Let us assume A - Flipkart, B - Nike, C - Customer.

A is the creator of the marketplace business model or an Online Marketplace Business Model. They have created a platform for the merchant to sell the products to the customers.

B are the sellers who have the products to sell from the platform to reach the sell at high levels.

C is the people who visit the website and searches for the product and last make a purchase and get satisfied

Here you may think that it is very usual but the technical fact which we need to know is Flipkart plays a tricky role that is they do not need any products to put on the website to sell. Instead, they plan to have mixed merchants to sell the products on the websites.

Now we can get into service-based examples. Let us assume A - OLA, B - Taxi drivers, C - Customers.

A is the author of the website who develops the ideas. They are the platform to connect the pilots and customers.

B is the people who have the product and they may have less business. So, get rid of this they join the hand with A and do the service by some terms and conditions.

C is the people who get profitable by both A and B and enjoys the service with satisfaction as a service.

These are the business model which works well and reached the pinnacle. There are Software as a service model in b2b and b2c as well. Just roll out to know.

Leading Marketplace Software’s

Many leading marketplace businesses have reached heights and became examples of this business model. Here we have other leading marketplace businesses in Saas products as well for the B2B Marketplace Business Model.

Here let us have a look at the top 3 Saas. They are

* Magneto with a multi-vendor marketplace

* Smartstorez with a multi-vendor marketplace

* Shopify with multi-vendor


Magneto is one of the most popular open-source platforms where many retailers and brands have started with it on their website platform. Magneto provides various features that we have to look after. Also, they provide with the multi-vendor marketplace as well.


* It is very easy to create an e-commerce store and the benefit is we can change the store into a marketplace.

* It is a scalable and distinctive platform that could enhance as per our needs to do changes on the website.

* There are many free-plugins where you can add as per your needs.


* To use this software, we should have some basic technical knowledge to create the websites.

* They do not have customer support for the free plugins.


Customize the design and layout of your Multi-store E-commerce Platform along with other things to match your business needs. Smartstorez is Multi-vendor marketplaces are large scale e-commerce stores where unlimited vendors can sell their products and services.


* SmartStorez offers Building Online Marketplace App with multiple vendors and sellers' aggregation

* With SmartStorez, you can instantly create an online marketplace.

* Fully custom and scalable Multi-vendor e-commerce software to create marketplace websites/apps like Amazon, eBay, and Etsy.


Shopify is an internationally noted e-commerce software for building an online store. Shopify also offers many features and published APIs for you to customize your desired interface. They are providing a drag and drop builder to design the front end of the website quickly and easily and many themes and templates.


* The Multi-Vendor marketplace extension allows you to add unlimited vendors.

* Shopify is user-friendly and provides drag and drop builder to design easily as per our wish.

* It is a multi-location compatible and partner-friendly.


* There will be monthly payment and should pay for every little plugin.

* They have many plugins but the optimization is less and it is not user friendly in the content management system.

Perception to be Focused on the Marketplace Business Model.


If we come to the marketplace business model the brand plays a huge role. You may think for every product the brand matters. Yes, exactly it is but the main thing on the E-commerce Site is Faithful.

If the faith dawdles then the sale or the brand value surely gets down and it breaks the trust level of the customers or vendors or whoever collaborates with us.

The marketplace has its own brand and it fulfills its services or sells its products under their brand.

So branding is very much important when it comes to the marketplace business model.


Quality also plays an equal role. Whether the b2b marketplace business model or b2c marketplace business model the quality makes them come back.

The marketplace business model produces different vendors serving or selling to different customers. So, the quality differs from multiple suppliers. Anyways the quality is good the more conversion happens.

Hence the Brand and Quality play a vital role in the marketplace business model.

Monetization pick in online marketplace business model

If there is no profit in doing or providing values to the users it's waste of time. Let us watch how the monetization happens through popular methods and we will see how the process works.

They are as follows

  1. Commission
  2. Membership or Subscription fee
  3. Listing fee
  4. Ads
1. Commission

The first part is the commission. The product you sell or it is referred to or any transaction happens you will get a commission according to the business model. In this, the providers will not be charged it is cool right! Commissions are the best idea to monetize in the marketplace. Most transactions they do you get more commission and you grow to the pinnacle.

2. Subscription fee

In 2020 subscription is booming in all the online industries. At first, they make money by selling the products. But in this era, the business model is well planned in subscription or membership model. Not only in a specific location it has gone global.

They subscribe to the program and can explore or use it till the end of the subscription date. If they need to continue the service, they can repeat the process.

In the subscription model, we can give the user free signup and make a good deal and provide values to the customers.

For example, we have features like standard, Premium, and Enterprise. As the new user enters, we can make the best deal as a premium package to the price of standard. So, there are more possibilities for conversion as well. So, we make the customer experience delight.

3. Listing Fee

In listing what we do is we list our products in the given platform. For each product, you list on the website or their platform you pay a charge as per the business model.

In some cases, the charges differ because of the product. It is charged based on your business. The more you add listings you can have good revenue. Listing is one of the monetizing methods which is the simplest way of attainable.

4. Ads

Ads are one of the most important sectors where we monetize our business. It shows the visibility of our product to result in top of all others. If we are launching a new product or any service, we should make it visible to know more about the products to the customer.

At the start, the product reach will be less. So, they use to run ads to get better reach and to rank in search results as well. There are different ways to run ads. They run ads according to their business.

By running ads, the visibility is very high and the revenue is also been generated.

When it comes to the Multivendor ecommerce software there is various business going on the internet. If we start a business, we should know the competition and scope of the business.

There are many techniques to scale the business if you are the one planning to kick start the e-commerce marketplace business model then just scroll.

Are you in search of building the astonishing website with a profitable business model? Then why are you waiting just click here and experience a free demo with SmartStorez.