Increased in connectivity had spread the smartphones over the past decade that have completely transformed Indian commerce.
As much more Indians are getting access to those online services, they are becoming familiar with buying products online – from tickets and books to smartphone, electronics, television and increasingly grocery and daily goods.
This results in huge opportunity for entrepreneurs to grow in commercial market places in India and smartly generate revenue out of it.
Over time, the ruling business model of the e-commerce founders had been settled on the marketplace model.
While inventory driven e-commerce may often grapple with problems with warehousing or product sourcing, marketplaces wear balance less initial constraints to affect.
The distinct nature of marketplaces is such there are push-and-pull factors between buyers and sellers that cause virtuous cycles – the buyers and sellers on the platform keep providing value to every other thereby bringing scale to the venture.
Before understanding the well defined nature of commercial marketplace, it will be useful to highlight some of the attributes that business sectors must show before they will be utilized by marketplace models.
After all, not all offline services are often viably brought onto a marketplace platform.
However, there are some bunch of certain characteristics that goes well with marketplaces such as:
High frequency use : The services are being provided is particularly of high frequency, like ordering food, booking hotel or restaurants reservations or hailing taxi.
If the order and purchase cycles are longer, brand recall and the user engagement tend to urge minimized thereby preventing the marketplace from increasing network effects and scale.
Existing fragmentation of supply and demand : Fragmentation useful chains cause hidden value that are either not getting used or optimized. Further, it also means less friction for a replacement marketplace player to enter the market.
Cumulatively there also appear to be greater advantages that sellers and buyers can receive from one another that they can’t by themselves.
Network effects : Over time, the marketplace need to be supplying you with value that’s better than the one that you simply received within the beginning. In short, the more folks that use the service, the higher it should get at providing it. Network effects of this type find yourself creating tremendous value for both buyers and sellers.
Beneath this view of marketplaces, a helpful distinction can further be made between different categories of marketplaces during this regard. during a sense, not all marketplaces are created equal.
Accordingly, based upon the services and products those marketplaces are sorted and divided into three major categories : Basic listings, Curated marketplaces, and Managed marketplaces.
Some characteristics are listed below.
Basic listing : These are the simplest listing platforms that basically allow anyone to sell any products that they own in some particular terms and condition.
A prominent example of this model within the beginning was Ebay and Craigslist. Such platforms haven’t any tabs on the pricing of products placed on the corporate also as they are doing not dictate the precise user experience (UX) for every good.
Curated marketplaces : The only difference between this and the basic listings model of marketplace is that the added input that the marketplaces themselves provide to form the assure user experience may be a somewhat a standardized one.
In such a model, there’s a filter imposed to vet services/goods providers. additionally , there are mechanisms in situ that manage the curation experience through ratings then on. an outsized chunk of the marketplaces that have gained scale and have entered the billion+ valuations like AirBnB, Etsy and Groupon are often bracketed under this rubric.
Managed marketplaces : The last category is that during which services are still provided by a 3rd party.
However, the environment, pricing also as service experience and customer support are all guaranteed by the marketplace itself.
Uber and Ola are excellent samples of how an efficient and effective marketplace can develop the trust with buyers and sellers under a constant user experience that successively includes an assurance that is actually provided by the marketplace in regarding the certain basic quality control parameters.
Accel and marketplaces
At Accel, we have worked with numerous marvelous business people and helped them in building
organizations that have had first rate commercial centers at the center. Internationally, we have driven
the charge in helping assemble commercial centers that have re-imagined classes.
In India, our organizations with business visionaries in the commercial center classification have run from enormously effective online business players, for example, Flipkart and Myntra to film/occasion ticketing stage BookMyShow and taxi hailing administration Uber and Ola.
All the more as of late, we have likewise supported creative new organizations across enterprises, for example, Capricoast (home furniture arrangements), Coverfox (purchasing protection on the web), Medigo (orchestrating therapeutic the travel industry), Portea (medicinal services at home), PropTiger (land exchange facilitator), Swiggy (nourishment requesting and conveyance), Vedantu (internet coaching for K12 understudies), UrbanClap (all your nearby administrations) and ZopNow (basic food item requesting). Every one of these new companies associate specialist organizations across different parts while guaranteeing certain institutionalized quality that the Indian shopper presently expects and requests.
Amazon and Flipkart are widely used market places in India because of its guaranteed and assured service towards customers.
Furthermore, commercial centers additionally have huge incentive in streamlining and improving the effectiveness of business-to-business exchanges. Power2SME is a case of a commercial center that capacities in the B2B space. Through Power2SME, Small to Medium Enterprises (SMEs) get associated with providers of basic items and supplies that permits them to pick up reserve funds and at last scale their business all the more proficiently. Essentially, we have three different organizations in the B2B classification that are still right off the bat in their advancement.
The eventual fate of commercial centers
The more extensive environment of availability that has prompted the development of the new Internet economy additionally has different parts going from the enormous cell phone infiltration to web-based social networking commitment among India’s more youthful socioeconomics.
There is, in this manner, a colossal chance to revamp the original of Internet commercial centers (across businesses) and make them progressively receptive to the requirements of the youthful Indian versatile purchaser. Specifically, the requests of the cell phones would put more prominent accentuation on the User Interface (UI) and User Experience (UX) of the item so it fulfills the experiential needs of the perceiving Indian purchaser. The accentuation that portable items place has moved from being value-based – getting the best an incentive for a specific decent to being experiential – appreciate utilizing the medium that permits me to get a specific assistance.
In the present situation, the vibe and ease of use of the mechanism of benefiting the administration is nearly as significant as the administration itself.
Through the Marketplace’ crusade, we plan to connect with an entirely different arrangement of new companies that are utilizing creative commercial center models to disturb customary and first-age Internet organizations in Quite a while and to contact a great many Indian shoppers and organizations in the years to come.