Commissions are by far the most popular revenue model for digital marketplaces. Although they might come under different names by different marketplaces - Amazon calls them referral fee, eBay has final value fees and Etsy refers to them as transaction fees - they are all the same thing: a percentage or fixed amount that a marketplace chargers a vendor for each sale they make on its platform.
Technology is the backbone to any digital business, let alone marketplaces. Indeed, choosing which technology will power the marketplace business is as important as deciding on the revenue model or how to brand the marketplace. A marketplace can be built using several different technology solutions: from open source software that the marketplace’s engineers can code themselves, to a SaaS e-commerce solution like Shopery. This is not a choice to be taken lightly: once you have picked your marketplace technology, it will have a sizeable impact on your budget, your in-house talent needs, internal processes and the overall scaling of your business.
“Frictionless” vendor onboarding and management, “transparent” vendor transactions and commissions, and effortless catalogue management are some of the glowing remarks Shopery Marketplaces received from software review platform FinancesOnline. In recognition of these achievements, we were awarded with the Premium Usability award for 2019.
Original content published by Ecommerce Foundation: ArticleMany of the world's most successful companies operate under marketplace models: Airbnb, Amazon, Uber, Etsy. Indeed. With the constant evolution of marketplaces, Ecommerce Foundation decided to interview Eduardo Aznar, Chief Growth Officer at Shopery. Together, we discussed the relevance and impact of marketplaces in today’s ecommerce society. Shopery empowers leading ventures and brands to build and scale their marketplace businesses through a SaaS solution.
Branding is just as vital to a marketplace as finding the right sellers, measuring the right metrics, or choosing the right revenue model. Whilst there is no single consensus on the definition of marketplace branding, a marketplace’s brand can be thought of as the personality that identifies the business.
Choosing which revenue model to implement may be the most relevant business decision marketplace owners need to address before launching, and one that must be reviewed continuously. Indeed, the chosen revenue model has a strong impact across the business, from the capacity to onboard sellers and convert visitors into paying customers, to supporting the business' cash flow.
Measuring and assessing metrics is key to success of any digital business. While metrics for traditional single-vendor online store models are well known to the public, marketplace models require a new set of KPIs.