One of the great benefits of starting a marketplace over an online store is that there is no need for marketplace owners to invest in stock, since external vendors are responsible for upholding the inventory of their products. That is not to say that marketplace managers can wash their hands of all responsibility. Indeed, the quality of content sold on a platform — take Amazon as a prime example — is often attributed to the marketplace platform itself. In fact, their brand reputation often rests on their ability to offer the best quality, and widest variety, of the products their customers are interested in.
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.