Understanding Marketplace: Types, and Examples of Marketplace

Actually, what is a marketplace? In general, the meaning of the marketplace is a certain place where the market or buying and selling activities between shop owners and consumers take place publicly.

At present, the term marketplace is very closely related to e-commerce activities . In this case, understanding marketplace is a type of website or e-commerce application that facilitates trading activities between shop owners and online shoppers.

In practice, the marketplace provides space to conduct online buying and selling activities, but is not responsible for goods sold in each of the stores in the marketplace.

Although not responsible for goods sold by each store, the marketplace is responsible for the security of the transaction process between the seller and buyer. In other words, financial transaction activities are regulated by the marketplace for the convenience, comfort and safety of its users.

Also read: Understanding E-Commerce

Types of Marketplace

After knowing the meaning of the marketplace, questions might arise; what types of marketplaces currently exist? Broadly speaking, the marketplace can be grouped into three types, namely:

1. Vertical Marketplace

This type of marketplace is a marketplace that trades one type of product obtained from various sources. In other words, the products sold come from many suppliers but the type of product must be of one type.

Example; Mobil.123.com site , a marketplace that only sells car products, both used cars and new cars.

2. Horizontal Marketplace

This type of marketplace is a marketplace that trades several types of products that are still related to one another.

Example; Zalora.co.id site , a marketplace that sells products related to fashion, ranging from clothes, pants, shoes, bags, accessories, and others.

3. Global Marketplace

This type of marketplace is a marketplace that trades a variety of different types of products and is obtained from many sources. The goods sold do not have to be related to one another.

Example; Tokopedia.com site , a marketplace that sells various types of products, ranging from household products, automotive, computers, health, hobbies, and so forth.

Also read: Definition of Dropship

Benefits of the Marketplace

There are many benefits that can be obtained by sellers and buyers from the marketplace. In addition to ease of transaction, convenience, and security offered by the marketplace makes this industry grow.

Referring to the meaning of the marketplace, as for some of the benefits of the marketplace are as follows:

  1. Ease of Getting Buyers

Marketplace is a place where potential buyers search for products ( window shopping ) they need. That way, the marketplace is a place where prospective buyers gather and are ready to buy anything.

This is a benefit that can be obtained by store owners in the marketplace. They do not have to bother looking for visitors, because basically a marketplace will always be visited by many people.

  1. Ease of Getting Products 

Currently online shopping is no longer a new thing in Indonesia because it has been done by Indonesian people from various circles. With the marketplace, people who want to find a particular product do not have to come to a store that is far away, but enough to buy it online.

  1. Building Relationships Between Traders

Store owners in the marketplace can help each other, both in terms of product sales and other collaborations. With a good relationship between merchants will certainly further strengthen the business activities of every store owner in the marketplace.

  1. Transaction Security and Convenience

Generally, the marketplace regulates financial transaction activities within the marketplace. The marketplace provides security guarantees in the payment process so that the seller and buyer feel comfortable and are not afraid of fraud.

  1. Broad reach

The benefits of this marketplace can be felt by both sales and buyers. Marketplace sites can be accessed from anywhere in Indonesia. Even though the seller or buyer is on a different island in Indonesia, the online buying and selling process can take place online.

 

by Abdullah Sam
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