An online marketplace is a web portal designed to consolidate the vendors and customers around the world for their business purposes. There are many types of online marketplaces that facilitate different parties to conduct their business independently. Similar to traditional markets, there are mainly three types of online marketplaces.
It is an abbreviation used to denote business to business marketplace. This model provides a business entity with an online marketplace to sell their products directly to other business entities. This type of marketplace is also utilized by wholesalers to procure their required products. This is an ideal marketplace for business entities, since, this type of online stores enables the business to engage in business with other business around the world. This will also help the entity to identify new clients and to increase the customer base. The Business to business market also consists of the vertical online marketplace which enables a producer to access the producers providing raw materials for such entity, which will enhance the transparency in business deals.
B2C or Business to Customer is an online marketplace facilitating the vendors and ultimate consumers to interact and engage in business deals. This type of marketplace is also known as an online retailmarketplace, since, the function of these models is the same as that of a traditional retail store. Presently more than 50 percent of the population around the world are engaged in online business to customer marketplaces due to the distinct features of such a market. These markets are very popular among the society, since, this type of market provides the products at much lower rate than a normal market to their customers. This type of marketplace will also enable the retail vendors to increase their customer base and also to identify potential customers around the world.
This is one of the revolutionary models of an online marketplace. One of the major problems faced by a normal individual, if he wishes to sell any product, is identifying a potential buyer. The Customer to Customer business model was introduced to alleviate this issue. This type of marketplaces enables an individual person to identify and sell any product to any other individual from any part of the world. These markets will also help small producers to identify potential consumers.
Currently, online marketplaces are more preferred by people than normal markets due to its transparency and flexibility. Now there are many traditional stores establishing their independent online portals to attract more consumers. Even companies with large market capital are also moving to online markets. As per the experts, even the largest companies by market cap are also switching to online modes of sales.