The traditional business owners are looking for various resources to get their business to the next step.
One such resource is this article which has a detailed description of what is a two-sided marketplace and how it could be utilized more efficiently to upgrade.
You’ll get to piece together all the information regarding the two-sided marketplace, the market condition, the step-by-step guide to start a two-sided marketplace business.
We even threw you the top-secret information on the cost of developing a two-sided marketplace. We assure you that this business model is like winning a lottery especially during this pandemic time, where people want everything in just one click.
What is a two-sided marketplace?
The two-sided marketplace (aka multi-sided platform, multi-sided network, or multi-sided markets) is the connecting place between both the buyers and sellers of the products or services under one roof.
What is so special about the two-sided marketplace? → Read the next section to know why any businessman or aspiring business owner must be thinking of starting an online marketplace.
How two-sided marketplaces created a digital revolution?
The two-sided marketplace business has substantially changed the course of action for the business world.
As we already discussed, people want everything at their fingertips, it’s extremely sensible and practical to heed to the needs of the end-users.
PwC (PricewaterhouseCoopers) has estimated a global revenue hike of $335 billion or more, by the year 2025 for the sharing economy-based business.
Standard & Poor’s 500 Index has declared that the two-sided marketplace business has seen a 330% growth in the past decade and it’s not planning to stop anytime soon.
Hope these are enough reasons to contempt why you should be considering a two-sided marketplace business!
What is the most effective method to build a two-sided marketplace?
Let’s get aware before starting any two-sided marketplace. The content below explains the 4 core steps to build the right kind of marketplace for your business.
Step 1: Deciding on the business model
The two-sided marketplace app requires a business model to adhere to. The aggregator model is widely practiced when it comes to building an online marketplace for your business.
The aggregator business model serves as a connector between the people who are in need of products or services and the people who are able to give the products or services.
Step 2: Narrowing down the revenue model
When there is a business model to start a marketplace business. It is essential to finalize a revenue model. The commission-based revenue model complements the aggregator business model.
The earnings are collected from the people who are availing of the product or service and the income is distributed to the product or service providers.
As the admin of the marketplace, you’ll be getting a commission for a particular booking.
Step 3: Choosing the right features for your marketplace business
Market research and meticulous competitor analysis are the few ways to help you understand what kind of features you will need for your marketplace business.
If you are planning on starting a rental business - make sure you have legit listings (postings) in your two-sided marketplace startup.
If you are planning to start a taxi booking or delivery-based marketplace - be definitive on having strong features.
What is the cost of developing a two-sided marketplace?
The most asked question on creating a marketplace is the cost of development. We are unraveling the secret that most people withhold.
If you are planning to develop a two-sided marketplace app from scratch it is going to cost you a heap load of money. Usually, the developers charge from $20,000 - $70,000. (Phew! That’s a lot of money)
But if you prefer the ready-made solutions it’ll cost around $5000 (including the white labeling charges) with all the latest features, built using the latest technology, and $25 per hour labor cost on other discussed features.
Best two-sided marketplace examples
Let’s get to know a few examples that might jog your memory as to how successful your business would get!
eBay is a goods and services exchange market that brings in both the buyers and sellers in a common marketplace. The platform has safe transactions and the buyer can choose from multiple sellers.
Airbnb is one of the classic examples of online marketplace business. They connect the people with houses to rent and people who are in need of rental houses. It is a vacation rental marketplace business that has a revenue of $887 million as of 2021 (first quarter).
A few two-sided B2B marketplace solutions to build your startup
We took a look at the examples that are doing very well in the two-sided marketplace business. It’s time to check out marketplace solutions that will help you build such businesses on the examples.
RentALL - Airbnb clone
RentALL is a vacation rental marketplace solution. This is one of our flagship products. All our marketplace solutions are 100% customizable and scalable.
There are both app and web solutions (end-users) available and a web panel for the admin with higher-end market demanded features.
Wooberly is an Uber clone script. It is a taxi dispatch app and web solution that can be customized into anything (eg: courier services, tow truck services, handyman services, beauty salon services, logistics services, etc)
It is built using Flutter - a software development toolkit. The product has the latest features according to the market demand.
WooberlyEats is an UberEats clone script. It is an on-demand food delivery solution. It has 2 apps and 2 web solutions namely Eater and Driver app, Restaurant, and Admin web panel.
This product is also built using Flutter with creative UI and impeccable UX.