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Understanding the Marketplace Business Model

Today, as online marketplaces in the sharing economy disrupt the traditional ways of conducting business by removing the middleman, it is imperative that we understand the transformative power of the marketplace business model. After Airbnb and Uber paved the way for marketplaces and on demand businesses, many startups are being conceived along the same business models that allow suppliers and consumers to interact and create value for one another at an unprecedented scale. Here’s a look at what a marketplace is and how it may very well be our future.

INFOGRAPHIC ON THE MARKETPLACE BUSINESS MODEL

We have tried to give a comprehensive overview of how a marketplace works. Feel free to leave your feedback in the comments. Hope you found it useful and will share this infographic to spread awareness.

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FACTS AND STATS TO TWEET

  1. 4 of the world’s top 10 valued startups are marketplaces!
  2. 4 times as many people make a million selling on Amazon than on eBay!
  3. A survey found that 63% of sellers sell exclusively on online marketplaces!
  4. A survey found that 55% sellers have a profit margin of 20%!
  5. 87% sellers make their money on fewer than 1,000 SKUs, as per an online survey

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