You must be an aspiring entrepreneur who is extensively concerned about starting your online marketplace. And, that’s the reason you’ve landed here. A renowned marketplace must be what you desire.
Amidst the covid crisis, there are a few top online marketplaces such as Letgo, Olx, Quikr, etc that continue to be the forerunners in the classifieds industry. To be even more specific, fashion products, and day-to-day essential accessories, are some popular areas where online marketplaces have made their mark in 2022.
Thus, this shows that though the virus outbreak has turned the normal into a nightmare, and with every passing day the popularity of online marketplaces keeps increasing.
I am assuming that you’re inspired by the success stories of the big players in the market and stand solidly on the idea of creating an online marketplace application that will not only replicate but outweigh their success.
It’s prevalent to have doubts and queries when you plan to start one such classifieds marketplace. Worry no more! This blog will answer all your questions like, What is an online marketplace? What is the scope of the online marketplace in 2022? How do few marketplace apps work? The best approach to build a buy and sell used item marketplace app, How do you develop an online marketplace? and so on.
What is an online marketplace?
It’s important to realize that a local marketplace app is a mediator, an online bridge between sellers and buyers. The main rule of the modern marketplace is to sell so that the consumer can buy without even thinking about it.
Another vital aspect of a marketplace platform is transactions. A marketplace should provide the possibility to pay for goods and services safely and easily. It’s the owner of the marketplace which is fully liable for the safety of users’ data and the overall stability of the system.
Ultimately, the objective of any marketplace is marketing. Making it quite obvious because, to make money on transactions, real purchases are needed. For this, you need to draw in buyers, who want a good deal, and sellers, who wish to bring home the bacon.
Now, you may wonder if it is the right time for you to set foot in the classifieds industry and be successful. Let me explain to you in detail the scope of this online marketplace in recent times.
What’s the scope of an online marketplace in 2022?
The truth is, an online marketplace in 2021 has a massive scope. And, the recent classifieds statistics also suggest that the scope of the online marketplace is huge and the graph will keep moving uphill in the times to come.
As we all know, with the increase in internet and smartphone usage, people across the globe are opting for online shopping to meet their everyday requirements. Therefore, it’s evident that online marketplaces have evolved a lot over the years.
The statistics state that almost 40% of internet users are shopping online. Thereby, the classifieds retail sales are expected to grow at 20.2% CAGR by the end of the year 2023 worldwide.
So, this is the exact time to start your online marketplace. Beginning your online marketplace at this hour will help you establish your online presence as well as access a much larger customer base.
Now, without wasting any time let’s get to the main thesis of this article: How does a marketplace app like Letgo, OLX, or Quikr work?
How does an online marketplace app like Letgo and Olx work?
Market research starts with studying big players in the domain, which are your main business rivals. For example, let’s consider big marketplaces like Letgo and OLX.
Founded by a former CEO of OLX, Alec Oxenford, Letgo was launched in 2015. Letgo is solely a mobile application, so you can’t use it on a desktop device as you do with other classifieds apps like Craigslist. Letgo is a free person-to-person mobile application allowing users to buy from, sell to, and chat with other users nearby.