How Online Marketplaces Become a Profitable Trend In The World
In a quick survey on small business owners this year, only 30 percent reportedly claimed that online marketplaces trends have had negatively impacted their business. On the other hand, a huge 70 percent of these business owners claimed that online marketplaces have created an incredible change in increasing their business sales and profit. The survey proves a great difference between businesses which has been brought online compared to those which business owners remain in the traditional method of selling and providing their services.
1. Great! Let’s talk about these online marketplaces.
Online marketplaces trends are the most popular means of increasing business profits and revenue today. An online marketplace is simply some app or a website created to bring shopping and services into the next level using different sources. Two of the most popular online marketplaces for shopping are Amazon and eBay. These sites sell almost everything you need in your home, office, health, work, personal needs and more.
At first, there is just a small percentage of businesses that were brought online. However, as many business owners find online marketplaces trends even more interesting despite the high competition, they still manage to give it a try. This resulted in a 24 percent of businesses that sells on Amazon, 22 percent on eBay, and the rest sell their own products with the help of their business acquired websites.
2. Products Selling vs. Digital Products vs. Digital Services
A product-based marketplace requires more effort. First, you need to have online marketplaces trends where they are selling the products. Second thing is to have a logistic of delivery and where to make the shipment in order to satisfy the buyers. Selling products will give you an average of 10% charge per unit. However, taxes, transaction fees, and other operational costs will leave you with only a little profit margin.
Digital products/services are both great businesses online. Digital products are used to deliver information in the form of something that can be used, read, listen to and visualize online. Stock photos, website themes, templates, mock-ups, graphics, pre-made logos, fonts and the like are known as creative work digital products which you can sell in most online marketplaces trends or even in social media. Meanwhile, online courses, ebooks, masterclasses, apps, software podcasts, music, videos, and workbooks are known as info-based digital products.
Digital Services cannot be more different from selling digital products except that it sells services like coaching or services which can be done to you online. Virtual assistant work, business consulting and personal coaching are some of the most common digital services.
3. Online Marketplaces Trends As A Profit Generator
Now, you already have the idea of what online marketplaces are as well as have something in mind what type of products/services you want to start; here are the ways how online marketplaces trends work as a profit generator.
There are six most common ways to get profit from online marketplaces. Most of these do not necessarily require that you have a college degree to start an online business. Basic knowledge in business operation and some proven strategies will be helpful in making you stand out which forte you excel.
4. Lead Fee
The lead fee is charged that is similar to how the commission models and posting charges work. With the Cost Per Lead (CPL) online advertising business model, you can earn in every customer sign-up. These customers are interested in the advertiser’s offer and you’ll be paid for each lead you make.
5. Subscription Fee
Otherwise known as membership charge, subscription fee can be one of the very profitable online marketplaces trends. You can take a charge in a monthly or yearly fee. Dating sites, website service subscription, apps, video stream subscription and more are examples of subscription fee offers. Customers pay for a recurring price monthly/annually in order to access digital products/services. This business model is very common online especially in offering online courses, coaching, and training.
6. Listing Fee
The listing fee is a charge made per site listing instead of per transaction. The most common listing fee charge is used by Etsy in creating their additional source of revenue. Some calls listing fee as insertion fee. You can charge fees depending on the item’s value and the number of days that the customer wishes to keep the item. The higher the item value for auction, the higher the listing fee you can charge especially when the customer wants a listing prioritization.
7. Commission
The commission is an applicable profit generator in most online marketplaces trends. It can be earned through selling products online, providing products, and rendering online services. A commission is a fixed fee earned in every sale on the site. Somehow, a commission is earned as a percentage of the total price of a sale. New online platforms prefer a commission-based earning for aside from making things easier, this model has been tested for so many years.
8. Freemium
This is a Center Offering Free business model. Freemium comes from a combination of “free” and “premium.” This model is popular among smart app developers and internet start-ups offering digital products. When customers get interested in a digital product, they’ll get basic features of the product for free. Charges will apply after days of trial or if the customer wants better product features and functionality.
9. E-commerce Service
E-commerce service is specially designed for product vendors that do not have their own website but can use some online marketplaces trends to be profitable. You can make deals with these vendors and offer to sell their products online. This is a triple win situation for you can earn, get customer’s trust and expand your supply.
