A Service Marketplace builds a bridge between the service provider and the service seekers. The industry is booming and the existence of such companies is providing businesses to many. India’s famous service provider- Urban Company, US-based Upwork, a freelance service provider platform-Fiverr, all are popular Service Marketplaces ruling the industry. We will be discussing these famous service marketplace companies later in the same article.
A service marketplace startup can be an inspiring hyperlocal business idea for aspiring service providers. A website with multiple services will act as a service marketplace. Several services like hose keeping, Auto-cleaning, personal care, fitness training, tutoring, writing, designing, etc. can be started.
People use a website to buy services from individuals, professionals, or businesses to cater to the need. But the pressing question which arises here is where does the revenue for the marketplace platform come from?
The commission is the key! Service Marketplace runs on the fastest revenue model-commission. There will be three interfaces to establish a business model for a service marketplace:
- The Admin: One who owns the website and gets the commission
- The service Provider/freelancer: Registered as a service provider like a freelance writer or an electrician. He gets the money from the service seeker by providing the service after the task gets completed.
- The Service Seeker/customer: Individual or the benefiter who will be getting the service by paying the service provider.
A marketplace can have some other revenue models too but the commission model is the most lucrative one.
Service Marketplace businesses can be established in multiple domains. The services can be categorized according to the industry and niche.
Fiverr is a freelance service marketplace for business. It offers 300+ digital services across the world. It is one of the most popular freelance service marketplace businesses.
Upwork is another Service Marketplace Company where you can find the right freelancer or agency for your project. It is the world’s largest hiring platform that connects professional freelancers and savvy companies.
Companies like Fiverr and Upwork are making a profit out of every transaction that occurs on their site. This revenue model is named commission and is the most popular marketplace monetization strategy.
Urban Company: With 30000 + skilled service professionals near you, Urban Company is expanding in many countries to meet all your needs-home maintenance, appliance & electronic repairs, beauticians, and much more.
If you want to try your business idea on the hyperlocal service marketplace, find a fast, inexpensive, and simple way to test it with real users.
The market size of hyperlocal services was projected at $1,324.2 billion in 2019, reaching $3,634.3 billion by 2027, showing a CAGR of 17.9 percent from 2021 to 2027.
Due to a lack of time and domestic assistance, home moving services have gained considerable popularity in the urban cities, and associated benefits such as service can be booked at one click, enhanced payment getaway, and real-time tracking, which further adds to the growth of the hyperlocal services industry.
For low investment hyperlocal business ideas and a better understanding of hyperlocal marketplace business, you can refer to our previous blog posts.
Establishing a Hyperlocal Service marketplace isn’t easy but with the help of experts and professionals, it can be done. You can make us your expert in your new journey. There are some modules available on the Knowband store which can help you start a hyperlocal service business. These modules are compatible with other modules and you can immediately start your hyperlocal service marketplace with the combination of these.
KnowBand provides Multi-Vendor Marketplace Addon to help eCommerce store owners build their own marketplace for sellers who can sell their goods to consumers.
Marketplace extension’s Main Features are:
- Easy seller monitoring and management
- Proficient seller dashboard
- Manage sellers’ commissions
- Effortless Category and Product Management
- Compatible with a mobile app and other modules
It can help you start your on-demand service business with ease.
- Customers can book services or online products with flexible schedules
- Easily manage appointments
- Perfect for hotel bookings with all necessary features
- Facilitates hourly and daily rental management
Hyperlocal Marketplace is the one-stop solution for your new business startup. Even if you are an owner of an existing eCommerce website for PrestaShop, by adding the Hyperlocal Marketplace module you can start delivering in your vicinity by adding parameters like location and distance range.
Hyperlocal Marketplace module has some amazing features which will allow you to manage your marketplace as admin. With the seller interface, sellers can add as many products as they want to. Since a marketplace admin earns by the commission or subscription revenue models, it allows you to add multiple sellers.
Key benefits of Hyperlocal Marketplace to admin and seller:
- Admin can manage sellers easily
- Sellers can add geo-locations where they can ship
- Allows customers to check product availability in their geographic location.
- Effortless Commission Management
- Membership Plans available for Sellers
- Easy and secure transaction
- Track seller transaction and earnings
Hyperlocal Service Marketplace is one platform for many sellers who can provide different services. Hyperlocal is getting more attention because many people are less likely to go out these days while others are carelessly going out in the world. Also, these hyperlocal sellers can deliver the service or product on-time as compared to big brand eCommerce companies. Most importantly, customers know the trusted sellers or store owners in their neighborhood. I can see tremendous opportunities in the market for Hyperlocal Service Marketplace.
If you are sure about this then don’t waste this golden time. Go Work!
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You can read more:
- Why should you have an Online Booking System?
- How to Start On-demand Grocery Business with Knowband Marketplace Modules
- Explore New Business Opportunities with Hyperlocal Marketplace PrestaShop Module
- Multi-Vendor Marketplace 101s: What, How & Where
- Hyperlocal Business Model: Go Local with this New Trend