Types of Online Marketplaces: Start your own with Multi Vendor Marketplace Module

Thanks to the idea of hyperlocal business models which are redefining the economy with on-demand delivery models. The idea of home delivery is gaining ground and businesses are cashing in on it. BigBasket a famous brand have established their hyperlocal marketplace in the year 2016 and the change in the pattern has provided a wide range of product availability to the customers with super-fast delivery.

With hyperlocal delivery model, BigBasket established an online marketplace for local vendors and sellers and they have integrated a network of all the possible bakeries and popular vendors. This move opened up the doors for many small businesses to grow with the help of a marketplace.

There are multiple types of online marketplaces categorised based on industry, focus and target audience. We will be discussing them one by one and how the Multi Vendor Marketplace Module can help you build your own marketplace is explained.online

Online Marketplace based on Core-Focus:

There are two types of online marketplaces based on focus segments: There are marketplaces that provide either one type of service or sell one category of products and the others are a hub for multiple services with a variety of niche.

  • Vertical Marketplace

A marketplace providing a single type of service and not diving into the pool full of fishes. Let us consider an example of Etsy, what started out as a simple place for people to sell crafts has become a behemoth.

  • Horizontal Marketplace

A marketplace where you will find many services or different types of products on one online platform. For example, a mall where you will find all the brands and products under one roof. An online eCommerce marketplace like Amazon is a horizontal marketplace.

Another broad classification for types of online marketplaces

A major feasible classification for the online marketplace occurs on the verticals they are offering:

·  Product-based online marketplace

This type of online marketplace deals with selling products. Like Amazon and Flipkart are product based marketplaces. Commission and subscription are the two ways product based marketplaces earn money. They can even charge for delivery fees.

·  Service-based online marketplace

An online marketplace where service providers can list and provide services like personal care, cleaning, plumbing, appliance repair, pest control, graphic designing, etc.

Popular service-based online marketplaces are the Urban Company, Fiverr, Upwork who are providing multiple services with hundreds of categories.

·  Booking or rental online marketplace

No chance you haven’t heard about a booking or rental service providing an online marketplace. Ola, Uber, booking.com, MakeMyTrip are the most popular websites for booking or rental Marketplace.

There are modules that can help you in starting a booking and rental marketplace.

Marketplace based on the platform

  • Mobile Commerce

A platform or an online marketplace for the purchase or sale of goods and services through wireless handheld devices or mobile phone

  • eCommerce

A two-party site, e.g. seller – shopper, company owner – investor, etc.

The crowdfunding-the website enables people to post their projects and raise funds through fundraising efforts for their execution.

Marketplaces on the basis of Customer Type:

B2B – an online marketplace for the exchange of goods or services between companies or two business merchants

B2C – an online marketplace for the transaction from the merchant to customer for goods or services

C2C– an online platform for the transaction between customers for goods or services

How to start a Hyperlocal Marketplace with Multi Vendor Marketplace?

An online marketplace should have a seller and customer-driven features covering all possible requirements of the admin, seller, and the consumer. A multi-vendor marketplace extension is a module that can serve you well for setting up a B2B or B2C marketplace.

You can customize the settings as an admin. With Multi Vendor Marketplace module the seller who registers on your marketplace can easily manage the functionality for providing the service or selling a product to the customers.

Benefits of Multi Vendor Marketplace

  • Protection and guarantee for users
  • Authentic sellers and customers
  • Customizable settings and easy to configure from admin and sellers end
  • Track product details and orders for operating intermediate transactions
  • Marketplace handles the complete process
  • Multi vendor Marketplace provides superior customer experience

How to generate revenue with an Online Marketplace using Multi Vendor marketplace addon?

Based on Commission Model

How does the commission model work for Multi Vendor Marketplace? A commission is a percentage or amount of money a person gets when the product or service is being provided to the customer. With the aid of Marketplace Module, the store admin can set up a global commission for the sellers.

Using Multi Vendor Marketplace, commission for the individual sellers can be set. It provides the marketplace owner with the functionality of the category level commission. Marketplace admin can charge different commission rates on various marketplace product categories.

By offering a Membership Plan

Membership plans allow the store administrator to launch a subscription-based program. If the store administrator allows membership plans to work, then all new sellers and current sellers will have to purchase a marketplace membership to list their goods in the Multi Vendor Marketplace.

The marketplace owner can allow a free membership plan in which sellers can list only restricted products. Store admin can also send custom notifications to those sellers whose membership plans are about to expire. By giving a free subscription for a limited period will grab you more sellers in your market place.

Conclusion:

Some vendors and small businesses think it is easier to sell their goods in an online marketplace than to build a website and look for technological tools that handle several e-commerce sites. A marketplace is easy to manage with multi vendor marketplace addon.

If you’re willing to have an omnichannel approach with several online marketplaces, research all the industries and niche and think about which one suits you best and looks more lucrative, to begin with. Then we’ll help you keep your product details in order, safely, conveniently for all your marketplaces and networks.

The Multi Vendor Marketplace module is available for PrestaShop, OpenCart, Magento and Magento-2 stores. The modules are compatible with Return Manager extension available for all the platforms on Knowband store.

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Top 10 Hyperlocal Business Ideas for 2020

Hyperlocal delivery is a new style of shopping. Everyone is looking for a home delivery option for the required things to avoid going out. Moving out of the walls for shopping isn’t safe and buying stuff from a supermarket or a grocery store can put you into risk.

Practicing social distancing, taking extra care, and maintain hygiene is the new normal. We are now habitual of the work from home and not willing to leave the comfort zone. Every coin has two sides. With the dark side of the pandemic, On-demand, near-me, hyperlocal delivery services are the new business opportunities that came into existence.

Hyperlocal delivery businesses work in a small region by providing different types of services. The process can be monitored in real-time.  To start a hyperlocal business you need to decide the service you want to provide or you are good with, find the target audience, decide the geography and make it happen in the given time.

Hyperlocal delivery business overcomes the biggest constrain of renting or owning a physical space. Instead, you only need space on the cloud and an app or a website, to begin with.

I will be discussing the top 10 low investment hyperlocal business ideas for 2020. It is important to understand the concept, how it works and for that, you can refer to our blogs on Hyperlocal Marketplace. The hyperlocal business basically revolves around on-time home delivery.

1.     Fresh Edibles

Getting your morning bread and fresh milk delivered on your doorstep that too from the store you purchase from can be a great relief.

The fresh edibles delivery business is the niche you won’t fail on. It hardly requires any investment. The main focus of hyperlocal business is to cater to the needs of people living in a certain geography. The store owner can decide the region or the distance where they would like to serve.

All you need to give express delivery for fresh fruits and vegetables, bakery products, and dairy items. Managing an inventory and keeping the tracks of the demand will help you expand.

2.     Groceries

Next in the category is the Grocery home delivery business. A hyperlocal marketplace for a grocery business can give you a kick start. No individual can live without food grains, cereals, millets, or pulses. You can start delivering these day-to-day essentials on the doorstep.

An e-grocery has observed tremendous growth in the last three years. Now after the pandemic, it is the most demanded and successful businesses in the economy.

3.     Health and Hygiene

I have put health and hygiene in a single category because the two works together. The hyperlocal business idea does not just stick to delivery services but giving on-demand services is an important aspect. In the last couple of years, e-pharmacies has been a popular concept in India. Now the need is higher than ever before.

COVID-19 outbreak increased the demand for home assistance, nurse facility, medicine delivery, doctors’ home visit, and many more on the line. You can connect with some of the doctors in your area and ask them to join your hyperlocal marketplace on-demand service platform.

Provide Baby care facility, old age caregiving services, home delivery of pharmaceutical products and medicines in your neighborhood. If you live in a small town then it is a great idea for starting a new hyperlocal business.

4.     Personal Care

Traveling kilometers for personal care in heavy traffic will waste your weekend. Why not bring the salon to your home? Oh! Yes, I have quoted the line from an advertisement but this can become a reality with the hyperlocal business idea of personal care.

Personal care home services have received a good response in urban cities in the past few years. Urban Company is one of the popular personal care company providing on-demand services. You can start with beauty salon services, Spa and Massage, or hairdressing.

Also, you can make the home delivery of personal care products like soaps, shampoo, floor cleaners, detergents, mops, etc. You will have to make some research before starting this business. For that, you can ask people to fill up a form asking all the personal care requirements for a week.

A good plan can bring success and this won’t need much of an investment. Hyperlocal on-demand services in personal care can be a good option to start with.

5.     Expert Hospitality Services

Make a list of all the handyman services a person needs. You can gather all the experts in a place for providing services like plumbing, carpenter, welding, stone works, etc. for your new hyperlocal business. A craftsman or an expert in any of the fields can work with you on a commission basis.

You can take advantage of the current situation and ask people in your neighborhood for the requirements. It would be more suitable for a retailer or an artist to work with you in this crisis.

Handyman implies a person who can do minor repairs and tasks but who does not have the qualifications and experience or credentials for more than minor repair jobs. If the work does not need expertise or mastery then you will easily find many people looking for work.

Start giving work to people and make money for you too. This can be at the top of the list as not many people are into this business.

6.     Cleaning Services

Providing cleaning services can be a perfect way to start doing what you love — soon, with a low barrier to entry. Start with your neighborhood and see the response to this. You can hire people on your behalf and provide cleaning services like vehicle cleaning, carpet, cleaning, sofa cleaning services, or garden maintenance services.

Word of mouth can work for this hyperlocal business. Share ads in your neighborhood, and get more bang for your buck by gaining some local businesses as customers. Usually for a comparable amount of work they would pull in a higher paycheck.

7.     Pet watching

Do you love pets? Consider turning into a pet sitter. Or even if you don’t then you might find people who do and in the need for work. Start a hyperlocal business with pet watching services or with pet suppliers.

Pet suppliers are equally as important as food or medicine. A business idea needs some strategic planning and if you see many people with pets around you then this can be a good option for starting a hyperlocal business. You will be able to provide the required items on time which gets delayed with existing eCommerce stores.

Join in to start a pet sitting service like Rover or Care.com.

8.     Fitness equipment

In my opinion, fitness gyms are the most unhygienic place out there. Many people use the same machinery and equipment which needs sanitization every now and then. You can start a hyperlocal home delivery service by providing fitness equipment or renting them for a few days.

People are more conscious about health in urban areas and this can be a one in a million idea for a newbie with a little investment.

To get the word out, give in-home seminars, customized diet and fitness regimens, and online group boot camps. Don’t forget to load an Instagram feed with motivational quotes, free workout videos, and even nutritious snack ideas — it’s a great way for fitness gurus to create their brands.

9.     Logistics

This can be put a bit above in the list but all the mentioned hyperlocal business ideas are equally important. A document delivery, on-demand pick up and drop services, Stationary delivery application can be a great help during this work from home time.

We are well aware of the fact that people are going careless with social distancing. Why not start a business providing delivery services like existing courier companies? Here, the only difference will be the addition of the location factor.

Hyperlocal delivery services will operate in a smaller region with safety and hygiene. You can pick a parcel from one place and deliver it to another in minimum time.

10.Tow-truck

Tow-truck business can be a good choice when we talk about hyperlocal business. With a tow-truck, you can provide services like movers and packers, tie-up with delivery service providers, become a partner with local auto repair shops, motor clubs, auto auction companies, and property owners.

This might need some investment if you do not own a truck or a suitable vehicle but can make a lot of money if planned well.

A tow truck company makes money by charging fees for a tow. A standard charge will include a flat tow charge, a mileage fee, and a storage fee. Hyperlocal tow truck business can be profitable and if done with safety and hygiene, people won’t mind paying a little extra.

Pro tips from the author:

A hyperlocal business has two constraints, time and geo-location. Firstly, identify your small business idea and determine if your business idea works well from home. If you are a beginner, then start as a side business or hobby. Research well before starting up and reach your target audience. You can take the help of a website developer or a mobile application for creating a market place. Make a strategic business plan. Get to work!

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