Online marketplaces have become the most popular selling channels amongst consumers across the globe - think Amazon! Through Amazon’s convenient online experience, they’ve given consumers the option to no longer have to physically go to the grocery store, pharmacies, retail stores, etc. Almost every item a person can need is accessible through the simple click of a button. Businesses leveraging these types of digital platforms, like Amazon, are effectively connecting sellers and buyers through seamless and accessible user experience.
Due to the accessibility these platforms provide, it is safe to say that online marketplaces are currently, and will continue to, redefine e-commerce. According to a Digital Commerce report, companies leveraging e-marketplaces see their annual sales continuing to grow year-after-year. In 2019, these platforms accounted for 58% of global e-commerce revenue. With digital marketplaces' continuous evolution, it is important to examine the current successes and consider the ways these platforms will keep growing as consumers’ needs are constantly changing. The reason behind this online success is simple - today, people care most about convenience. We all crave instant gratification, such as same-day delivery.
The growth of e-commerce is evident, although sustaining that growth will require companies to deliver an unmatched customer experience and value on every transaction. While the majority of online marketplaces are already available on mobile devices, in the future, a number of these platforms will be app-first, or even app-only. An example of companies doing this today include: food delivery services such as Postmates, GrubHub, or gig economy businesses such as Uber and Lyft.
Another interesting, and fairly new, online sector that’s quickly gaining momentum are SEMs (SaaS Enabled Marketplaces) - SEMs merge SaaS features with a classic online marketplace model. While marketplaces have the ability to create networks and communities of buyers and sellers, adding the software component on either the supply or demand side can create an extremely disruptive and convincing business model. Just as Paul La Londe from NineFourVentures states, combining SaaS features with online marketplaces strengthens competitive advantages, creates complex activity systems expediting growth and expands addressable markets over time.
According to GlobalData, by 2024, UK shoppers will spend 50% more than they do now on online marketplaces, with spending rising to a whopping £39.3bn. Whether it’s Europe or the U.S. - this is not just a trend, online marketplace growth is the way of the future. Buyers are going to continue to want the most accessible, convenient option.
So, if you are a business whose primary service offering is focused on “in-person transactions” such gyms, libraries, drug stores, etc, it is important for your company to become more tech-minded by adopting these new online service trends or you will get left behind by competitors who are already transforming the ways they conduct their businesses through digital technology solutions.
At VentureDevs, we’ve helped our clients adopt new methods of technology to keep up with today’s online marketplace trends while meeting their consumer’s needs and providing the most convenient user experience. Check out some of our case studies below:
To connect with our team of experts about a product you currently have or a product you’re looking to build, contact us at firstname.lastname@example.org.