In the online marketplace field, there have been amazing advancements, and several platforms such as Etsy or Airbnb have proven the tremendous potential these marketplaces have. With a highly scalable business model and an idea that can be easily applied by a variety of businesses, this model has became highly sought after by more and more entrepreneurs. Young business persons that have attended a mentorship program at the National Entrepreneurship Network have shown amazing innovative ideas to use services such as those provided by Uber or Airbnb for a variety of purposes, showing the amazing potential of peer-to-peer marketplaces. Experts have analyzed and researched this type of businesses and, as a result, outlined 5 amazing strategies for increasing a peer-to-peer marketplaces’ potential and profits in the long run.
#1. Try to focus on a niche
While many early stage P2P marketplaces tend to have a wide range of products, many experts claim, this couldn’t be more damaging to a business model like this. For instance, those P2P start-ups established in two of the most prosperous areas of the world, Singapore and USA, tend to have a very specific target audience and an incredibly narrow niche. Taking care of your buyer’s short-term and immediate needs seems to work amazingly for these marketplaces, and this will allow you to grow your start-up in a sustainable and profitable manner. Make sure that you retail the products or services that have a great potential in terms of immediate purchases, as the size of the niche isn’t particularly relevant in this case.
#2. Take care of your listings
Acting in mind with the needs of your end-users is another important aspect to take into account. While your niche may be small, their expectations are high and you have to fill in a demand. Good quality checks have to be periodically added by your customers, as these will build a stronger reputation for your P2P marketplace. If you feel overwhelmed, take a break, do your best to attract high-quality suppliers and employers, first. This will make your business thrive in a highly competitive field.
#3. Leverage the existing channels
Your start-ups’ reach won’t be as high as it is in the case of the already notorious online marketplaces. However, you should use already-existing communities and groups to grow your own marketplace. Social media platforms have an increasing number of such communities and you are very likely to find eager potential buyers there, regardless of how small your niche is.
#4. Get the buyers first and sellers will come on their own
It’s always important to remember that if your marketplace is flourishing with buyers, sellers will come on their own, as the potential of your marketplace becomes obvious. In some cases, start-ups spend plenty of resources, energy and money into feeding sellers on their platforms, but if the buyers aren’t there, all these efforts are in vain.
#5. Turn your product into your unique selling proposition
Even if a lack of capital may be seen as a burden, this shouldn’t impede you in developing a better product from the end-user perspective. Try to find some focus areas which have to be improved, work on those and clients will also follow.