Future of online MarketplacesXAdapter
Over the last few years, we have witnessed a phenomenal increase in niche marketplaces in the E-Commerce sector. The likes of Odesk, Freelancer, etc are changing the way businesses are being conducted. Today, you just need to go online to have an across the globe audience which augers well for your business.
But the basic questions remains – What is the future of these online marketplaces? Are we on a roll? Or, is it another bubble just about to burst?
We strongly feel positive about this trend.
This is why :
1. The big markets for E-Commerce (United States, India and China) are inherently service oriented economies. US has 60% of the population on service sector. The case is similar for both India and China. This bandwidth should allow us to come up with more niche marketplaces that cater to specialized set of customers. This is because we have so much of the economy based on services where vast majority of the transactions are taking place offline. In fact, this factor alone is sufficient to settle the debate. But let us look at some more points.
2. Marketplaces are the only places in the world where both buyer and seller needs are taken care off. The most interesting part is striking out a balance between making your store buyer oriented or seller oriented.
– if you make your store seller oriented, you have a huge portfolio after a defined timeframe.
– if you make your store buyer oriented, you evolve based on customers’ demands.
Each one satisfies a unique case. So, having a balance of these two perspectives makes your business quite fail-proof(at least on concepts). This makes us more optimistic about the fundamentals of these businesses in future.
3. Now here, the fundamental aspect of demand comes into the picture. Is demand for online goods/solutions on the rise? Yes, alarmingly! Internet has been a revolution in our lives and we are today talking in terms of providing internet to all! So our approach seems to be a quantitive one at the macro level. This surely is fodder for exponential increase of online marketplaces!
4. From the qualitative aspect of internet at the macro level, lots of countries are way behind others. This itself provides mass opportunities for frugal innovations (like light extensions that work with slow internet connection).
E-Commerce is the most happening sector today. We see no reason for it to slow down in future. So pull up your socks and lets move with the wave!