[Video] The Three Laws of Successful Marketplaces

By: Charles Costa | October 17, 2018 | Marketplaces

Marketplaces, portals, and classifieds platforms—they’re different words, but in reality they are variations of the same thing. The common thread between them all, is that they are all platforms that bring together buyers and sellers so they can exchange goods and services.

At Kahuna, we’ve been focused on marketplaces for awhile now, and that has given us a unique perspective into the ways these companies work. One of the biggest things we’ve found is that companies who view themselves as retailers or e-commerce businesses don’t think they are marketplaces, when in reality that’s far from the case.

Additionally, we’ve found a few common elements across successful marketplaces, regardless of their size or the scope of their operations. From these observations, we’ve identified, 3 core laws of successful marketplaces.

Those laws include:

  • An element of fragmentation, meaning that there are a variety of buyers and sellers
  • Building for trust. Buyers and sellers need to be sure that when they transact through the platform, they won’t face issues, and that if issues arise, that they’re taken care of in a reasonable manner
  • Providing autonomous value. This means providing services that benefit buyers and sellers beyond the transaction

To find out if your business is a marketplace, and the core elements of running a successful property, check out the video below!

To learn more about how the marketplace business model can help improve your profitability, check out The Kahuna Blog. Simply click the button below!

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Author: Charles Costa

Charles Costa is a content marketing manager who specializes in helping companies grow, one word at a time. Prior to Kahuna, Charles worked with brands such as Airbnb, Iron Mountain, and IBM on their content marketing efforts.

Charles' work has been featured in the Huffington Post, and he also was a contributor to the developer publication, Sitepoint.

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