The State (and Future) of Digital Marketplaces - An Overview
When you think of marketplaces, what comes to mind? If you’re like most, you probably think of Web 1.0 properties such as eBay. Founded in 1995, the company started the digital marketplace movement by providing a relatively safe platform to enable buyers and sellers to transact, regardless of if they were within the same region or on different continents.
Since the Web 1.0 days, marketplaces have gone beyond e-commerce, expanding into a variety of verticals such as hospitality, transportation, home services, and more. The primary driver of these advances is the fact that mobile devices have evolved to provide buyers and sellers with convenience, choice, simplicity, and personalization around the clock.
In recent years, such technologies have caused marketplaces to grow astronomically. Consider the following facts:
- Marketplaces are generating significant revenue, with two-thirds generating more than $50 million annually and one-third generating $100 million or more
- Analysts predict that marketplaces across the globe will account for 40% of the global online retail market by 2020
- In April 2018, Amazon reported to shareholders that more transactions were fulfilled directly from sellers than from Amazon’s fulfillment centers, for the first time since the company was founded
Wondering if this is relevant to you? You might be running a marketplace without even knowing it. Marketplace operators – are you curious to learn more about the current state of your business market, and where it’s evolving?
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