Marketplaces are one of the most interesting online business models today. Interesting because they can greatly benefit from strong Network Effects, which eliminates putting in substantial marketing dollars.
Add to it the evergreen “chicken or egg” dilemma of marketplaces – “Buyers need to see variety to buy from you but for sellers to take the pains of onboarding and start selling, they need to see the huge buyer numbers first,” and you have an ever-evolving business in your hands.
The fact that a huge majority of today’s profitable startups are, in essence, a marketplace, amplifies the lure of building your business on top of one. And while there could be multiple factors that make marketplaces successful such as zero inventory costs, greater transparency, exponential growth, buyer confidence, etc., almost no marketplace business has been able to grow without first figuring out either the chicken or the egg side of the problem.
While it depends on you, from which side you want to start building your business, let’s show you how “Engagement” can help you set the footing right for your marketplace business; specifically, in terms of,
- Engagement as a Growth Hack
- Engagement as a Scaling Mechanism
- Engagement as a Seller Enablement Tool
Let’s dive in!