There are many different types of online marketplaces that you can start. The following framework outlines them based on four different aspects: Customer/Seller Type, Product Category, Listing Format, and Business Model.

Customer/Seller Type

• Consumer-to-Consumer (or Peer-to-Peer): Both buyers and sellers are individual consumers. These platforms typically deal with secondhand goods or non-professional services. Examples include eBay or Poshmark.
• Business to Consumer: Businesses sell goods & services to individual consumers. These platforms are designed for new products or professional services. Examples include Amazon or Ticketmaster.
• Business-to-Business: Businesses sell goods & services to other businesses. Transactions within these marketplaces are usually more complex and higher in value. Examples include Faire or G2.

Product Category

• Multi-category: Platforms that offer a wide range of products across several categories. One example is Facebook Marketplace.
• Category-specialist: Platforms designed around a focused set of related product categories. Examples include StockX (shoes) and Reverb (musical instruments).

Listing Format

• Secondhand Goods Marketplaces: Listings are for secondhand or used products. Product condition and quality are key factors. Examples include Depop or Mercari.
• Primary Goods Marketplaces: Listings are for retail goods offered by the brand or manufacturer. One example of a primary goods marketplace is Amazon.
• Live Selling Marketplaces: Sellers host live shows to showcase and entertain customers about their products. Examples include Whatnot or Poshmark Live.
• Auction Marketplaces: Listings are auction-based and are settled based on a previously established time or set of rules. One example of an auction marketplace is eBay.
• Services Marketplaces: Listings are for services provided to customers and are time or deliverable based. Examples include Upwork or TaskRabbit.
• Digital Product Marketplaces: Listings are for digital products that can be downloaded after purchase. Examples include Etsy and TeachersPayTeachers.
• Local Marketplaces: Listings are for local goods & services where the buyer and sellers are located in the same neighborhood or area. Examples include Craigslist or OfferUp.

Business Model:

• Transaction fee based: Seller’s fee or buyer’s fee is levied as a percentage of the transaction value facilitated in the marketplace. Examples include eBay or Vinted.
• Subscription based: A recurring monthly or annual subscription fee is assessed on members or sellers to participate in the marketplace. Examples include Costco Membership or Amazon Prime.

It’s important to tailor the type of marketplace you start with the wants and needs of your community. Not all marketplaces fall cleanly into one category. Many are hybrid models that utilize more than one of the components above.

If you’re interested in starting your own marketplace, reach out to our Community team.