Building 2 Sided Marketplace

If you try to appeal to everyone you will end up appealing to no one.

Building 2 sided marketplace. The platform s business model is to take a percentage of the transacted value for connecting producers and consumers. Probably the most important overall strategy for building a two sided marketplace is that you must start with a niche. The platform also has other features that help sellers such as giving the store a blog and customer analytics. Gumroad is a two sided marketplace for digital goods.

Providers customers and the marketplace entrepreneur. It s all about learning experiments and new experiences. The purpose of a two sided marketplace platform is to facilitate interaction between providers and customers. The two sided marketplace business model double sided markets create value for all parties.

You can build a two sided marketplace regardless of the industry you are in. Recently our team was creating a two sided marketplace platform and we have some insights worth sharing. Two sided marketplaces are those that bring two user groups together to help them get network benefits from each other and generate economic value. Companies like ebay in ecommerce facebook in social media advertising uber in transportation industry and upwork in gig economy and dating apps are all examples of two sided marketplaces which serve the interests of multiple audiences like manufacturers wholesalers.

The service allows creators to set up a digital store and collect payments. The platform doesn t own the supply chain of value but rather controls the network of third party producers of value and the consumers coming to the platform to consume that value. Trying to target a market opportunity that is too big or take on a competitor head on is a recipe for failure.