Multiple revenue models have been introduced in the market, and there is a significant change in the way marketplaces function due to their evolution. Here are some of the ways in which you can unlock the new revenue streams through owning your own marketplace:
Charge for sign-ups
Sign up fee is collected from those who wish to sell through the marketplace platform. It is one of the straightforward ways to earn instant revenue. You can consider it as a flat payment to collect from the sellers. For this, you would not need complex gateways as the sellers would pay you upfront. Another way that you can make money from the sign-up fee is to sell your idea to the vendors and convince them to pay to join your marketplace early. A few things that you need to keep in mind while collecting sign up is to charge a feasible fee so that the sellers are willing to pay it. You can also give early bird offers to attract more and more people.
Subscription model with recurring payment
The subscription works wonders as long as the users are willing to get more value out of the services, and they are able to justify the money they are paying you. The same applies to the online marketplaces, as the consumers would be ready to pay you according to the value that you would be offering them. During the initial stages of implementing this model, you should provide a free trial to the sellers, make sure that you provide them value for the money that they are paying you, be specific about the money transfer, and make a plan using which you will be able to engage the sellers for a longer time.
Product listing fees
Product listing fees are popular when you are considering two-sided marketplace platforms. When you start out with your online marketplace, you will find listing as one of the easier revenue models which you can implement to grow your business. For this, you can charge the listing fee when you set the products on sale. When you are starting out with the product listing fees, you should make it easy for the sellers for implementing the fees, give them a convincing argument and make sure that you maintain transparency while you are listing down their products
This is among the most popular marketplace business models that you need to look out for when you are selling over the online store also to the marketplace owners. However, it might prove to be a difficult model to implement by the sellers. The payment flows in this particular type of model include the following:
Direct payment in which the customers directly pay to the vendors
Aggregated payment in which the customer collects the payment and give it to the vendors in the form of payouts
Split of parallel payment in which the payment processor splits the amount between the vendor and the customer
The biggest advantage of this revenue model is that you will be able to sell fast and earn instant revenue. This revenue model is ideal when you want to run the business in the long run.
Collecting transaction fees has become common among the people and is considered a suitable revenue generation to a significant extent. With this, you will get a small share of every transaction that is made on the processor, and you will scale up without any loss.
First look out for established multi vendor marketplace development companies. Build your own multi vendor marketplace. Select the model that you find the most suitable according to your business and make sure that you provide the consumers with the best possible solution to garner their attention. Start earning, the big way.