BUSINESS MODEL OF ONLINE CLASSIFIED MARKETPLACE

● Sign up Payment

If you are a beginner then introducing sign up fees is very important for your marketplace platform. It is a simple and flat payment. Sign up payment is one of the most direct online business models. Even the sellers find the signup fee sensible. Sign up fee is usually affordable and it is convincing for sellers as well because paying a small amount for joining is not a bad deal.

● Subscription Business Model

The business model which has the subscription feature with a repeated payment option is considered to be the king of a marketplace platform. It is also called the ultimate business model of the marketplace because the repeated fees are the lifeline for any business. The main reason behind this is subscription makes the large payment affordable by splitting it into smaller ones.

● Product Listing Fees

● Selling Payment

You know it and everyone knows it, selling payment or selling fees is the obvious marketplace business model online. It is one of the most difficult business models as well because it’s very complicated to implement this model correctly. The success of your business is very much dependent on this feature. There are three types of payment flows in the selling fees module, direct payments, aggregated payments, and split payments.

● Transaction fees

Transaction fees or payment processing fees are the type of business model in which the customers have to pay for the procedure of doing the transaction as well. This sounds a bit less convincing to the customers but this business model will take your revenue to the next level. The transaction fees should be very less, for example, 1% of the payment. But don’t forget the 1% will also create a lot of difference if you are dealing with millions of transactions.

● Sponsorship Products and Promotion

Promoting different products and sponsoring profiles is also a great way to improve your online marketplace. With the help of sponsorship products and promotions, you can help your vendors in providing extra exposure. There are different forms of promotion of products on your marketplace. This business model can make your marketplace more attractive.

● Pay Per Lead

If your marketplace is service-based then the business model of pay per lead or charging lead fees might be a good option for you. In this model, your vendors are allowed to browse the potential deals but they will have to pay if they want to view the deals in detail. There are two options in the Pay Per the Lead model, charge to each lead and charge to successful deals.

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