Internet business is developing rapidly. It exists in various forms. Mostly, it is presented by different online shops that have the same working algorithm as usual ones: you come in, you pick some products that you need, you put them into your basket, pay and leave. Perhaps, if you really liked the products, you may come again. Or find another shop that offers the same products at a cheaper price, a better service or some prettier decorations (in the case of the online shop – a more appealing web design). However, there is one more type of online business that is highly profitable, not so widespread, and requires a significant advertising campaign and nothing more. It’s called marketplaces.
An online marketplace is similar to a usual market: there are sellers who offer their commodity, and there are customers who go to the market in order to buy something. And, of course, there is a market owner, who gets paid for the place he gives to the sellers. The same principle works on the Internet. However, marketplaces on the Internet have a much better chance to succeed and turn their owner into a billionaire. Let’s take a look at the Top 5 marketplaces that are prominent all over the world.
Founded back in 1994, Amazon brought its owner Jeff Bezos US $ 19.285 billion in 2016 and will bring even more in 2017. This marketplace is famous for selling products of the highest quality, produced by Amazon or other prominent and beloved brands, recognized all over the world. The project got extremely successful because the idea was fresh not only in America but in the whole world. Having gained trust in the USA, the marketplace got upgraded aiming at Europe and Asia, which allowed it to get more profit. Its target is to advertise the project as the place where you can find the best of the best and this strategy has proved to be working in the USA on the highest level.
American company eBay offers services of an Internet auction. It was founded in 1995 and the idea at the time was, once again, totally impressive. In 2016 the marketplace succeeded in raising US $ 23.84 billion. However, its activities have fallen significantly. Despite that, eBay still remains one of the best marketplaces in the world and connects billions of clients worldwide. The success of eBay 20 years ago can be explained by the very idea of establishing an auction on the Internet. It made people think that buying things on the online auction has risen their chances for saving ups. The idea of saving money will always grant you success.
Alibaba Group got CN¥364.450 billion in 2016, becoming much more profitable than Amazon and eBay altogether. The secret of this company’s success is that being the largest retailer in the world, they offer the widest range of products imaginable. The price range is various: products are aimed at customers with different incomes, which secures the fact that a lot of people will want to use Alibaba services. The marketplace Alibaba presents is universal: every person from every nook of the world can find in here something useful, which established its success.
There are a lot of online marketplaces that work worldwide. However, only several of them work on-demand (which means with an immediate reaction). One of the most popular on-demand marketplaces is Uber. This is a startup launched in 2009 that brought US $ 5.5 billion of income in 2016. Uber is a great example that not only commodities can be a significant part of a marketplace but also services. Uber succeeded due to facilitating people’s lives. It has upgraded to the point when you are able not only to order a taxi but also to order food or even a helicopter. The possibilities of Uber became not limited.
This is another example of a marketplace that doesn’t offer any commodities and still became viral. Its revenue was US $ 1.492 billion in 2015 which proves that services, especially in terms of tourism, are highly important for people from all over the world. This marketplace is completely free for its users and enables them to plan their trip to any part of the world imaginary. It’s supported purely by advertising hotels, restaurants, etc. which turned out to be really significant for its users: in this way, they find out about the places that are definitely worth visiting. Also, it can boast about having the most memorable logo among those mentioned before: it’s an owl that symbolizes wisdom in fairy tales: you ask it for advice if you really need some help.