Peer-to-Peer (P2P) Marketplaces — Everything you need to know!
Last week we discussed the scope of eCommerce business in Singapore. And in this blog, we will be digging about a specific eCommerce marketplace category — Peer-to-Peer (P2P) Marketplaces.
Communities of people have been habitual to share the use of assets for thousands of years. And then, the emergence of the Internet made it easier for asset owners and seekers to find each other. This sort of concept can also be referred to as the sharing economy or peer economy.
Here are some key insights about the sharing economy (Source: Investopedia)
- The sharing economy involves short-term peer-to-peer transactions to share the use of idle assets and services or to facilitate collaboration.
- The sharing economy often involves some type of online platform that connects buyers and sellers.
- The sharing economy is rapidly growing and evolving but faces significant challenges in the form of regulatory uncertainty and concerns about abuses.
A few factors that have led to the development of the sharing economy are:
- Global economic crisis;
- Minimalism — shift in people’s attitudes towards sharing services and goods with others.
What is a Peer-to-Peer Marketplace?
A peer-to-peer marketplace is a phenomenal business model that falls under the eCommerce umbrella. It is an online platform that connects (i) people who want to sell/rent any kind of product or service and, (ii) people who need that product or service.
People who are artists, mechanics, car renters, or booksellers all can become vendors via a P2P marketplace.
Popular Peer-to-Peer Marketplaces
You landed on this blog probably because you already have some interest in the p2p business. So, what were the best sources of inspiration if you’ve decided to create your own peer-to-peer marketplace? Of course, the world’s leading p2p marketplaces.
Let’s take a look at the top peer-to-peer marketplaces (Source: Steel Kiwi)
- Airbnb, a US-based peer-to-peer marketplace platform that allows hosts to share their places with travelers. Airbnb is valued at $75 billion.
- Etsy, an eCommerce marketplace for handmade items as well as art & craft supplies. In the third quarter of 2020, Etsy’s revenue was $451.5 million which is 128.1% year-over-year.
- Amazon, a multi-vendor eCommerce marketplace with thousands of listings from independent software vendors. As of February 2021, Amazon's worth is around $1.7 trillion.
- TaskRabbit is an American online marketplace that matches freelance labor with local demand. It allows consumers to find immediate help with everyday tasks, including cleaning, moving, delivery, and handyman work.
- Upwork, formerly known as Elance-oDesk, is a work marketplace that connects businesses with independent talent or freelancers. Upwork’s revenue in the third quarter of 2020 reached $96.7 million, representing 24% year-over-year growth.
- Uber with its $72 billion valuation, is considered the most successful marketplace in the market for on-demand taxi services and one of the fastest-growing businesses in the world.
Types of Peer-to-Peer Marketplaces
The types of peer-to-peer marketplaces can be categorized as follows:
By Items: The P2P marketplaces are primarily classified on the basis of items sold and purchased on the website. For instance, there could be a peer-to-peer marketplace for,
- Properties (Airbnb)
- Products (eBay)
- Service & Skills (TaskRabbit)
- Ride Sharing (BlaBlaCar)
- Education (Skillshare)
- Loans (Kiva)
- Money Lending (Kickstarter)
By Users: Different platforms have different participants. There are three types of platforms as distinguished by participants: customer-to-customer (C2C), business-to-customer (B2C), and business-to-business (B2B).
By Approach: There are generally four different types of approaches for peer-to-peer marketplace management,
- Unmanaged Marketplaces like Etsy, that don’t invest in quality assurance, background investigations, or feedback analysis.
- Lightly Managed Marketplaces like Shutterstock, that do invest in quality control, but to a limited extent.
- Fully Managed Marketplaces like Opendoor, that monitor access to the market, supply, operations, and transactions.
- Decentralized Marketplaces like Openbazaar (that that uses Bitcoin), that invest heavily in infrastructure to build reliable solutions to orchestrate the exchange of goods and services.
How to build a Peer-to-Peer (P2P) Marketplace?
The popular custom eCommerce development solution — Yo!Kart, pre-determined the rise of the sharing economy. This agile eCommerce platform lets you customize and scale your marketplace just the way you want.
What makes Yo!Kart an Optimum Platform to Start a P2P eCommerce Marketplace?
- Product Catalog System
- Import/Export Features
- Tax Management
- Inventory Tracking
- MSN Language Translator
- Upselling & Cross-Selling Features
- Separate Vendor Store
- Product Reviews & Ratings
- Cart Abandonment Alerts
- Easy Checkout Process
- PayPal Payout
- Multiple Payment Options
- ShipStation For Real-Time Shipping
- 20+ Pre-Integrated Payment Gateways
- Advanced Order Management
- eWallet Management
- Smart Recommendations
- Refund/Return Management
- Social Media Sharing
- Robust Reporting & Statistics
- Discount Coupon & Offers
- PWA Compliant
- Facebook Pixel
Yo!Kart has all the features and functionalities that make it a perfect P2P eCommerce platform. You can launch your marketplace instantly by opting for their GoQuick package for just $999. On the other hand, if you want a custom-built marketplace then GoCustom is the package that will suit you better.
Yo!Kart is trusted by 1000+ eCommerce businesses across different niches such as Fashion & Apparel, Liquor Marketplace, Groceries, B2B Wholesale, Diamond B2B Trading, and more. You might find lesser client reviews for Yo!Kart but, you will hardly find any negative review. That is the specialty of this standalone eCommerce solution.
If you want to build an online peer-to-peer (P2P) marketplace, get in touch with Yo!Kart experts!