Toptal

In today’s mobile era of the internet, we tend to shop online more often than ever before. We can attribute it to the fact that it’s infinitely easier to compare products from different sellers online, often from the comfort of our sofa. As a result, we tend to shop at online marketplaces that connect various providers of goods and services with potential clients.

eCommerce businesses have a much easier time acquiring customers, and clients can find online retail shops or service providers with the best reviews, without much risk of getting tricked into a bad deal.

Marketplace Business Model

In this new world of centralized sales, we can distinguish between two main approaches to conducting business.

Marketplaces act either as brokers, charging providers a commission for their services, or as final sellers, adding their own markup to vendor pricing.

Marketplace Types Broker

In a broker system, the marketplace operates as

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