Types of Marketplaces

Marketplaces come in all shapes and sizes, but there are 3 main categories of marketplaces. Let's learn about them!

Now that youโ€™ve learned about how marketplaces make money and their key metrics, letโ€™s break down some different types of marketplaces that serve different types of customers ๐ŸŒ

1๏ธโƒฃ B2C (Business-to-Consumer) marketplaces connect businesses selling products directly to consumers like yourself ๐Ÿ›๏ธ

For example, Amazon and Doordash are both B2C marketplaces that provide platforms for businesses and restaurants, respectively, to sell their products to consumers ๐Ÿ“ฑ

2๏ธโƒฃ P2P (Peer-to-Peer) marketplaces enable individuals to buy and sell goods and services directly to each other ๐Ÿก

P2P marketplaces like eBay and Etsy empower regular people to engage in commerce directly, providing platforms for used goods, artisan items and more ๐Ÿ”„

3๏ธโƒฃLastly, the least common type of marketplace is the B2B (Business-to-Business) marketplace, which facilitates transactions between businesses.

Alibaba is a B2B marketplace where retailers can purchase bulk goods directly from manufacturers, streamlining the procurement process for businesses worldwide ๐Ÿญ

As an investor, itโ€™s important to understand which of these categories a marketplace falls under, as each of them has their unique benefits and challenges ๐Ÿ˜Ž

Test your knowledge

Who do B2C marketplaces connect?

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Who do P2P marketplaces connect?

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What type of marketplace is least common?

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Which type of marketplace does NOT involve any businesses selling stuff?

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What's next?

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