Marketplaces come in all shapes and sizes, but there are 3 main categories of marketplaces. Let's learn about them!
Now that youโve learned about how marketplaces make money and their key metrics, letโs break down some different types of marketplaces that serve different types of customers ๐
1๏ธโฃ B2C (Business-to-Consumer) marketplaces connect businesses selling products directly to consumers like yourself ๐๏ธ
For example, Amazon and Doordash are both B2C marketplaces that provide platforms for businesses and restaurants, respectively, to sell their products to consumers ๐ฑ
2๏ธโฃ P2P (Peer-to-Peer) marketplaces enable individuals to buy and sell goods and services directly to each other ๐ก
P2P marketplaces like eBay and Etsy empower regular people to engage in commerce directly, providing platforms for used goods, artisan items and more ๐
3๏ธโฃLastly, 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 ๐ญ
As an investor, itโs important to understand which of these categories a marketplace falls under, as each of them has their unique benefits and challenges ๐
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?