Is Selling in Marketplaces Profitable?

Experts predict that global online markets would account for 40% of the global online retail market, indicating that online marketplaces are a profitable venture. At first glance, it may seem that selling in markets is less profitable than selling in your own store, as platforms such as eBay and Amazon charge an average commission of 15% per sale. However, there are many benefits to this revenue model. The biggest advantage is that suppliers are not charged anything before they get any market value. This is attractive to suppliers, and is why the most popular marketplace platforms, such as Airbnb, Etsy, eBay, Fiverr, TaskRabbit and Uber, use commissions as their main business model. With the commission model, a market receives money from every transaction it processes on the platform. This can be done by charging a percentage of each offer or a flat fee to the seller, buyer or both. This is one of the most widespread models and is mainly used in product markets and rarely in service markets. It is possible to make a little extra money with your market without raising fees or adding extra costs by selling your own Non-Fungible Tokens (NFTs). To ensure the profitability of your market, you should create a business on your platform and simplify transactions. This business model configures your online marketplace so that each merchant or customer pays a membership fee to sell or buy on the online marketplace. Alternatively, you can operate with one of the proven, reliable and existing Internet market business models. With this model, merchants can often publish their products or services for free on an online marketplace but must pay a fee to promote their ad to a viable audience. It turns out that selling in markets might make more financial sense than selling in your own store when you're still a young business. The basic rule is that the owner or administrator of the market receives a prior agreement on a part of the transaction that is carried out on an Internet platform. This means that you will earn a commission for every transaction that is made on your online marketplace. Additionally, it equals lower spending on marketing, retargeting and social media campaigns to activate market users since they are already spending money on a membership. You need to have both an online store and marketplace because there are things you can do with an online store that you simply can't do in a marketplace. Furthermore, if you were already planning to sell your own NFTs, creating a marketplace will allow you two sources of income since you sell and provide a service.