Entrepreneurs are highly concentrating on business to business ventures. Multiple opportunities are in front of every business to enhance their individual sector by creating a niche segment. Gone are those days where we depend completely on the brick and mortar style for every business function. Contemporary business looks for online options to see the market and establish their impeccable presence in the competitive zone. Looking at the success of companies like Alibaba, Amazon, and online portals, native entrepreneurs are eager to take their business to the next level.
Its time setting about business segments and what option can rightly be implemented to make the business grow without any operational interruption. B2B business is multiplying in different levels and comparatively better to the B2C market. We have strong footmarks of Google’s branding concept and how it could really set a trend of selling products from one business to another business. This really publishes a great result of business models and it definitely suits the present business types for which categorization of models according to the business can create success.
Significant characteristics of the business model
Understanding the business model definitely needs the characteristics which can be influential for business development and also pave the way for generating revenue.
To build your multi-vendor marketplace platform, having an association with the majority of the stakeholders is fundamental. They would place huge orders to keep your supply chain continuous and also can develop the relationship between manufacturers and suppliers.
One of the prime factors for taking decisions is resource availability. The business needs to vision the choices which can evoke the market opportunity. Only when the resources are abundant, supply becomes uninterrupted and it can have a flow of the process.
Creating a unique identity in the competitive marketplace guarantees healthy rapport among the suppliers, sellers, and buyers. This can provide a tangible result in customer satisfaction through stakeholder relationships.
Beyond satisfaction, the business should look out for delighting the customers through effective multi-vendor marketplace platform options and ensuring the customers’ credentials safety.
Tapping the profit zones by exploring the best business model is the fundamental of any multi-vendor option. Creating a customer interactive platform can give you a significant impact on revenue generation.
Online gives you the privilege of setting up different kinds of business opportunities and here through online distribution, suppliers creating channels to business the business is a major concept. The supplier being a monopolistic here has complete control over many factors and especially when it comes to price determination, buyers play a strong role. Alongside the supplier should also note that they are demanded highly by the needs of their products. In this business model, the tangible result is loyalty and goodwill which act as a prerogative factor for business growth.
Various companies like Amazon, Cisco, IBM are the greatest examples of this business to business model especially supplier-oriented concepts. These companies are known to be the giants of the online marketplace where they have a multiproduct sale to reach customers and extend their business growth.
This is another model constituting buyers-oriented concepts. This is the main target for big companies having to top purchasing power and look out for bulk purchases. Online portals are exclusively established for these kinds of businesses so that they get quotations from multiple sellers and after a careful selection, analysis, buyers deal with sellers. Cost-effective, affordable, and model is efficient to source better quotes from suppliers.
Companies have adopted the technological support to enhance their marketplace opportunity where they create a platform for parties’ network expansion, partnership building and also make huge profit deals. Buyers make use of this platform to their project for a nominal cost.
This model is a concept of intermediary oriented which gives the privileges to both buyers and sellers for frequent communication and to have enough transactions between each other. Maintenance of buyers’ and sellers’ details would be a significant factor to make profitable deals. This kind of e-commerce platform is more appreciative than the above two models because E-Commerce giant Alibaba seems to be incorporating this intermediary oriented marketplace option.
Vertical and horizontal marketplaces
This determines the growth of the business and how the business owners choose the market option. If the owner bids vertical growth then the owner needs to concentrate only on its segment. This can drastically bring down the supply chain, inventory, and procurement cost.
Horizontal marketplace access as a bridge to connect both parties of various industries in order to buy products and services.
What fits your business?
Every business has its unique approach and the specificity of the business model to the respective business needs to be understood here.
- Buyer- oriented models provide a clear option to the buyers to set up the business website, call for the bits, and quote the respective products and services.
- Supplier oriented marketplace has various effective channels for sales to create a log of buyers in order to expand the business visibility and reach
- Intermediary oriented marketplace works between both parties’ buyers and sellers and according to their conversation or transaction the profit determines
Every model is very clear with its purpose and the business owner needs to have the knowledge of incorporating the exact model by matching their business specifications. Identifying the role in the initial stage of the model would be very convenient.