Building 2 Sided Marketplace

Providers customers and the marketplace entrepreneur.

Building 2 sided marketplace.

Gumroad is a two sided marketplace for digital goods. The company has already paid out over 200 million to creators. The platform doesn t own the supply chain of value but rather controls the network of third party producers of value and the consumers coming to the platform to consume that value. The purpose of a two sided marketplace platform is to facilitate interaction between providers and customers.

A two sided marketplace lets parties of producers and consumers interact with one another and creates network effects between them through a platform intermediary. The platform also has other features that help sellers such as giving the store a blog and customer analytics. Companies like ebay in ecommerce facebook in social media advertising uber in transportation industry and upwork in gig economy and dating apps are all examples of two sided marketplaces which serve the interests of multiple audiences like manufacturers wholesalers. Trying to target a market opportunity that is too big or take on a competitor head on is a recipe for failure.

You can build a two sided marketplace regardless of the industry you are in. Probably the most important overall strategy for building a two sided marketplace is that you must start with a niche. If you try to appeal to everyone you will end up appealing to no one. The service allows creators to set up a digital store and collect payments.

How we built a two sided marketplace at clockwise software a software development company has a handful of benefits including the chance to work in various spheres. The platform s business model is to take a percentage of the transacted value for connecting producers and consumers. Two sided marketplaces are those that bring two user groups together to help them get network benefits from each other and generate economic value.