What is C2C marketplace and how risky is starting this business - part 1

What is C2C marketplace and how risky is starting this business - part 1

Before explaining what the risks are, we have to give definition of what the marketplace is. The C2C marketplace is an online platform, in which simultaneously can be sold and bought different goods by the users. It is like the old bazar in your town years ago J with the only difference that during the purchase you are at home or in your office. By definition is an open square or place in a town where markets or public sales are held, in internet - a website or platform where users meet other users and exchange money for goods. Once we have defined the marketplace, here you can see what the main risks are in the starting of online marketplace:

1. Lack of planning and bad strategy for growth

The planning is the most important moment before the start your project. The first question you have to ask yourself is what you want to sell. Depending on the answer you will decide what kind of product to choose. Choosing a product that you know will be easier for you to establish the marketing strategy and you will communicate better with your customers. You have to decide if to choose a niche product or mass product to sell it with your own brand or as re-seller or franchise. Defining the delivery time is also important, because if you do not deliver the good to the customer at the right time, he will never come back to your site. When you have decided what you will sell note that every product has durability, I don’t  mean only the expiration date of the foods, but for example if you sell summer clothes, they won’t be convertible and very popular for buying during the winter and the opposite. For that reason when you choose the products that you sell you have to be very careful in with its durability. Other main question is the competition - if you choose a mass product which is sold in every corner, the chance of success is less than if you sell something with small competitors. But note that the unknown products are difficult to be sold and you have to prove the quality and the advantages of them.

For every product which is new for the market you have to have very good planned strategy of growth and as we will mention below marketing and advertising strategy and campaign. The best way to check the interest over new product, that you may choose for your marketplace is to try to sell few product examples in popular platforms. There you can see how many users will purchase it and for how long. Based on this you will have some results regarding the time realisation of the product on the market after purchasing from your supplier. The last important moment before the start of your project is the name of the product - you have to choose simple name, which won’t be difficult for spelling and the people easy will recognize.

 

After answering to the questions above you have to pick the right software for your project. Usually the people do not thing as the end user and pick the cheapest solution, but this is wrong decision. Before you start seeking for the suitable software you have to sit on the chair of the buyer and to answer to question what the buyer want to have in order to use your site - good looking of the site, easy content management system, good usability, quick filtering of the products, good product description, trusting the sellers, easy way of purchasing and quick delivery.   

Think on what you would use if you are the customer. After this check for the solution that have all these functionalities. In the net you will find a lot of platforms which are sold as complete solutions, but only few of them are really complete. Draw a table with the questions above, make notes, check demo versions, compare the platforms, ask you questions and after receiving positive answers to all your questions, pick the software that answer to most of them. Define the maximum budget for the project, which includes the purchase of the platform, quantity of products, which you will sell, money for marketing and ads. When you decide how much you will invest add 10% for unexpected costs. After the start during the realization in any situations DO NOT exceed the defined budget. If you start increasing the project budget at the very beginning, my advice is to stop the realisation of it! The lack of financial predictions over the spent money is worst than the lack of sales!

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