Two-sided marketplaces are some of the most profitable businesses today, but they aren’t without their own set of challenges like every enterprise. For one, software businesses can be stressful to maintain when you don’t use the right technology. Like all app-driven businesses, the more customers you acquire, the faster you will have to scale. As a result, those that aren’t equipped with a proven monetization model are bound to fail.
Chicken and egg: which came first?
One of the most pressing concerns for entrepreneurs who found two-sided marketplaces is which party to attract first. Present data tells us that buyers and sellers will flock promising business software, but when starting a brand such as this, who should business leaders initially reach out to?
It will be challenging to acquire a sea of consumers when an online platform barely has anything to consume, but sellers won’t want to sell with you if there isn’t a proven demand for their products, too.
Think of a marketplace as a convenience store.
If a potential customer enters a store and is surrounded by empty shelves, there’s nothing to survey and check out. As a result, he leaves in an instant.
Sellers, on the other hand, are programmed to be eager and patient for customers to arrive. Because suppliers shoulder the burden on making a profit, they’re most likely to approach selling platforms as short-term risks. Consumers turn to establishments to meet needs, and if a business is unable to do so, they look for what they need elsewhere.
In other words, business leaders looking to build a two-sided software outfit need to invest in partnerships with sellers first. After all is said and done, service providers and sellers work hand in hand to attract better the market they work hard for.
Algorithms, Curations, Listings—Bubble does them all.
There are various factors that contribute to the growth of a two-sided marketplace, and one of them is its UI. These apps are a dime a dozen, but how functional and convenient they are to navigate provides customers a desirable experience.
Here are two curation approaches entrepreneurs can look at when developing a two-sided marketplace:
Although algorithms are a common thing for sorting arrays of listings, primarily basing what’s presented to customers on their consumer behavior is a wise move. For cases like these, the suggestions a customer sees is dependent on their prior preferences. For instance, if one continually searches for the best ceramic plates, it’s highly likely that they’ll keep seeing plate recommendations, utensils, and other similar categories on their feed.
This is often the best strategy for shopping platforms.
While two-sided marketplaces that rely on manual curation still employ algorithms, making an effort to compile top listings manually helps add value to your customers’ experience. For example, you can round up the best ocean views if your platform hosts vacation spaces and the top employers if your platform accommodates job postings. By providing curations, you help hastens the decision-making process of your customers. Consequently, you eliminate the need to filter underperforming listings, as well.
You can build a two-sided marketplace with Bubble.
Of all the no-code platforms available today, bubble.io is arguably the best option for entrepreneurs looking to penetrate the two-sided marketplace industry.
Here are a few pointers to take note of:
1. Narrow your niche
It’s tempting to develop software that pleases as many people as possible. But unless you’re building a shopping mall, it’s best to narrow your niche. The more defined your target market is, the easier it will be for you to build trust.
2. Know both parties you cater to
Developing a two-sided marketplace means serving two parties. Study the trends in their industry and acquaint yourself with their consumer behaviors. This better enables you to create a space that speaks directly to your consumers. For instance, if you’re building an app that, say, connects homeowners and tenants to plumbers and construction workers, develop an app that’s most likely to perform well with their devices. Are most of your audience members iOS patrons or Android folks? These things matter.
Fortunately, Bubble allows for dynamic hybrid apps users can conveniently use at all times.
3. Begin with an MVP
Building a full-featured native app can take forever, and trends are evolving at much faster paces today. In other words, time is a commodity you will never be able to take back. Use your efforts wisely, and test your market first. Just because you’re willing to wait doesn’t mean the market can, too.
Times like these demand a shortened path from idea to market. A minimum viable product lets you figure out what works and what doesn’t. It also shows you how promising your need is in the long run. Turn to a trusted no-code agency, if you must. We also have a step-by-step guide on how you can build an MVP for free
4. Be ready for adjustments.
It’s understandable why business leaders are protective of their vision, but the market we serve today is a fickle beast. Your proposed solutions now may not be what your customers look for or genuinely need. Be open to change, and accept that you will have to change course many times in business. Because Bubble optimizes a drag-and-drop interface, making the necessary adjustments to your app shouldn’t be challenging. In fact, you can improve what you need to in a matter of seconds!
Building two-sided marketplaces requires a tad more research and a whole lot of work, but with Bubble by your side, developing software that bridges parties together helps make easy profit a feasible undertaking.
Ready to build your own marketplace? Check out our free courses that will help you get started.
Are you thinking of building a web app today? Give us a call, and we’ll make it happen together!