Over the past year, COAX has been building over a dozen online marketplaces for clients. We have also counseled over a hundred aspiring entrepreneurs, advising them on the best approaches for building the marketplace that best fits their needs. This blog post is a short summary of the most relevant challenges and questions raised by entrepreneurs and CTOs just like you.
Stage 0: Online marketplace business models 101.
You may be surprised, but for many entrepreneurs, the difficulties of launching a marketplace are often not related to technical difficulties at all. A beginner entrepreneur can’t always answer precisely how they are going to make money. Also, why should customers choose them? And what makes their offer so unique from their ten other competitors? Before getting interested in building a marketplace, it is crucial to validate your business model.
We strongly encourage you to check Why Custom eCommerce Websites Fail before reading any further. It may save you some time, money, and confusion.