moonchild
VIP Contributor
Any business that involves two side, will face a cold start problem, now think of a market place platform that let people buy and sell, you need to have buyers that trust your brand enough to doll out money and you also need sellers that trust your brand enough to list their product, because of this it has turned to chicken and egg problem, because you get confused on who will have to come first.
To solve this problem you have to fill in the sellers side, you can do this by providing some kind of incentives to the initial sellers or you offer them a very low commission, if none of that is forth coming you can go ahead and make the marketplace busy by reposting what sellers have already post on other platforms, after solving this problem.
The next line of action is, solving the buyers side, you can do this by offering pay on delivery and also reduce the price to the point of attracting them.
After you do this enough, you'll find out that you become the go to guy in that marketplace niche and you'll be able to scale your business from there by increasing prices and getting more vendors.
Most marketplace lose money for some years before becoming profitable.
To solve this problem you have to fill in the sellers side, you can do this by providing some kind of incentives to the initial sellers or you offer them a very low commission, if none of that is forth coming you can go ahead and make the marketplace busy by reposting what sellers have already post on other platforms, after solving this problem.
The next line of action is, solving the buyers side, you can do this by offering pay on delivery and also reduce the price to the point of attracting them.
After you do this enough, you'll find out that you become the go to guy in that marketplace niche and you'll be able to scale your business from there by increasing prices and getting more vendors.
Most marketplace lose money for some years before becoming profitable.
