Business Advice Needed

Hello! I want to create an online marketplace platform. What are the main pros and cons of this business? I am a bit confused cause my friend told that it’s a bad idea.

Business Marketplace Startup

asked Jun 12 '18 at 14:25
11 points

1 Answer


Don’t focus on suggestions.

Depending on your requirements, you can start your online business by investing time and money in any one of the platforms.


The main pros of a marketplace include:

1. You do not usually have to worry about things like warehousing and delivery of goods.

2. Since you personally do not own any goods, you will not have to risk them sitting around while customers choose something else.

3. Monetization options are available, and using more than one of them can really be helpful.

4. Being able to showcase a larger number of different products can get you noticed, and that means a bigger customer base.


There are important cons to consider, such as:

1. Acquiring customers is your responsibility, and if you cannot do it successfully your marketplace will fall apart.

2. Everything you are offering and all the features you have to need to be ready to go when you launch, instead of adding things over time.

3. You will generally have much lower margins than a standard e-commerce site, so you have to plan your strategy carefully.

4. Because you have competition, you cannot disappoint your customers – they will simply go elsewhere if you do.

Also, you can take a look at this article

answered Jun 18 '18 at 07:56
1 point

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