Online Marketplace
Business Plan Sample
Download The Multi Vendor Marketplace Business Plan Sample in PDF
Fill the Form to Download Online Marketplace Business Plan Example
Fill the Form to Download Online Marketplace Business Plan Example
As the name implies, a marketplace is a two-sided business model connecting potential buyers and sellers within one platform to facilitate sales, purchases, and exchanges.
There are many companies operating as online marketplaces, such as Amazon, eBay, Airbnb, and Uber.
Online marketplaces are reshaping the way things are purchased online, both in the B2C and B2B industries. From large-scale consumer markets to B2B niche sectors, they thrive in every market today.
Writing a business plan is important for any type of company, but it’s especially crucial when building a marketplace. Though every market is unique, we strongly recommend following a clear structure vetted by our professional business plan writers.
Having a strong and clear marketplace business plan will maximize your chances of raising capital. This document lays out your goals and strategies for achieving them, and it can be used as a roadmap to help keep your business on track.
Fill the Form to Download Online Marketplace Business Plan Example
Marketplace Business Model Examples
$3.23 trillion in goods were sold in 2021 on online marketplaces. This is where Amazon is a leader.
Typically, online marketplaces operate on commission, subscription, or listing fees. However, there are many more revenue models. Each has its own benefits and difficulties.
There are 6 different marketplace business models that entrepreneurs can use today:
1. Commission Revenue Model
A commission model charges a fee for every transaction. This is the most popular online marketplace business model. Typically, the marketplace charges a percentage of the customer’s payment to the supplier.
Amazon, eBay, Etsy, or Airbnb are examples. They all charge a commission per transaction and have sellers offering a variety of products.
2. Subscription Model
A subscription model is a revenue model where users pay a regular fee to access a platform.
Using an online marketplace with a subscription model allows suppliers to find new clients, or access a database of potential clients.
Subscription models are good for online marketplaces with limited resources, or whose business logic excludes transactions between users.
3. Listing fee Model
In the listing fee model, online marketplaces charge sellers for posting ads on the platform. Listing marketplaces are popular because they drive a lot of traffic to the site, allowing providers to gain more exposure on their listings.
To justify their listing fees, these sites must drive high volumes of traffic. Sites such as Trulia.com and Realtor.com use this business model.
4. Freemium Model
A freemium marketplace allows both buyers and sellers to use it for free. The business is monetized by offering additional features, premium subscriptions, or cross-selling other products and services.
The idea behind this model is that your free platform gets users hooked, so they can’t resist paying for your premium features.
Unsplash is a great example of a stock photo provider.
5. Featured listings and ads Model
A featured listings and ads model is an online marketplace revenue model in which sellers purchase advertising privileges to enhance their visibility.
The seller or service provider pays to have their listing displayed higher than others or to be at the top of their category.
eBay’s classifieds division uses this method. It’s free to list and sell on their platform, but users pay a flat fee if they want their offering to appear first.
6. Lead Fee Model
A lead fee is somewhere between a listing fee and a commission model.
Typically, lead fee models involve customers posting requests on a site and providers bidding for these requests. You only pay lead fees when you are put in contact with a potential customer: you don’t pay a listing fee.
Thumbtack, a B2C marketplace for local professionals, like plumbers and guitar teachers, is one recent example.
Marketplace Business Plan Template
- Executive Summary
- Financial Highlights
- Startup Summary
- Industry at a Glance
- Projected Industry Growth
- Key External Drivers
- SWOT Analysis
- Marketing Plan
- Management Summary
- Financial Indicators
- Revenue Forecast
1. Executive Summary
EPlace Solutions will be an innovative online e-commerce portal offering a variety of products to consumers throughout the globe. Founded by Mr. John Jones, a seasoned business visionary with an eye towards profit and achievement, the organization is set to enter the market during 2023.
The timing of market entry is nothing less than exceptional as consumers throughout the globe have begun releasing pent-up spending that was held as a result of the global recession.
Online shopping is at an all-time high with new consumer mindsets calling for them to shop for the types of deals and bargains that will be so much a part of the EPlace Solutions business model.
While the market has a great deal of potential and is filled with incredible opportunities, in order to capitalize on them, a strong infusion of working capital must be acquired.
Working capital will be used in a variety of areas including marketing, logistics, insurance, management as well as the financing of the day-to-day operations of a business of this type. The founder projects needing a working capital sum of 100K for his venture with repayment of this sum coming from profits made through the website.
To read the full executive summary, click here to download the PDF
Useful Resource: How to write an executive summary for a business plan
2. Financial Highlights
The financial highlights for EPlace Solutions are shown in the chart above. The organization projects to have strong growth trends over the course of the next five years.
3. Startup Summary
4. Industry at a Glance
5. Projected Industry Growth
In the 10 years to 2016, industry value added, which measures the E-Commerce and Online Auctions industry’s contribution to the US economy, is expected to increase by an average annual rate of 11.0%, while US GDP is forecast to rise by an average annual rate of 2.0% over this same period.
This indicates that the industry is in the growth phase of its life cycle, as its growth rate outpaces GDP over a 10-year period. Rising industry participation and new forms of businesses also indicate a growing industry.
6. Key External Drivers
Disposable income is a deciding factor in determining the quantity and quality of online purchases. Changes in income can occur because of movements in wages, government benefits, unemployment and tax rates and returns on assets.
7. SWOT Analysis
The following is an analysis of the SWOT analysis of the EPlace Solutions business model as well as the opportunities and threats present in the marketplace.
- Strengths: Knowledge of the founder. EPlace Solutions founder Mr. John Jones is a seasoned business professional who is well attuned to the e-commerce and Internet-driven marketplace. His broad skill set will be invaluable during all phases of business growth and evolution.
- Weaknesses: Lack of funding. Lack of funding is the primary weakness for EPlace Solutions as all of the other components of the business model and approach are extremely sound.
- Opportunities: Increase in online activity among minorities. Minorities are beginning to turn to the Internet for their shopping needs in large quantities. Research conducted via IBISworld.com shows that appealing to this segment of the market will be one of the keys to success for companies like EPlace Solutions that are looking for long-term sustainability
- Threats: Larger competitors. Larger competitors such as Ebay. com and Amazon.com pose a threat as they are already firmly entrenched in the marketplace and have acquired a large share of the online shopping market.
8. Marketing Plan
For marketing, EPlace Solutions primarily relies on the Internet. A user-friendly website will be developed utilizing the latest design and online technologies as part of the planned marketing efforts.
The website will also feature SEO (Search Engine Optimization), which will allow it to rank higher with popular search engines such as Yahoo.com and Google.com. EPlace Solutions intends to use Facebook.com and Twitter.com extensively throughout each calendar year as part of its marketing model and approach.
9. Management Summary
10. Financial Indicators
11. Revenue Forecast
Break-Even Analysis
Profit and Loss Statement
Pro tips: Learn how to make a profit and loss statement with our free to download income statement templates to make a stunning one for you .
Projected Cash Flow
Projected Balance Sheet
Our free real sample business plans make it easy to write a business plan that looks as polished and professional as this one. If you need help in writing a business plan, you can hire our professional business plan writing services to save you time and secure funding.
Below Let’s review an online marketplace business plan sample that can help you create your own business plan or download the free online marketplace business plan sample in PDF here.
Other Sample Business Plans
Does your online marketplace LLC need a business plan?
Whenever you decide that an LLC is right for your online marketplace business, you should create a business plan (even though it is not required), so you know what you will do and how.
Recommended: Read our free guide to learn how to form an LLC in your state, or choose wise business plans to make LLC registration simple.
Download Online Marketplace Business Plan Example
We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.
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