GLOSSARY
Marketplace model
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A marketplace model is a business approach where a platform connects buyers and sellers to facilitate transactions.
What is a Marketplace Model?
A marketplace model brings together buyers and sellers on a platform to conduct transactions, enabling a wide range of products or services to be offered.
Why it Matters
Marketplace models create opportunities for businesses to reach a larger audience, provide convenience to customers, and generate revenue through transaction fees or commissions.
Examples of Marketplace Models
- Amazon - connects buyers and sellers of various products
- Airbnb - facilitates short-term accommodation rentals
- Upwork - links freelancers with clients for projects
Related Concepts
Key concepts include network effects, trust and safety mechanisms, and scalability to handle a growing user base.