Launching a successful two-sided marketplace requires overcoming the “chicken and egg problem” of attracting customers with limited supply and acquiring supply with only a few customers. In this blog post, we will guide you through the process of building the initial supply for your marketplace. By focusing on signing up providers and fostering a robust base of products or services, you can establish a strong foundation before inviting customers. Let’s take a closer look at the strategies you can use to grow your market effectively!
How to find your first providers?
1. Contact Providers Active in Other Marketplaces
Leverage existing forums and marketplaces relevant to your niche. Reach out to individuals already listing their offerings and invite them to join your platform. Learn from Airbnb’s early success in engaging apartment owners on Craigslist and convince them to list on your platform as well.
2. Utilize Google, Business Directories, and Offline Aggregators
Conduct targeted searches using search engines, business directories, and offline aggregators specific to the profession you’re targeting. Engage with relevant industry events and establish connections with potential providers. Follow in Etsy’s footsteps and build relationships with influential artists and crafters through offline channels.
3. Tap into Online Forums, Networks, and Facebook Groups
Explore online forums, networks, and social media groups where your potential providers gather. Engage with these communities and creatively identify the right channels to connect with providers. SlideShare played a crucial role in helping Clarity find early providers, and you too can leverage platforms specific to your niche.
How to Launch Your Marketplace and Make an Impact?
To convince providers to join your platform in the absence of customers, a personalized approach is vital. Showcase your platform’s unique value proposition, offer hands-on assistance, and address concerns. Create exclusivity by implementing a thorough vetting process and communicate the potential buyer base. Provide immediate value through single-player modes, demonstrating the benefits of joining your marketplace, even without a large customer base yet.
How to “create” your own supply?
To jumpstart your platform’s growth, employ clever strategies to “fake” supply. Consider creating the initial inventory yourself, paying for inventory, or aggregating existing inventory. Remember to transition towards a sustainable model as your marketplace gains traction and fosters engagement.
As you conclude your journey towards building a thriving marketplace, it is crucial to recognize the significance of focusing on one side of your platform first. Starting with providers and creating the initial supply sets a solid foundation before opening your platform to customers. Now that you understand the importance of this approach, it’s time to take action.
Are you eager to explore how our solution can revolutionize your company? Take the next step by booking an appointment with our seasoned experts, Michael or Patrick. With over 10 years of experience in solving complex business challenges and digitizing solutions, they are well-equipped to guide you towards transformative outcomes.
Schedule your appointment today and embark on a journey of growth and innovation. Contact us now!