{"id":17090,"date":"2023-04-20T10:21:59","date_gmt":"2023-04-20T08:21:59","guid":{"rendered":"https:\/\/mindset.swiss\/?p=17090"},"modified":"2024-04-25T18:35:08","modified_gmt":"2024-04-25T16:35:08","slug":"how-to-avoid-disintermediation-in-marketplace-business","status":"publish","type":"post","link":"https:\/\/mindset.swiss\/en\/blog\/marketplaces\/starting-a-marketplace\/how-to-avoid-disintermediation-in-marketplace-business\/","title":{"rendered":"How to Avoid Disintermediation in Marketplace Business?"},"content":{"rendered":"\n<p class=\"has-text-align-center wp-block-paragraph\">As a marketplace owner, one of your top priorities is ensuring that your business stays relevant in a constantly changing landscape. In the world of marketplace business, disintermediation can be a challenge for many marketplace businesses, but with the right strategies, you can stay ahead of the game.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is Disintermediation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Disintermediation is the process when a marketplace\u2019s intermediaries, such as suppliers or service providers, are bypassed by the end users. If you are unable to provide sufficient value, users may seek ways to bypass your payment system to evade your fees. It can poses a challenge for many marketplace founders, sometimes leading to the collapse of marketplaces.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, how can marketplace businesses avoid disintermediation? There are some ways to avoid disintermediation and continue providing value to both buyers and sellers.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Providing Two-Sided Value in the Transaction<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In a two-sided marketplace, it is important to provide value for both the provider and the customer. This means going above and beyond to create a positive experience for both parties. For individual providers, security is a key concern, and the marketplace can provide this by acting as a trusted middleman or offering insurance. Guaranteeing services or offering refunds for dissatisfied customers can also be effective.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For sellers, the marketplace can mitigate the risk of disputes by handling them or leaving it to the payment provider. Reputation systems can provide security for both parties and also help providers sell more. In service marketplaces, online payment can provide security for providers. For professional service providers, tools and other value-added services can be offered to improve their business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, the best approach will depend on the particular concept and whether it deals with high or low-value items, selling products, renting them out, or providing services, and if the marketplace is consumer-to-consumer (C2C), business-to-consumer (B2C), or business-to-business (B2B).<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Communication Strategies<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Effective communication is crucial for maintaining trust and building lasting relationships with buyers and sellers. Make sure to keep lines of communication open and transparent, and to respond promptly to any questions or concerns.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One approach is to keep an open communication line with your users. Remind them that commissions are what keep the site running, and if people bypass it, your site may disappear. However, appealing to users\u2019 good nature may not always work. You can also take a more draconian approach and remind users that those who bypass the system will be banned. But this may not be the best way to build a sense of community.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Another strategy is to make it harder for people to exchange contact information before a transaction takes place. Platforms like Airbnb remove contact details like email addresses and phone numbers from private messages between users. However, it\u2019s important to note that these limitations can be circumvented, and excessive communication barriers can create friction on your site and annoy users.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Offer Providers a Stake in Your Online Business<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s important to have a good relationship with your providers. If you try to extract too much value without giving back enough, your business will ultimately fail. To be successful, your marketplace needs a loyal group of providers who feel that their best interests align with yours. One way to achieve this is by offering providers a stake in your business, which can be done through a provider-owned cooperative.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The cooperative model has already been successful for some companies, such as Stocksy, a cooperative-owned stock photo marketplace that has lured many photographers away from competitors. If a cooperative isn\u2019t the right fit for your business, you can still issue small amounts of shares to providers or experiment with new technology like cryptocurrency. By finding ways to align your goals with your providers\u2019, you\u2019ll be more likely to build a strong and successful marketplace.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">To successfully own the purchase process, it is important to ensure that both the customer and provider receive enough value from the transaction. By focusing on providing value in the transaction, implementing effective communication strategies, and offering providers a stake in your business, you can mitigate this risk and continue to grow and thrive in a competitive marketplace.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>If you\u2019re looking for a partner to help you build and grow your marketplace, look no further than us! Our team of experts has years of experience helping marketplace owners like you achieve success. Contact us today at hello@mindset.swiss or schedule a consultation with our expert to learn more.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a marketplace owner, one of your top priorities is ensuring that your business stays relevant in a constantly changing landscape. In the world of marketplace business, disintermediation can be a challenge for many marketplace businesses, but with the right strategies, you can stay ahead of the game. What is Disintermediation? Disintermediation is the process [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18748,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[202,196],"tags":[],"class_list":["post-17090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketplaces","category-starting-a-marketplace"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.9 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Avoid Disintermediation in Marketplace Business? - Mindset AG<\/title>\n<meta name=\"description\" content=\"As a marketplace owner, one of your top priorities is ensuring that your business stays relevant in a constantly changing landscape. 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