Rise in digital marketplace platform due to Covid
It has been four months since the pandemic shutdown. Our lives have changed forever. Online grocery shopping has finally taken off big time. While some marketplaces such as AirBnb have reported a drop in revenue, others have thrived. With remote working in full swing, businesses have started looking inwards with an innovation angle to realize a new standard in efficiency.
Take for example Volkswagen AG, launched a marketplace that connects third party software providers with their manufacturing plant. This should significantly reduce the hassle and the time spent on the software procurement process. Transparency factor of a marketplace will foster a healthy partner community, one where prices are driven by pure supply-demand economics and ultimately resulting in higher operational standards for Volkswagen.
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With its search platform Google knows where the online traffic is at before anyone does. So competing with Amazon’s commerce platform was bound to happen. I am sure Amazon’s explosive growth during Covid times have made Google executives think hard and fast on their shopping service. Their ecommerce marketplace pales in comparison to Amazon’s marketplace platform. Competing with a giant will require many different strategic initiatives. And nothing is more organic in business than wooing your competitor’s partners and customers. “The search giant said it will eliminate the fees it charges retailers to let people buy directly through the Google Shopping service”
Ecommerce was always the reality and in the past has seen an year over year growth closer to 20%. Online sales grew by 76% in June 2020. Digital marketplaces offer a trusted platform to transact with a remote merchant who you will never meet in person and have never had any prior knowledge of how their product and/or services are. Covid has clearly changed our buying patterns and the demand for more trustworthy marketplaces like Amazon is greater than ever in the consumer and corporate space alike.
IdyaFlow Plus is an enterprise marketplace software which can help build and ecommerce marketplace software in a matter of days.