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Its a problem that has needed solving for centuries. How to get people into the marketplace?

After coming up with a brilliant idea for a marketplace, the next thing to do is to build it.

The good news is starting a marketplace has gotten a lot easier. Whether by using an online platform created by a SaaS (software-as-a-service) provider or taking the do-it-yourself method, there are some necessary practices that every entrepreneur needs to know.

For newbies in the industry, it is important to follow appropriate tips and guidelines that are essential for getting on the right track. Here are some steps to follow.

Never forget the powerful story

It is what the marketplace is all about.

There needs to be a compelling reason for people to use the marketplace. A lot of Founders get too excited on the technical aspects and focus too much on adding all sorts of features. They forgot why they built the platform in the first place. Find the main value proposition and stick to it.

Ideas to help stay focussed on the story is to create blogs that regularly offers high quality content, tips, and useful information that keep people coming back to the website.

Also Read: Born into poverty in rural China, this guy made an app that gives free WiFi, got 800M users and raised US$52M

Tell a story, remind users of what the team is about and why they should support this specific company.

Narrow the market and geographic focus

Often time people think by reaching out to as many customers as possible is the best way find success. The reality is, it is better to focus on a smaller group of people. As the saying goes, ‘don’t spread the butter too thin”.

The reason is because by targeting a mass audience, there may not be enough suppliers to meet the demands. Choose a niche market and go vertical, pick a specific geographic location and expand once a solid ground has been established.

Grow a supply base first

In order for a marketplace to function, there needs to be enough merchants offering goods and services to fulfill the needs from the buyers. The wise thing to do is to prioritize building up supply in the marketplace first.

Make sure to acquire high-quality merchants to ensure the inventory is ready for to make transactions. Having a strong supply in place not only increases credibility, but it generates higher interaction between buyers and sellers.

Be diligent in acquiring users

Getting merchants listed on the marketplace is important, but it is just half the answer.

Ultimately the goal is to ensure buyers make transactions on the marketplace to generate revenue. Be creative in attracting both sellers and buyers through effective marketing efforts. Utilize the social media channels and come up with an active and resourceful blog that can draw-in users in.

To speed up the growth of the marketplaces, have a stellar email marketing campaign, participate in conferences and events, incentive the business model and promote referrals from existing users.

Build trust in your brand

The next thing to do is to convince people they have the right reasons for choosing the marketplace. It is essential to build a good reputation and there are few ways to do so.

Many marketplaces website have a rating and review system installed. This will help people get an idea of what it is like to use the marketplace. Marketplace websites should also have the feature to create users profile; painting a better picture of the product, personal story and reputation.

The more positive reviews and ratings posted from the registered users, the higher the credibility in the pool of marketplaces.

Always ready to face the unexpected and stick to your original plan while making necessary changes as you go in building your marketplace.

Also Read: The 3 biggest challenges faced by fashion and beauty startups

There are more detailed steps and practices to help in the effort of launching an online marketplace successfully. But by following these five simple steps, entrepreneurs will more easily establish themselves in the ever growing industry of online marketplaces.
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Kenneth Low is CEO and co-founder of Arcadier, a SaaS company that powers next generation marketplace ideas. You can follow Arcadier on Twitter, Facebook, and LinkedIn for more news and updates.

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