Top Online Marketplace Ideas For Entrepreneurs In 2020
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The world of online marketing is ever-changing, dynamic, innovative and constantly moving towards progress. You can also start your online marketplace but all you need is some great online marketplace ideas, to begin with. From the past few years, huge growth has been witnessed in the number of online marketplaces. E-commerce sales reached $130 billion by the end of the year 2018, accounting for 10 % of the total sales.
NRF (National Retail Federation) predicted that online marketplaces are only going to grow further in the upcoming years.
So, if you want to start an online marketplace, then this is the time for you to begin. Because having an online marketplace in the current scenario is very beneficial. Global e-commerce sales are expected to account for $4.5 trillion by 2021, which shows that stepping into an e-commerce business is very profitable in the long run.
The topmost companies of the world are moving their businesses online. A huge number of customers are getting involved in more and more online interactions. What do you think the reason is?
The reason is the scope of an online marketplace which is a growing trend that can not be ignored.
Speaking of the trends, let us have a look at a report by Statista. It shows the worldwide retail sales made by online marketplaces, predicting their further growth. This report shows that online shopping is one of the most popular online activities worldwide.
If you are an entrepreneur, interested in the outlook of the collaborative economy or you are having an eCommerce business idea, this article is a must-read for you. While going through this article, you will find the top marketplace ideas in 2020. Let’s begin!
Online Marketplace Ideas For Furniture Goods
The furniture retail industry has always been an offline entity. But over the past few years, the scenario got completely changed. And the furniture marketplace emerged as a growing and successful online marketplace.
With the changing dynamics, growing brand consciousness, and increased demand for online furniture goods among millennials, the online furniture marketplace is a great idea for a successful business.
- By the end of the year 2018, the global furniture marketplace accounted for a revenue of $304,270 million. (Statista)
- The global e-commerce furniture sales are predicted to grow at an average rate of 10% annually during the years 2019 to 2023. It will hold up a market volume of $289.3 billion by the end of the year 2023. (Statista)
- China holds the place as the largest online furniture marketplace retailer with revenue of $80 billion.
Top Players Of Online Furniture Marketplace
The top players of the online furniture marketplace, Wayfair and Amazon, together occupy a total of 63% of online furniture sales. CORT, Ashley, IKEA Systems, La-Z-Boy, Kimball, and Furniture Dealer also stand out as the key retailers of the furniture e-commerce business.
- Wayfair is the biggest online retailer of furniture. According to the data analytics firm 101data, Wayfair leads the global online furniture marketplace at a 33.4% market share. Wayfair is easily customizable and provides exactly what the customers needs.
- Amazon, being the top global online marketplace also stands as the second biggest online furniture marketplace at a 29.7% market share of online furniture sales. Amazon offers a huge variety of budget-friendly and quality furniture.
- There is a constantly growing demand for furniture goods. Furniture having multi-function abilities like stylish yet space-saving design that provides maximum storage facility and is also pocket-friendly prices are also in demand. And it is the main force that is driving the online furniture marketplace growth rate over the past few years.
- As Amazon enters the home furnishing sector, a significant sale has been achieved with its mattresses sale. The online retailers of furniture are constantly trying to drive the attention of the audience with the help of enhanced features. Brands like Casper and Leesa are successfully gaining the attention of customers. As a result, they are expanding their businesses by providing a captive list of products, a realistic structure of price, and a creative nomination of the mattress.
- According to the global online furniture market forecast report (2020-2024), the global online furniture market size is projected to grow at a CAGR of 26% with a revenue of $84.25 billion. The YOY (Year Over Year) rate of growth for the online furniture marketplace 2020 is estimated to be 18.99%, by the end of 2024.
- Technology has again proved to be a helping hand for the online furniture industry. Wayfair, the giant online furniture marketplace is implementing new technologies to enhance the online experience of the users on its mobile app. With the contribution of AR (Augmented Reality), Wayfair offers its users a 3D image of the products on its website.
Challenges and Solutions
No buyer will like to get involved in a long delivery procedure. Because of super fast overnight delivery systems offered by giants like Alibaba and Amazon. But with the help of a real-time shipping calculator, the cost involved in the shipment of heavy items that influence the online furniture marketplace can be used to win over the faith of customers.
Remarkable challenges are witnessed by online furniture marketplaces. During the return of an item as there are chances that the furniture may get damaged during transportation. But with the help of a proper return and refund policy, these challenges can be overcome.
Online Marketplace Ideas For Grocery Delivery
Online Grocery Marketplace is a huge and one of the fastest-growing online marketplaces. Online grocery businesses have a lot of opportunities for retailers and brands. Over the past few years, the online grocery marketplace has witnessed a significant rise in its popularity. And is anticipated to attain a remarkable share in revenue by 2023.
The target audience of the online grocery marketplace is mainly the young ones and metropolitan households. Because they are lacking time and seek convenience, as they rapidly adopt new technologies.
- By the end of 2025, the global online grocery delivery marketplace is projected to be one of the fastest growing online marketplace reaching $84460 million in sales.
- In the U.S. alone, the online grocery sales by the end of 2018 were $23.9 billion.
- China is the top player in online grocery worldwide. China had its sales equal to $50.9 billion in 2018 and is projected to get 4x increased by 2023. This clearly shows the immense reach and opportunities in the underlying marketplace.
- By the end of 2020, the US online grocery sales are projected to grow 18.2% to $19.89 billion and by 2021 it will reach $38.16 billion. The data clearly implies the growing chances of success in the online grocery marketplace.
Prominent Players Of The Online Grocery Marketplace
Once again, the largest global online marketplace, Amazon, holds the largest market share of the US grocery e-commerce sales in 2019 with a 32.7% market share.
Walmart, Target, and Kroger are also in the race challenging Amazon, through their click and collect capabilities and increasing up their sales.
Challenges and Solution
- In the case of an online grocery marketplace, the operational costs involved in the shipment and delivery procedures generally keeps rising. The reason is the dissatisfaction of customers and perishable products. This is where the revenue of the marketplace is used. Operation losses can be easily recovered by implementing a proper business model and smart management strategies.
- One major challenge experienced by an online grocery store is the mismanagement of inventory. It often results in poor customer experience because of the absence of products. You can implement a business model that offers effective inventory management features. It will simplify the management of inventory and user experience as well.
Online Marketplace Ideas For Liquor And Wine
Due to the changing tendencies of customers online, they are more likely to involve themselves in online interactions. According to the US department of commerce, more than $230 billion are spent by the consumers on alcoholic beverages per year. This shows the demand for liquor is generally high among the audience. And there will be A high growth in the online liquor business in the coming years.
The main buyers of the online liquor marketplace are the millennials living in metropolitan cities. They are generally familiar with the use of technology and value convenience.
- In the US alone, online liquor sales increased up to $1.7 billion in the year 2017. The sales went on a rise in the year 2018, reaching 253.8 billion. By this data, it can be said that the demand for an online liquor marketplace is genuinely high.
- The potential of the online liquor industry is yet to be discovered as there are fewer competitors in the field.
- This is the right time to put up a step in the liquor industry because the online sales of liquor and wine had a 4.9% increase in its sales.
Key Players In the Online Liquor and Wine Marketplace
- Drizly is one of the biggest online liquor app-based marketplaces. It serves in more than 70 cities in the US and Canada. The total market share of the key player in the online liquor industry is 19.2%.
- The other e-commerce giants in the online liquor industry are Wine.com, Minibar, and Amazon. Wine.com has thrived sales by 20% in the last 12 months and attained an annual revenue of $100 billion. Amazon has also recently begun its journey in the growing liquor industry.
Challenges and Solutions
- Federal and state laws or regulations on alcohol are one of the biggest challenges faced by the online liquor industry. Because it halts the procedure of alcohol delivery. Maintaining the compliance of laws and the management of liquor is a complicated process. To protect your online liquor business from restrictions, get a proper license issued by the government to attain a clean delivery process.
- Sometimes users may violate the user age check by providing false information. Because it is easy to do so. Age gating has emerged as a challenge for the online liquor industry. You can ask the customer for their ID proofs while buying liquor online, which will represent their correct age. This way you can be confirmed about their eligibility for buying alcohol online.
- It is hard for the liquor industry to maintain the appropriate temperature for the liquor during shipments. You can deal with the delivery partner to delay the delivery if the temperature isn’t suitable.
Marketplace Ideas For Health And Fitness
In 2020, there is almost nothing a person can’t find online. Even health and fitness training sessions. You heard it right, just a few years back there was no existence of the health and fitness industry on the web. But a massive growth has been recorded in the online fitness marketplace in the last few years and there’s a lot of scope for you! With the spread of COVID-19, most of the fitness clubs moved online. As a result, online fitness clubs have enabled flexibility in the fitness industry.
When it comes to the point of fitness, technology has smashed the barriers which were restricted to bricks and mortar fitness studios. That is the point when the online fitness industry started blooming.
The increased demand for health assessment among the generation has increased the demand for an online marketplace for fitness.
- In the year 2020, the fitness industry is projected to account for $2190 million in revenue sales. (India)
- In the year 2018, the global online marketplace for fitness accounted for an annual sale of $2.4 billion.
- The global online fitness marketplace is projected to grow at a CAGR of 21.1% during the forecast period of 2019-2026.
- The increased number of downloads for online fitness apps like Nike Training Club and Asana Rebel shows the high demand in the online health and fitness industry.
Key Players In The Online Fitness Marketplace
Gymnut, TrainHeroic, SugarWOD, Cult, and Fiverr are the prominent key players that rule the online fitness marketplace. With the increased demand for products in the online fitness industry, new players are entering the field. An online fitness service named Obe has witnessed massive growth and is streaming 14 live classes per day. Which costs $27 monthly and $199 annually. Cult-favorite HIIT studio Orange Theory, for example, is sharing a free 30-minute workout session on its website on a regular basis.
Challenges and Solutions
- With a sudden shift in the brick and mortar fitness industry model, both small and even the big fitness studios like Flywheel are affected. A financial hit to the fitness business has been experienced due to COVID-19. The biggest challenge among the fitness studio is to maintain the membership of customers and stop them from canceling it. By implementing online/virtual fitness sessions and by creating an interactive home fitness system for their respective users, the fitness industry can regain its customers and financial loss.
Online Marketplace Ideas For Doctor Visits
According to the Quantum Metric, there has been a significant growth of 52% in the sales of online health products. After the emergence of COVID-19, online shoppers for health products has increased by 8.8%.
As the coronavirus continues to spread across the different parts of the world, there is an increased demand for health care advisors and medical help. The online marketplace for healthcare services is in limelight. The main target audience of the global online health care provider marketplace is those who are seeking medical help for their health conditions.
With the help of telehealth, the gap between health care systems and people is being filled in. Amidst the coronavirus, the online marketplace for healthcare services is playing the leading role in connecting people with physicians through a virtual window.
- Due to excessive demand for healthcare systems and doctors in the time period of the pandemic, building up an online marketplace for healthcare providers is a great option, to begin with. As the business of healthcare policies has shown a growth rate of more than 30% in comparison to the month of February.
- According to the data by Civicscience, a significant growth rate (18 % to 30% ) has been recorded among the number of US adults intended to use telemedicine.
- According to ATA, more than 50% of the health care services in the US will be conducted by means of teleservice.
- On a global level, the telemedicine sector recorded $45.5 billion in sales in 2019. Which is now projected to reach $175.5 billion by the end of the year 2026. As a result, opening a huge number of business opportunities in the field of telemedicine.
- The Telemedicine Market is expected to exceed more than US$ 60.44 Billion by 2024 at a CAGR of 18.50% in the given forecast period.
Top Players In Telehealth and Telemedicine Market
The telehealth sector has evolved a lot in the past few years. And has now become a crucial part of the health care industry. The companies leading the telehealth market involves Teladoc Health, Doctor on Demand, Nutrimedy, MDLIVE, Aerotel Medical Systems Ltd., InTouch Technologies, AMD Global Telemedicine, American Well, MeMD, etc.
Challenges And Solutions
Teleservice also has some limitations. As the doctors and medical professionals using the online medium to connect with the patients can not test them for COVID-19. But on the other hand, the risk of exposure to those who have the virus can be reduced to a great extent by means of teleservice. Teleservice can help to keep the virus-free patient away from the hospital and at the same time providing them medical assistance. Therefore, the teleservice online marketplace idea can be considered as the top e-commerce business idea in the current scenario.
In conclusion, the extensive scope of eCommerce is undeniable even while writing out this post the laptop I used was brought on an online marketplace. The major part of the world is inclined towards online shopping, which shows that e-commerce is the future. Having online marketplace ideas in the current scenario can be more beneficial than ever.
Here at CedCommerce, we progressively work towards helping you in creating an online marketplace. If you look forward to creating an online marketplace, Cedcommerce can make it a lot easier for you to operate an online marketplace. CedCommerce offers marketplace solutions for online grocery marketplace, online liquor and wine marketplace, personal or health care marketplace, etc by which you can easily create your own marketplace.
So if you are that business-minded entrepreneur with a great online marketplace idea or even if you do not have one, we have collected the top online marketplace ideas for you, so what are you waiting for!