Marketplace as a Business Model of E-Commerce

Abstract

The world market of e-commerce is growing actively due to the development of such format of trade as marketplace. Its business model is only being formed, numerous factors influence its content in contradiction with each other. Its increasing popularity leads not only to new opportunities but also to new obstacles for market players, which can cast a doubt on viability of its use. The purpose of the article is to reveal what strategic decisions taken by developers and managers of marketplaces allow the creation of an effective combination of buyers’ and sellers’ aims on the platform, thus, providing mutually profitable exchange for everyone. Three approaches to the study of marketplaces have been identified based on the analysis of the empirical base consisting of secondary information: as a framework that controls the behavior of buyers and sellers in the electronic environment; as an information system; as a business model of an e-commerce. It is concluded that there are conflicting objectives with which the key participants come to the marketplace. The understanding of the business model of the marketplace can contribute to achieving consistency between the interests of sellers and buyers. Four types of marketplace business models have been identified, and they are classified into groups according to three components: value proposition, forms of revenue generation, content of the value creation process. It has been shown that the business model of a marketplace has both advantages and disadvantages, which forces market players to develop focused strategies, and at the same time marketplaces to create value propositions of at least four types: communication stimulation, business transaction automation, coordination of the market as of an intermediary in the value chain, integration of firms and process optimization. A conclusion was made about the prospects of a business model with competitive advantages created for each marketplace.