“Failure is the stepping stone to success”. Avoiding mistakes is impossible for a human being but learning from our mistakes makes once thought as impossible things also possible. When it comes to the world of online Marketplaces, there have been many examples of success and failure. A Marketplace is an ecosystem that needs to be regulated and managed to ensure high standards of quality always. Unfortunately there have been marketplaces which couldn’t fulfill the same and gave a lesson to other marketplace of what not do. We are going to see few of the lessons in this blog.
Lesson 1: Customer Satisfaction Is a Must
All the big brands have found out the key to their success is in a great customer buying experience. A good customer experience drives happy customers. And these happy customers then attract more customers through word of mouth, social sharing buying experiences, which attracts more sellers to marketplace, increasing products choices for customers, and driving down costs to meet the competition, and competing on great after sale service. And this leads to more delighted happy customers. The cycle goes on and on. To cope up with it entire Marketplace team should put efforts every day on improving customer satisfaction and thus improving marketplace sales.
Lesson 2: Funding Can’t Guarantee Business
Homejoy – A service marketplace platform which connected house cleaners with its customers started in 2012 which saw a very quick growth from 2012 to 2014, closing a $38 million round of funding in 2013 led by Google Ventures. Unfortunately the company closed down in July 2015 because Homejoy’s cleaners were independent contractors and they could not be legally trained on how to clean a house. This led Homejoy unable to manage cleaning process and thus gave bad services and lost customer trust. This situation killed such a promising business with a market estimated at €400-800 billion. Homejoy Marketplace learned funding can’t guarantee business the hard way.
Lesson 3: Good Buying Experience, Service and Trust Building
A main objective for any marketplace should be creating trust with customers through transparency and regulation. A Marketplace operator builds trust by providing a good buying experience that provides all relevant information about products, seller’s details, resolves any issues encountered with sellers if needed, seller ratings, returns policy, seller and buyer chatting system and more. For Homejoy, the inability to ensure consistent service using the above features led to a poor customer experience and poor trust building – To have a marketplace built with all the above trust building features then log on to www.exlcart.com.