Brought to you by Hokodo
There are many different business models that a founder can choose for their B2B marketplace. Sometimes, a marketplace might start out with one type of business model and then move to a different model in order to increase revenue, attract new customers or grow the business. The commission model – where the marketplace takes a commission on each transaction (shocker) – is popular because it is often the most lucrative marketplace model. When done right, these platforms own the end-to-end transaction, from discovery through to payment and beyond, adding value at every step. According to Sharetribe, these marketplaces take an average of 10-30% of the transaction value for their commission.
But in taking such a high cut of the transaction value, commission marketplaces put themselves at greater risk of every marketplace founder’s biggest fear: disintermediation.
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