Building a successful two-way marketplace is no small feat. Companies like Etsy, Airbnb, and TaskRabbit have managed to nail the two-way marketplace landscape by creating systems that are both functional and mutually beneficial. Ridesharing apps like Uber and Lyft are among some of the most successful, as they serve one simple purpose- to connect people who need rides with drivers nearby. Two-way marketplaces operate on a supply and demand basis, and can only truly thrive if there is a demand for a particular good or service.
Here are 4 fundamental steps to build a two-way marketplace.
1. Choose Your Industry
Choosing the right industry in which you want to build a two-step marketplace is essential to your success. The easiest way to do this is by picking an industry within your realm of expertise. By doing this, you will have a better understanding of any missing pieces in your niche, and you will be able to identify areas you can improve on and perfect your idea. For instance, if you were to create a talent app, you should have some background knowledge in that field so that you can make educated choices when building your app. Choosing an industry in which you have a certain level of expertise is crucial to the success of your two-sided marketplace.
2. Identify A Demand
Identifying an area in which there is a demand is another important step in creating a two-sided marketplace. The reason apps like Uber and Lyft are so wildly successful is because they are created around the demand of people needing to get where they’re going. People are always going to need rides, which is why it is rare for apps like this to fail. Identifying if there is a demand for your idea before taking your next steps will help you make sure you are making educated decisions and will set you up for success down the road.
3. Build A Following
Once you have chosen your industry and identified a demand, your next step would be to establish and grow a following. After all, the success of any two-sided marketplace depends on a solid community of people, so make sure you are putting a lot of thought into this aspect of your endeavor. Your community should feel valued and important, so make sure to ask for feedback regularly in order to effectively optimize your two-sided marketplace.
4. Create Content
While many people overlook content creation, it can actually be an important part of the success of your two-sided marketplace. Creating engaging and educational content can really aid in your growth, and can also help draw an audience. Creating content around a certain topic can help drive interest to your two-sided marketplace and make the launching process easier. Creating content can also make the launching process feel more natural, and you will be able to build your community more organically.