Service marketplace definition
A service marketplace is a type of online marketplace that connects service providers with customers who can book their services directly online.
A service marketplace is an online marketplace that brings together service providers with customers seeking those service providers. You can think of it like a middleman helping service providers connect with customers who want to hire them for their services.
In a service marketplace, individuals or businesses offering services can create profiles, list their skills, and set prices, while consumers can browse these profiles to find and hire service providers. This type of marketplace will typically facilitate the entire process, from discovery and communication to payment, reviews and ratings.
What are the differences between product and service marketplaces?
The primary difference between a product marketplace and a service marketplace lies in the type of offering that they facilitate. A product marketplace will focus on the sale of tangible goods, either physical or digital. In contrast, a service marketplace facilitates the sale of intangible services, this includes tasks or expertise.
Therefore, on a product marketplace, transactions typically involve the exchange of either physical or digital goods whereas, on a service marketplace, transactions typically involve the exchange of professional services.
What are some examples of product or service marketplaces
| Product marketplaces
(where users buy or sell physical or digital products) |
Service marketplaces
(where users can find or offer services) |
|---|---|
| Amazon - the “marketplace of everything”, where users buy and sell a vast array of physical and digital goods. | Upwork - a freelance platform connecting businesses with skilled freelancers for diverse projects and tasks. |
| Ebay - the online auction and shopping platform for new and used items. | TaskRabbit - an online platform connecting users with local skilled Taskers for various errands, tasks, and services. |
| Etsy - a product marketplace for hand crafted products. | Thumbtack - a marketplace facilitating connections between customers and local professionals./td> |
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Services are different from products and cannot be sold in the same way
Services and products demand different selling approaches due to inherent differences. This means that although product and service marketplaces require a similar set of essential features, there are subtle differences. For example, services are intangible and are often task based. This means that service marketplaces require features like checklists, time tracking, milestone payments and so on. In contrast, product marketplaces focus on inventory and shipping logistics, less critical in the service domain.
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