Preview: A Guide for Crowd Companies Members to Aid in Program Development

Jeremiah Owyang and Jaimy SzymanskiVersion 2.0 | June 2016

Collaborative Economy Use Case Playbook: Marketplace Model

Collaborative Economy: Value Chain

Each Business Model Offers Multiple Use Cases for Collaborative Economy Programs

Brand as a Service (separate playbook)• On-demand delivery • Subscription model• Rental model• On-demand services

Marketplace Model• Used goods marketplace• Service provider network

Enable a Platform (coming this July!)• Crowdfunding • Co-innovation of ideas• Makers’ partner• Crowd-based supply chain• Crowd-based marketing• Crowd-based customer care

Supplemental• AdvertisingEmerging: Autonomous World 3

“Marketplace Model” Use Cases• Used Good Marketplace: Companies facilitate the buying and re-selling

or renting of their products on an online marketplace for customers.

• Service Provider Network: A brand enables a marketplace of buyers and sellers to offer each other services -- paid, free, or bartered.

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Descriptions

Marketplace Business Model Used Goods Marketplace

Definition Companies facilitate buying and re-selling or renting of their products on an online marketplace for customers.

Purpose or Situation Goods re-sold or rented must be durable. Works well in retail, learning, vehicle sharing, and other goods industries.

Resources Required Access to a multi-vendor e-commerce platform to facilitate multiple profiles and vendor commerce within your marketplace (either working with a third-party or built internally); Innovation process internally that allows for experimentation and quick prototyping to get new marketplace ideas in front of customers; Understanding of what durable goods have longevity with customers and could be re-sold or rented on a marketplace (customer and product research needed).

Measurement • User sign-up• Products sold, leased, or rented• Transaction amount• Profit from transactions (one-time purchase/lease/rental and

multiple rentals of same item)• Product discovery• Cart abandonment• Repeat use of marketplace platform

Credits: Sharetribe; PositionIn

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Marketplace Model: Used Goods Marketplace

Implementation Process

1. Conduct customer, product, and market research to understand which of your durable goods have the potential for reselling, as well as if there is any customer demand for such a marketplace. Also consider the potential to offer services for used goods, such as cleaning services or certification (like car dealerships do).

2. Work within your innovation team, product team, customer service, marketing/advertising, and potentially IT to create a plan for: what good(s) will be on the marketplace; who will be able to sell/purchase on the marketplace; how the marketplace will be tested; what vendors will be considered; how the marketplace will be promoted; and KPIs for success in early stages to prove its feasibility in the long-term. These elements are foundation to your new business model.

3. Choose a partner (see Recommended Vendors) for your multi-vendor marketplace. Depending on the vendor, their solution may be out-of-the-box and require no IT involvement, while other vendors could require further site integration. Many vendors offer account managers.

4. Test out your marketplace, consistently seeking out customer feedback, experimenting, and iterating on its features. Assign a "marketplace manager" who acts as a community manager for marketplace relations. Track results to prove sustainability and value of the marketplace as a long-term initiative.

Credits: Sharetribe; PositionIn7

Marketplace Model: Used Goods Marketplace

Interested in the full Marketplace Model playbook? Contact Jeremiah@CrowdCompanies.com to learn more about

becoming a Crowd Companies member!