We are seeing an increase in the platform economy. As a result, there are constantly more online platforms around us, ranging from Werkspot to Airbnb. There are online platforms of all shapes and sizes, and more are being launched than you think. With our software, platform providers are launching around 20 per month. But what is an online platform? Read on to learn about the characteristics of an online platform.
Many people think that one of the characteristics of an online platform is that it is always successful. Unfortunately, that is not true. Many platforms need time to become successful. For example, it took SnappCar 5 years to generate a turnover of one million.
SnappCar encountered a problem with one of the key features of an online platform. They discovered how difficult it is to get the right supply and demand on the platform at the same time. At SnappCar, the biggest challenge was finding local car rental providers. Without rental providers, they may have users, but those users would not be able to find a car.
Sufficient Supply and Demand
The most important success characteristic of an online platform is having sufficient supply and demand. The number of suppliers must be proportionate to the number of users. This ratio varies by sector. Suppliers only bring their offerings if there is sufficient demand, and users only come if there is sufficient supply. What do you focus on first? If you get sufficient volume and the right ratio of supply and demand, then your platform meets one of the most critical success characteristics of online platforms.
Make it Reliable
Doing business on your platform is different from doing business with that recognized car dealer in your area. Users do not yet know the suppliers on your platform. An important success characteristic of an online platform is that the suppliers appear reliable. For this reason, platforms add various verification methods, such as quality checks, and often have a review system in which users can evaluate each other when they do business.
Ensure a Good Revenue Model
One of the most important success characteristics of an online platform is the revenue model. You may run a platform as a hobby for a few months because you enjoy it, but without income, the fun will quickly wear off. The revenue model is, therefore, one of the most critical success characteristics of an online platform. A good platform has a revenue model. Read on to learn about all the different ones.
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