Features of online platform
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.
- A platform is focused on a specific target audience or sector.
- There are three stakeholders involved in a platform: 1. The platform provider, who explores the platform and often has the role of director and decides what goes on the platform. 2. The platform supplier, who offers services or products on the platform. 3. The platform participant, who wishes to use the supplier's services or products.
- A platform usually brings supply and demand together. Suppliers publish their offerings on the platform, and users/participants take advantage of them.
- A platform consists of several components, such as a marketplace where offerings are published, various contact options, revenue models, and a member administration system with all users (suppliers and participants).
- Platforms are scalable. An online platform can be expanded quickly, so it simply grows with the number of users and the offerings they publish. The network on which the platform runs must be upgraded regularly to efficiently handle all the traffic from the growing number of users.
- In addition, functions can be added to a platform to continuously improve its functionality.
- An online platform can be open or closed. An open platform is accessible to everyone, and offerings can be searched without logging in. With a closed platform, users must first register and, in some cases, pay to search the offerings. This is the case with many dating sites and streaming services.
Platforms Don't Become Successful Automatically
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.
Characteristics of Online Platforms That Ensure Success
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.