What Is The Best Strategy To Start A Service-Focused Online Marketplace? Which Comes First, Supply or Demand (And Why)?
Launching an e-commerce store in itself comes with many challenges. And when it is service oriented, additional value has to be provided in order to attract the customers. The supply and demand are both equally crucial elements. It will be a wise move to first focus on supply and arrange everything that’s under control. Only when a good supply of services is ready, will the demand start to build.
The first step to building the supply is to ensure that the prospective service providers see your platform as a promising source of revenue for them. Finding the right suppliers and convincing them to stick to you are the tricks that you need to master.
- The right way of contacting the suppliers:
The first thing to be done here is to shortlist the suppliers you would want to associate with. Once that target is set, you should split that total number which you are aiming for into first and later lots. As a general rule, the prospective suppliers in the first lot must be contacted individually. This could be done via phone calls, emails or face to face conversations.
- Convincing them to join your platform:
This is a very challenging stage in your supply creation motive. Here, you have to think from the point of view of the suppliers. Why would they choose you? What makes you a better option than your competitors? These are the kind of questions that would help you chalk out a plan where you can highlight your core values in a better way. Proposing to your suppliers is no easy task but if you are able to make tempting offers with discounts and shares, they are more likely to consider you over others.
- Making the supply appear strong and attractive:
It is only natural to not have a strong supply chain right in the beginning. After all, when you are just starting with a venture, you can’t be all-equipped in every way. So, it is ok to make things appear a little more organized than they actually are. You can undertake the initial processes yourself and do the dealings in-house so that you also get a fair idea of how things would take shape when the demand increases. So, “faking” a strong supply is not exactly harmful in any way. Instead, it would help you stay better prepared for the future deals.
Hilal Syed Umar
Hilal is currently heading the Business Development division at RNF Technologies. A passionate individual always abreast with emerging technologies, he can often be found reading up on Techcrunch & Speckyboy. When not negotiating deals with clients, he will most certainly be found playing a few strings on his guitar.