create a service market

"Do you have skills? Sell them. "

In this mantra, millions of freelancers have turned to the Internet and become location-independent.

That's not all.

In the past decade, service markets have emerged and divided the way we work and our lives.

For example, Airbnb, a vacation rental marketplace, has over four million hosts who have welcomed over 800 million guests. Grocery delivery marketplaces are projected to reach $ 154.34 billion in 2023.

The success of current platforms is one of the main reasons entrepreneurs want to get into the business.

In this post, I'm going to break down everything you need to know about service marketplaces and introducing a person.

What is a service marketplace?

A services marketplace is a website or app used to buy and sell services. Freelancers, individuals or companies from various industries can advertise their services and be hired by people who need their help.

The most successful service markets target a specific market and redefine how we manage our lives.

For example, Upwork and Fiverr have changed the way companies find freelancers to perform. These online marketplaces have also made remote working more accessible to millions of people around the world. In the meantime, Uber and Airbnb have disrupted our trip, creating more jobs in the gig community and giving homeowners the opportunity to make extra cash on the side.

Why should you create a service marketplace?

The service industry is lucrative. In the US alone, the consumer services economy is worth a whopping $ 9.7 trillion.

If getting a slice of this pie is not enough to tempt you, here are some of the top perks for creating a service marketplace.

You don't have to be a professional: While understanding the industry you are helping is a must, you don't have to get the job done. As a service market owner, all you need to focus on is attracting sellers and buyers. For example, you can start a personal trainer website without the skills.
It's easy to build: There are several marketplace software providers out there these days that make getting your website off the ground quick and easy. Some of the top providers are Sharetribe, Shopify with Multi-Vendor Marketplace Extension, and Arcadier.
It can be more profitable than an ecommerce marketplace: Unlike Amazon, when you provide services instead of goods, you don't have to figure out things like shipping and inventory. Lower costs mean higher commissions for you and your salespeople.
You can outsmart, outlast and outperform the competition: Sites like Upwork and Thumbtack are hugely successful as they make finding and buying services faster and cheaper. In a world where time is a scarce commodity, creating this level of comfort can give you the upper hand over your competitors.

How to create a service marketplace

Curious how to get your marketplace started? Here are the top four points to keep in mind if you want your to be successful.

Do your research to find a niche service marketplace idea

The trick to coming up with a successful service market idea is to understand the needs of sellers and buyers.

Apps like TaskRabbit and Postmates are successful because both companies figured out how to solve a problem by making selling and buying these services easier and cheaper.

Here are some tips for researching your niche to find a business idea:

Identify inefficiencies: Which tasks are time wasters? Which services in a market would help people save time?
Improve trust: Are there tasks in your niche that people want to delegate but need a layer of trust from both sides?
Costs: What services would help people save and make money if they were available online?
To overcome obstacles: What are the hurdles in your niche? How would a market remove these hurdles or make the process smoother?
Bring fragmented markets together: Do people offer certain services on places like Facebook Marketplace or Craigslist? Would a marketplace for this service improve the user experience for buyers and sellers?

Create a website for your service marketplace

Once you have an idea for your service market, the next step is to build your website.

There are a few places you can do this including:

WordPress: Buy a WordPress service marketplace theme or create your website from scratch. If you go for the latter, check out my guide to the best ecommerce website builders.
Marketplace platform: As I mentioned earlier, there are websites that are specifically made for this purpose.

Whichever option you choose, there are a few key features you need to incorporate to make sure it's a great experience for everyone involved.

Buyer and seller profiles: User profiles for both sellers and buyers help build trust and credibility. Both parties feel like they are dealing with a real person and this can help the seller build a reputable brand on the platform. You should add fields like descriptions, testimonials, certifications, and photos.
Listings and Searchability: How your listings appear in your service market depends on the type of services your users list. In addition to providing tools for presenting offers, you also want to make sure that buyers can easily browse and filter your offers.

Listings on a service market

Bookings: Regardless of what you're selling, a solid booking management system is vital to the success of your market. You want to give providers the ability to control their availability and workflow. Upwork allows users to decline appearances, and Fiverr allows you to deactivate an appearance to avoid unexpected bookings.
Payments: Another crucial factor in running a successful services market is how you receive payments from buyers and how you pay your providers. Most websites usually take a commission on every transaction and pay the seller after the withdrawal. If you're going to do the same thing, you'll need to set up a transaction flow to make sure the process is as seamless as possible.
Reviews: Reviews build trust and are important in making sure everyone feels safe on your platform. As the marketplace owner, you can use feedback to launch users who are detrimental to your platform's trust.

Reviews for services marketplace

Optimize your service marketplace for local SEO (if applicable)

Would you like to create a niche service market for your city, region or country? You need to optimize your website for local SEO.

Local search engine optimization is similar to organic search engine optimization, but it focuses on the geographic element and is aimed at a group of people from a specific area.

To increase their market share and attract users, local traffic is a top priority for anyone selling in a given market. In fact, 46 percent of Google searches are local, which means you could be leaving a lot of money on the table if you don't optimize for local SEO.

As you build your website, think about the search terms that people in your area would use to find the services you offer. For example: "Need help moving in (city)." Another thing to consider are the keywords service providers would use to find an appearance, such as "freelance writing jobs in (town)".

local SEO for your service market

While Google usually automatically assumes that people are searching for services or products in their area, it's important to include your location name in case someone is coming from out of town.

Create a marketing strategy for your online service marketplace

Below, I'm going to break down the simplest marketing considerations to think about when launching your online services marketplace.

What problem are you solving?

You can have the best marketplace with all the bells and whistles and still fail if you don't have a specific problem to solve.

You need one to stand out from the crowd and make sure you are attracting the right people to your platform.

For example, the problem Upwork solves is how to find reputable freelancers quickly.

Who is your audience?

Your marketing strategy is going to fail if you haven't taken the time to understand who your target audience is. To do this, you need to identify what demographics you are targeting, including age, background, consumption habits, and more.

Google will blog on your niche and read the comments to see what questions people are asking and how they are talking about their problems. Hop on Quora and see what questions people are asking.

For more information, do a market research survey. Send it to people on your network who are a good fit for you. You can go a step further and post your survey on relevant Facebook groups for even more feedback.

How should you expand your user base?

Your next step in your marketing strategy is to find sellers and buyers to join your market.

Fortunately, there are a few ways you can do this without investing in paid search or social media advertising. You just need to know who your target audience is and where they hang out online.

Facebook and Reddit: Find relevant groups in your niche and connect with users by answering their questions. Some groups even have self-promotion days that allow you to bring more eyeballs to your website.
Craigslist: Are your sellers already depending on platforms like Craigslist? Find them and tell them about your marketplace. This is how Airbnb initially expanded its offerings.
Link building: Look for blogs in your niche that would make sense to refer to you. Once you have a list, send a personalized email and ask for the link.
SEO: The traffic from organic searches is free and incredibly valuable. People who search for the phrases you rank on are leads who have the problem you are solving. Don't waste time researching your keywords and optimizing your website for SEO.
Paid advertising: If you have the budget for paid ads, take advantage of the different platforms. Google AdWords and Facebook Ads are very targeted and can help you reach the right people with minimal effort.

Examples of service marketplaces

Here are some of the most famous and successful marketplaces:

Upwork: Upwork is one of the largest service markets for freelancers. The website is where you can find writers, designers, web developers, and more.
Talkspace: Talkspace is an online therapy portal. You can use the website to connect with a therapist who will meet your needs right away. The marketplace makes mental health care more convenient, accessible, and affordable.
TaskRabbit: TaskRabbit is a same day service marketplaces platform. It connects its users with professionals who can help with various tasks such as furniture assembly, home repairs, or basic errands. You'll save time trying to find the right person for the job, and you'll be able to compare reviews, ratings, and prices.
Postmates: Postmates is similar to UberEats, but there is one key difference. While both apps offer food delivery from restaurants, Postmates goes a step further. With the app, you can have groceries and other goods delivered directly to your door.
VIPKid: VIPKid connects English teachers with students around the world. What sets the website apart from other marketplaces is the application process. VIPKid reviews teachers before they are allowed to work on the platform to make sure they are knowledgeable and provide a good learning experience for the children.

Conclusion

A service market can be a profitable business model if you've done your homework. Before investing in any hosting plan or platform, make sure you have a problem that your marketplace can solve.

Despite the competition you face, if you have a solid niche and market your platform to the right people, you can achieve the same level of success as the Upworks and TaskRabbits of the world.

What problem do you think a service market will solve in your industry?

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