When we talk about e-commerce platform, companies like Amazon, OLX, Ebay comes to mind, but who is the biggest player in the world, this may sound strange and you might be surprised to know that this position is held by the Chinese e-commerce company Taobao.
The world is full of surprises and so is Facebook. It is not only limited to social media anymore when you look at its jobs and marketplace platform you will see that it can give a tough competition to the existing e-commerce players in the market.
The online market is being ruled by some of the global giants in the e-commerce, especially in recent years. They operate mainly in two different models, one of them being Managed marketplace and the other model is called Open.
In an open e-commerce model such as OLX and EBAY the marketplace plays a role of a platform of communication between sellers and buyers in order for them to talk over the terms and conditions along with the price to make the sale and purchase.
Controversially, in a managed marketplace like Amazon and Flipkart in India, the marketplace controls almost all the transactions that take place.
The marketplace acts in a way that turns the sellers into just suppliers that indirectly makes the marketplace itself a retailer.
You have products to sell or purchase and the transactions will be much more profitable when the platform for sale and purchase just acts as a mediary not as a retailer, which actually happens in an open marketplace.
But the issue with this concept is TRUST. When a customer makes a purchase, it is the duty of a retailer to deliver the advertised product in the promised condition.
But when customers get a different or worst case scenario bad quality product they develop a mistrust about the platform.
This makes the managed marketplace is quite bigger when compared to the open marketplace because customers feel safer within a controlled environment.
The existence of open marketplace is even rarer in India market because people have just started getting used to online shopping.
An ideal open marketplace must be able to have some qualities such as: It must provide the means to build up sellers, advertising platform through showcasing catalogues, a place for showing the price and configuration of the products, mode of payment, logistic connections and above all abilities to build customer trust.
With almost 2.7 billion active users, Facebook has established trust among its users, and it has started new ventures like Jobs portal and even an open marketplace.
These platforms are easily accessible and has almost all the qualities that an open marketplace must have, and it has started making a difference in Indian market.
The social media keeps touching new heights with every passing year. By looking at the figures you will see that India has nearly 200 million people who choose to shop online.
Apart from that there is an even bigger sum of people (around 400 million) who uses Whatsapp regularly. A company like Facebook Inc. That owns Facebook, instagram and Whatsapp, is capitalizing new opportunities every day by updating old and launching new features as often as possible.
Providing services when they are demanded is the key to success for any business and while more and more people are leaning towards social media and online shopping, companies like Google and Facebook will keep growing
So, Yes, Facebook may grow bigger in e-commerce and probably will be a huge contender in the e-commerce sector in the near future.