By AlanW
While it may seem straightforward for buyers and sellers to complete a transaction once they connect on a platform, it's the activities that happen outside the typical transaction flow that can be costly. Modern marketplaces are increasingly stepping in to reduce these hidden transaction costs, which include the time and effort spent in finding, contacting, and vetting suppliers, as well as the back-and-forth of emails, phone calls, and meetings.
Take, for example, chartering a bus. Traditionally, you would have to manually search for different suppliers, reach out to them for quotes, and handle a lot of back-and-forth communications to finalise the deal. However, platforms like Bus.com allow you to do this entirely online, with self-service features that massively reduce the transaction cost for both the buyer and the seller. This streamlined process is what makes the marketplace valuable: the reduction of time, effort, and friction in completing a transaction.
In today's competitive landscape, reducing transaction costs is crucial for increasing productivity and ensuring the long-term success of a B2B marketplace.
Work with Alan W
Illustrator: Lisa Williams (Instagram: @artist_llw)
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