Marketplace University

What is a horizontal marketplace?

A horizontal marketplace is one that serves many different types of customers across industries. The most popular horizontal marketplace for products is Amazon, appropriately termed “The Everything Store”.

Paris Mielke

March 21, 2022

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1 min

What is a horizontal marketplace?

Opposite to a vertical marketplace that serves one industry or customer niche, a horizontal marketplace is one that serves many different types of customers across industries. The most popular horizontal marketplace for products is Amazon, appropriately termed “The Everything Store”.

Learn more about other marketplace terminology below:

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Horizontal Marketplaces

Key benefits

diversification of customers leads to less risk of market fluctuation

potential for cross-industry collaboration

one-stop-shop for consumers

Key drawbacks

by targeting too many industry segments right away, you may be unable to dominate any of them

more complex to market & scale as you have to serve more types of customers with unique needs

suffers high attrition as the platform can usually only control the discovery process (not workflow automation solutions)

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