Enhancing Distribution Businesses with Services Marketplaces

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Nov 17, 2022
Enhancing Distribution Businesses with Services Marketplaces


Traditional product marketplaces have long been a cornerstone of e-commerce, with Amazon leading the way in revolutionizing online purchasing. While these marketplaces have predominantly catered to B2C transactions, the emergence of B2B marketplaces in recent years has been noteworthy. Amazon's foray into the B2B space with Amazon Business, along with industry-specific B2B marketplaces like Digi-Key Electronics, Home Depot Pro, and Zoro.com, have demonstrated the potential in this sector. In addition to product marketplaces, services-driven marketplaces, such as Upwork, have gained traction, providing a platform for individuals and companies to offer their expertise. This article delves into the benefits of services marketplaces for distribution businesses and emphasizes the importance of supporting technology.

The Benefits of Services Marketplaces for Distribution Businesses

As businesses increasingly opt for online purchases, it is vital for distributors to differentiate themselves and foster customer loyalty. Introducing a services marketplace enables distributors to offer a comprehensive end-to-end solution.

In a traditional e-commerce distribution model, customers visit a distributor's website to find the desired products by searching product numbers or names. After adding the products to their cart and checking out, the items are shipped to them. However, customers often require additional services to complete their projects, such as assistance from systems or product integrators, contractors, or other service providers. By incorporating a services marketplace, distributors can establish a network of such service providers, enabling customers to access these services before checking out from the distributor's website. This closed-loop buying cycle ensures a seamless customer journey and allows distributors to track the entire process without the risk of losing customers after they leave the site.

Service Marketplace Model

Setting up a Services Marketplace

While services marketplaces share similarities with product marketplaces as middlemen connecting sellers and buyers, some key differences must be considered.

Maintaining the end-to-end customer journey is the primary goal of a services marketplace. Therefore, it is crucial to have a platform that enables the distributor to monitor all communication between customers and service providers. As the distributor owns the customer relationship, being the central point of contact ensures the long-term maintenance of that relationship.

Selecting the right service providers for the marketplace is crucial. Since the distributor is the main point of contact for customers, it is essential to include only companies that instill confidence in delivering quality services. Establishing key performance indicators (KPIs) with service providers and ensuring they meet their commitments will contribute to customer satisfaction and retention.

Efficient quotation processes are essential. While some services may offer immediate pricing at checkout, more complex integrations may require a quote based on specific requirements. The platform should facilitate seamless and rapid communication between the service provider and customer to deliver fast and efficient quotes.

Facilitating milestone-based payments is another key consideration. Many service engagements involve payment based on the achievement of specific milestones. The chosen platform must enable the tracking of these milestones and provide a seamless payment process for customers once milestones are met.


Integrating a services marketplace into a distribution business provides numerous advantages in today's increasingly digital marketplace. It enables distributors to offer a complete end-to-end solution, enhancing customer loyalty and satisfaction. By supporting the customer journey, monitoring communications, selecting reliable service providers, streamlining quotation processes, and facilitating milestone-based payments, distributors can create a seamless experience for their customers. Embracing the opportunities presented by services marketplaces can position distribution businesses for sustained success in a competitive e-commerce landscape.

At MarketPush, we support a number of different marketplace models. Do you want to learn more about how a services marketplace can benefit your company? Reach out to MarketPush at sales@marketpush.com or visit our website at www.marketpush.com.