Website Design: The Brokerage Business Model

Bringing Retailers and Consumers Together

The marketplace provides a way for companies to sell their products to other businesses or consumers, or in some cases – both. The brokerage business model web design revolves around third parties (brokers) who get buyers and sellers together to perform transactions. A broker will charge a fee to one or all of the parties for handling the sales transaction. Brokers can wear many hats. They can connect consumers with other consumers and businesses with other businesses. Businesses are often looking to connect with retailers. The brokerage business model can be used in a variety of situations such as online stores, auctions and shopping malls. It can also include something as simple as placing an online classified advertisement.

Online Marketplaces

An example of a business to business brokerage business model is an online marketplace that targets large numbers of commercial sellers and buyers. A business to business focused brokerage model could possibly be aimed at preparing and maintaining software, managing transactions, creating a network or keeping catalogs current.

Aggregators

Another example of a brokerage business model can be aimed at the use of aggregators. The goal of an aggregator is to bring groups of consumers or business owners together to do mass purchasing. Group purchasing enables larger groups to gain a significant discount on things such as a television cable service. The broker would then receive a commission on bringing the business providing the service a large quantity of consumers.

Metamediaries

The target of metamediaries when addressing a brokerage business model is online shopping malls. These brokers not only bring two parties together, but they also provide additional services. Those services might include something related to the transactions such as payment or tracking of the goods provided when shipped.

Author: Mitch Fraser

Mitch Fraser is currently the director of two successful Australian companies that provide time and money saving solutions for their customers: Tomorrow Finance and Drawstring. At Tomorrow Finance, Mitch helps people find the cheapest home loan products to bring Tomorrow's dream into today; while at his web development company, Drawstring, Mitch focuses on the outcomes for his clients by taking the time to understand each client's business and unique situation while maximising their return on investment. Mitch obtained his Bachelor of Science in Computing Science and Diploma in Information Technology and Professional practice with first class honours, from The University of Technology, Sydney, in 2005.

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