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[overcast]

There seems to be a lot of platforms that act like middleman marketplace. For example etsy is one such. Envato is another. And there is always ebay too. The base model here is have specific niche of items being sold. And marketplace allows some cuts for the site. So this way the site can sustain for selling and buying the items. Many marketplaces earn like millions a month. Take example of envato and etsy that has such high turnover. However we see the greenside only. We don't know how much compliance and legal issues they have.

So how much profitable are these middleman marketplaces?

 

[Brain]

I believe that no matter how high expenses or overheads are these marketplaces must still make profit.This is typical of any business.Both profit and expenses must be made but ways should be devise to have reserves even with all the expenses confronting the business.

 

[Wisdom01]

The middle men market place earn earn more profit when the product is been sold to the buyer ,all I know is that those middle men do add their price to the product most times to get more profit

 

[Balint098]

From the two marketplaces you mention alone it is quite clear that they're profitable. As for legal matters it heavily depends on where the owner lives.

 

[Toprexxy]

Yes there is a lot of profit for people involved in middleman market because the product you want to buy as a fixed price but the middleman will add a token to the price plus the delivery money at long run they make a lot of money to start there own business

 

[Joe555]

It is profitable. They can not be doing it if it is not yielding anything positive. No matter what their expenses might be, they will always have something at the end. The amount they sale to the consumer is always high and that translate to profits.

 

[Ewogboka]

It a very lucrative channel in business though not easy at initial but eventually you will be doing less to earn money the moment trust is established, you don't spend money to get money .

 

[Lydiandrew94]

Middlemen profitability is the ignorance of the wholesaler and/or the producers. Middlemen should have a backup business because these times people tend to dig deep to get goods and services cheaper.

 

[Ewogboka]

Middlemen profitability is the ignorance of the wholesaler and/or the producers. Middlemen should have a backup business because these times people tend to dig deep to get goods and services cheaper.

You are right but also remember that trust and minimum requirements some companies give out to medium to distribute some wholesalers might not be financially buoyant for that.

 

[Reznov]

if it's not a platform, then i don't think that the middleman makes any profit at all, he's just a person that helps getting jobs done in case there are 2 people that want to do a deal without knowing each others

 

[a_jerobon]

It a very lucrative channel in business though not easy at initial but eventually you will be doing less to earn money the moment trust is established, you don't spend money to get money .

That is true. Being a middleman is the kind of business that you do without the need of investing money in it. It takes time to earn from it but with time, you get trust from many customers and earn better.

 

[Ewogboka]

This method of earning is what most big distributors we see around engaged on, they take more than they pay for and make profit. It is more easier than starting your own business.

 

[Niftyicon]

The capital involved in the whole middleman business is quite low especially if you have earned the trust of the manufacturers. Sell first and pay thereafter.

 

[Solari8]

Middleman sometimes if not most times make alot of profit even more than the real owners,when you calculate the total money spent buy the producer and the total amount spent by middleman,you will realize thee middle usually make alot. Sometimes middleman may not spend any amount during transactions.

 

[Rollerkid]

There seems to be a lot of platforms that act like middleman marketplace. For example etsy is one such. Envato is another. And there is always ebay too. The base model here is have specific niche of items being sold. And marketplace allows some cuts for the site. So this way the site can sustain for selling and buying the items. Many marketplaces earn like millions a month. Take example of envato and etsy that has such high turnover. However we see the greenside only. We don't know how much compliance and legal issues they have.

So how much profitable are these middleman marketplaces?

Middleman business is also another business adventure that is very profitable. It can take the form of both offline or online. But in some situations, l see that the online own is more profitable than that of the offline aspect.

 

[Josemendez]

Middle men gets to earn from a business only upon successful selling of a product at a price higher than what the price should be , thus it is not really that lucrative business .

 

[Delaw2020]

In he chain if distribution, middlemen are the people between the wholesalers and consumers. They are popularly known as retailers. The job is highly profitable because the buy in small quantities and sell in smaller units, thereby making larger profits.

 

[ening31]

Middleman like ebay & etsy (platform) are there because seller doesn't have a solid marketing platform to help them promoting and selling, it's even easier with few clicks away & everything you need are there to support seller. In seller point of view, it might be cheaper & easier this way rather than building everything from stratch. I'm using such platform and it helps me a lot, of course they'll get profit only if there's product sold from seller so bigger platform with high traffic will be profitable.

 

[Ewogboka]

It is a very lucrative business if you are established, the wealthy people adopts this method to earn more money without put in so much money in the business .

 

[Wisdom01]

In he chain if distribution, middlemen are the people between the wholesalers and consumers. They are popularly known as retailers. The job is highly profitable because the buy in small quantities and sell in smaller units, thereby making larger profits.

Most times the profit they make aren't large compared to the amount the manufacturer are earning so the producers are the ones that earns the larger profit