In simple terms, a vertical marketplace is a platform that serves a niche audience in a particular industry or market segment. While a horizontal marketplace caters to a broader audience, a vertical marketplace hones in on a specific area of business.
With a vertical marketplace, you can capitalize on a gap in the market and target a specific group of customers with tailored products or services. By honing in on a particular industry, you can create a more personalized experience for your customers, build a strong brand reputation, and establish yourself as an expert in your field.
In a recent interview with Brian Beck, Co-Founder of Master B2B and Managing Partner at Enceiba, Brian shed light on why vertical marketplaces are a valuable opportunity for distributors:
"As a very large horizontal marketplace, Amazon can create features and functionalities that meet common needs across industries, but it's difficult for a company of that magnitude to create bespoke experiences for specific categories of buyers.As vertical marketplaces, distributors and manufacturers can deliver tailored experiences to their buyers. In B2B, there are many situations where buyers have very specific needs. For example, a buyer purchasing concrete, metal, or chemicals will have precise technical specifications and may require consultation through the purchasing experience. Amazon has a hard time delivering that."
