The Business Model (Or Where Does the P2Pseller Revenue Come From?)

By Oleg Mikhailenko
Published in Business Model
March 10, 2022
5 min read
The Business Model (Or Where Does the P2Pseller Revenue Come From?)

P2Pseller will create the world’s largest connected warehousing and fulfillment network for online sellers. Excitement isn’t always enough, though - every successful business also needs to generate not only a healthy revenue stream, but also a profit. So we’re going to address the question on everyone’s mind: how do we make a profit? Where does P2Pseller’s revenue come from, and which types of revenue model do we depend on most heavily?

Like most other shared economy services, there’s no subscription fee required to use the app and website. There’s no monthly subscription fees associated with signing up and looking around, like many other marketplaces have. The user only has to register for an account, just like with any app or website. Then, once registered, users are immediately able to search for a number of available resources, and what’s more, tailor the search results to their individual needs. A combination of filters dealing with geographic location, service type, and date of availability are all there for the customer so they can look through everything that suits their requirements while eliminating everything that doesn’t.

Someone new to shipping and warehousing might be overwhelmed by all the options available. They may be intimidated by making a lot of phone calls to warehousing services without transparent pricing, or be unsure how to book the space they need for the amount of time they want. Someone experienced in product shipping might be over the hassle of putting in all the legwork themselves, but know exactly what they want. No matter their requirements, we’re sure to find something that’s suitable. Need twenty-five pallet spaces for eight weeks, within ten miles of a specific zip code, in a climate controlled warehouse? Need a servicer that can re-pack your goods for you and then pass the goods to your preferred freight company? No problem. Click the boxes, fill in the fields, click the search button and voila. In seconds, the user is immediately presented with every available option that meets their requirements, or at least the closest possible fit. Most importantly of all, customers can compare prices as they shop. The costs are even displayed up front, so there’s no guesswork or calling around involved. Users can stay on budget with zero stress.

Similarly, potential warehousing and service providers are also able to use the site (or the app!) to check out current market pricing and availability offerings from other servicers. If they check the site one day and discover that their prices are a little bit too high for the area for that particular month, then it’s no problem. They can instantly edit their availability and prices in real time in order to maintain peak competitiveness and attract new customers. Providers also have the opportunity to “boost” their listings through a targeted promotion service. Boosting ensures that their listings are always at the top of users’ search results, for the small cost of a prepaid premium listing fee. With more eyes on their listing, businesses can easily recoup the cost involved with promoting their services, making it a win-win for all parties involved.

P2Pseller receives further revenue through a bi-directional commission structure. Here’s how it works: Providers share a small percentage of the revenue gained courtesy of the platform, feeding into a commission-based revenue and business model. For every order they receive, we get a little bit of revenue. The customers taking advantage of our offerings also pay a small fee, conveniently added on top of the price initially set by the provider. What’s more, revenue is additionally gained through unobtrusive and curated site and app advertising, which is a revenue model that takes advantage of the millions of regular visitors using the platform each and every day.

P2Pseller leverages the mighty power of the shared economy by utilizing the strength of many to take advantage of bulk ordering discounts. We accomplish this by forming a coalition of our users and allowing everyone to benefit from their combined purchasing power in regards to freight costs. Those outside of the community of P2Pseller network e-sellers, especially those that are smaller or just starting out, are forced to either accept non-discounted or low-discount freight costs, or have to use freight brokers in order to lower their costs and remain competitive. This creates a “chicken and egg” conundrum which forces these sellers to reduce their profit margins in order to grow their business. We believe it doesn’t have to be that way. By utilizing P2Pseller’s network, any user without access to a significant freight discount program can ship their products through the platform, leveraging the entire purchasing power of all the app’s users to get the very best cost possible, regardless of their own individual sales quantities. This is done with full software integration between P2Pseller and the most popular freight and courier companies in order to keep the process as automated as possible. In return, P2Pseller receives a percentage of the freight spend directly from the freight forwarders in the form of a commission, with the most popular companies fighting for the massive volume of freight being shipped via the platform every single day. The freight companies get extra business, the users get to ship their products for less without paying an arm and a leg, and P2Pseller gets some extra generated revenue just from normal everyday use of the software. Everybody wins.

The final source of revenue for P2Pseller is via the application’s labor provision capabilities. As well as displaying warehouse and other fulfillment-related options, users can also search for human resources in exactly the same way they did before. Individual users can post their services, skills and availability, alongside an hourly or daily rate. Companies looking for help, from general labor to help unload trucks and containers, to forklift drivers, to health and safety specialists, can quickly and easily check who is available, and for what cost, on a real-time basis. This prevents companies from having to go through temping agencies, which are often slow, cumbersome, and charge a hefty price for their placement services. Revenue for P2Pseller is gained on these transactions by adding a percentage to the labor and hiring rates (which are initially set by each individual labor provider) with the markup also covering necessary expenses such as workers compensation insurance. This allows any companies that take advantage of these resources to do so in a very simple and uncomplicated way. The cost shown in the app and on the website is the final cost they pay, with no hidden surprises or surcharges.

By utilizing this diverse range of e-commerce revenue sources, including the transaction fee model and the commission-based model, P2Pseller is well-established to maintain a steady and consistent revenue stream. Growth is directly related to the number of users that can be introduced to the platform, making matters fairly uncomplicated. As the e-commerce market expands and is forced to look for alternative solutions to the lack of appropriate warehousing and the people to run and manage them, many individuals and businesses are struggling to find a service that suits their unique needs. Now, they don’t have to worry. P2Pseller’s shared economy approach will bring a unique and profitable outcome while still adding massive value for its users.


Tags

#subscription#profit#commission
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The P2Pseller Competitors (Or What Makes P2Pseller Truly Unique)

Oleg Mikhailenko

Co-Founder, CEO P2Pseller

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