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What Does It Mean To Use Third Party Platforms?
Running a successful startup requires wearing a variety of hats at all times.
According to Forbes Report, startups should leverage third-party platforms to thrive.
Simply put, third-party platforms involve startups using an existing infrastructure and expertise built by the third-party platform to market and reach your customers.
Startups that choose to leverage third-party platforms save an enormous amount of resources involved in hiring, training, and retaining in-house experts.
Third Party Platform Key Takeaways
- Leveraging third-party platforms save businesses time and resources
- Many startups are able to reach a wide audience by listing their products and services on third-party platforms
- Third-party platforms sometimes come at a price, so it's important to ensure that this model is right for your business
Understanding How Third-Party Platforms Work
For new startups, keeping costs low, ensuring product availability, and building brand awareness is extremely important.
That is where leveraging third-party platforms can become a startup's greatest cost advantage.
A startup will list the products and services on the platform.
The third-party platform will display the products, deal and collect orders, manage payments, ship the orders, and track delivery.
Hosting and managing the supply chain for the startup could be at a small fee, which can sometimes be less expensive compared to building an in-house solution.
Therefore, the startup can focus on ensuring product availability, building brand awareness, and keeping the cost of operation low.
Choosing the right third-party platform is critical to the success of your startup.
Real-World Examples of How Startups are Leveraging Third Party Platforms
1.Cee Cees Closet
Cee Cees Closet is an example of startups that leverage third-party platforms to build a successful business online.
Powered by Shopify, the Cee Cees Closet has been able to build something within three years.
Today, Nick earns more on Upwork than he did at one of the world’s largest research firms.
According to Nick, his Upwork profile launched his solopreneur success, and ultimately sparked the idea behind his fast-growing startup.
The largest freelancing website, where businesses connect with talented freelancers.
Businesses using Upwork:
How To Start Leveraging Third Party Platforms
- Define your business objectives
- Understand your ecosystem
- List potential third-party platforms
- Conduct third-party screening, onboarding, and due diligence to select the best platforms
- Form appropriate contingency plans
- Utilize suitable technology to grow your sales
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