DAY 1: LAYING THE
FOUNDATION FOR YOUR
MARKETPLACE JOURNEY
Prepared by Ameen Alam
DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
Table of Contents
Day 1: Introduction to E-Commerce, Q-Commerce, and Rental E-Commerce .......................... 2
Objective ........................................................................................................................... 2
1. What is E-Commerce? .................................................................................................... 2
2. What is Q-Commerce?.................................................................................................... 4
3. What is Rental E-Commerce?.......................................................................................... 6
4. Key Business Jargon to Know ........................................................................................... 6
5. Your Task for Day 1 ......................................................................................................... 9
Step 1: Choose Your Marketplace Type ............................................................................ 9
Step 2: Define Your Business Goals ................................................................................. 9
Step 3: Create a Data Schema ......................................................................................... 9
Step 4: Submit Your Work .............................................................................................. 10
FAQs ................................................................................................................................ 10
End Note .......................................................................................................................... 11
PREPARED BY AMEEN ALAM 1
DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
Day 1: Introduction to E-Commerce, Q-Commerce, and
Rental E-Commerce
Welcome to Day 1 of the Marketplace Builder Hackathon 2025! Embark on an exciting
journey where creativity meets technology, enabling you to build and launch your very
own marketplace. This experience is designed to help you master critical concepts and
tools, preparing you to thrive in real-world challenges and opportunities. This is the
starting point of an exciting journey where you'll learn, build, and launch your own
marketplace. By the end of this hackathon, you'll have gained hands-on experience in
designing a fully functional platform, prepared to handle real-world challenges and
opportunities. Today marks the beginning of your journey toward creating a fully
functional, live e-commerce marketplace. This session is designed to lay a robust
foundation by diving deep into the concepts of di erent marketplace models,
familiarizing yourself with essential business terminology, and getting started on the
structural blueprint for your project.
Objective
By the end of today, you will:
1. Understand the key di erences between e-commerce, q-commerce, and
rental e-commerce.
2. Learn the essential business jargon used in these domains.
3. Define your marketplace type and write down your business goals and initial
ideas.
4. Start brainstorming your data schema on paper and identify core business
entities.
1. What is E-Commerce?
E-commerce (Electronic Commerce) refers to the buying and selling of goods or
services through online platforms. It has revolutionized how businesses operate by
o ering a virtual storefront accessible to global audiences.
Over the last decade, global e-commerce sales have grown exponentially, with total
sales reaching over $5 trillion in 2021 and projected to exceed $7 trillion by 2025. This
growth is driven by advancements in technology, increasing internet penetration, and
changing consumer preferences for online shopping. The rise of mobile commerce (m-
commerce) has further accelerated this trend, making e-commerce accessible
anytime, anywhere.
Key Features of E-Commerce:
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
Product Catalog: Displays products with descriptions, images, pricing, and
stock availability.
Order Fulfillment: Handles the journey of an order from placement to delivery.
Payment Systems: Facilitates secure transactions via payment gateways (e.g.,
PayPal, Stripe).
Customer Management: Tracks user data, order history, and preferences.
Shipment and Tracking: Ensures timely delivery with real-time logistics
updates.
Examples of E-Commerce Businesses:
General E-Commerce: Amazon, Daraz.
Niche E-Commerce: Stores specializing in specific categories, like tech gadgets
or handmade crafts.
Why Build an E-Commerce Marketplace?
Scalability: Scale your business to reach a global audience without
geographical constraints.
Convenience: Provides customers with a seamless shopping experience.
Profitability: Leverage online visibility to increase revenue streams through
direct sales and services.
E-commerce (Electronic Commerce) refers to the buying and selling of goods or
services through online platforms. It has revolutionized how businesses operate by
o ering a virtual storefront accessible to global audiences.
Key Features of E-Commerce:
Product Catalog: Displays products with descriptions, images, pricing, and
stock availability.
Order Fulfillment: Handles the journey of an order from placement to delivery.
Payment Systems: Facilitates secure transactions via payment gateways (e.g.,
PayPal, Stripe).
Customer Management: Tracks user data, order history, and preferences.
Shipment and Tracking: Ensures timely delivery with real-time logistics
updates.
Examples of E-Commerce Businesses:
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
General E-Commerce: Amazon, Daraz.
Niche E-Commerce: Stores specializing in specific categories, like tech gadgets
or handmade crafts.
Why Build an E-Commerce Marketplace?
Scalability: Scale your business to reach a global audience without
geographical constraints.
Convenience: Provides customers with a seamless shopping experience.
Profitability: Leverage online visibility to increase revenue streams through
direct sales and services.
2. What is Q-Commerce?
Q-Commerce (Quick Commerce) is a fast-paced subset of e-commerce focused on
rapid delivery. It addresses urgent consumer needs by o ering items within a short
timeframe, typically under an hour.
Key Features of Q-Commerce:
Streamlined Inventory: Focus on high-demand essentials like groceries,
medicine, and snacks.
Localized Delivery: Operates within small geographical areas to maximize
e iciency.
Optimized Logistics: Uses smart routing and delivery algorithms to reduce
delays.
Customer Engagement: Provides live order tracking and instant updates to
enhance transparency.
Examples of Q-Commerce Businesses:
Food Delivery: Foodpanda, Uber Eats.
Grocery Delivery: Instacart, Airlift.
Pharmaceutical Delivery: Dawaai.
Impactful Scenarios for Q-Commerce:
Emergencies: Delivering critical items like medicine or baby formula during
unexpected situations. For example, during a city-wide lockdown, Q-Commerce
platforms ensured timely delivery of essential medicines to patients unable to
visit pharmacies.
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Last-Minute Needs: Catering to urgent requirements such as forgotten
groceries or event supplies. An instance could be a customer realizing they need
a key ingredient for dinner and receiving it within 30 minutes.
On-Demand Convenience: Supporting busy individuals with rapid access to
essentials without leaving their homes. For example, working professionals can
order snacks or beverages during breaks and have them delivered directly to
their workplace.
Emergencies: Delivering critical items like medicine or baby formula during
unexpected situations.
Last-Minute Needs: Catering to urgent requirements such as forgotten
groceries or event supplies.
On-Demand Convenience: Supporting busy individuals with rapid access to
essentials without leaving their homes.
Why Build a Q-Commerce Marketplace?
Consumer Convenience: Meets immediate needs for fast delivery of essentials.
Competitive Advantage: Di erentiates your business from traditional e-
commerce.
Higher Retention Rates: Faster service fosters customer loyalty and repeat
purchases.
Q-Commerce (Quick Commerce) is a fast-paced subset of e-commerce focused on
rapid delivery. It addresses urgent consumer needs by o ering items within a short
timeframe, typically under an hour.
Key Features of Q-Commerce:
Streamlined Inventory: Focus on high-demand essentials like groceries,
medicine, and snacks.
Localized Delivery: Operates within small geographical areas to maximize
e iciency.
Optimized Logistics: Uses smart routing and delivery algorithms to reduce
delays.
Customer Engagement: Provides live order tracking and instant updates to
enhance transparency.
Examples of Q-Commerce Businesses:
Food Delivery: Foodpanda, Uber Eats.
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
Grocery Delivery: Instacart, Airlift.
Pharmaceutical Delivery: Dawaai.
Why Build a Q-Commerce Marketplace?
Consumer Convenience: Meets immediate needs for fast delivery of essentials.
Competitive Advantage: Di erentiates your business from traditional e-
commerce.
Higher Retention Rates: Faster service fosters customer loyalty and repeat
purchases.
3. What is Rental E-Commerce?
Rental E-Commerce focuses on providing consumers with access to products and
services on a rental basis, allowing short-term use instead of outright ownership. This
model is highly sustainable and cost-e ective.
Key Features of Rental E-Commerce:
Inventory Management: Tracks product availability and condition.
Reservation Systems: O ers booking options for specific dates and times.
Return Policies: Manages the return process seamlessly.
Pricing Models: Includes flexible rates like hourly, daily, or weekly fees.
Examples of Rental E-Commerce Businesses:
Car Rentals: Hertz, Enterprise.
Event Rentals: Party supplies, wedding decor.
Equipment Rentals: High-end cameras, construction tools.
Why Build a Rental E-Commerce Marketplace?
Resource Sharing: Promotes a sustainable model that reduces waste.
Cost E iciency: Provides a ordable access to expensive products.
Market Potential: Attracts diverse customers looking for flexible ownership
options.
4. Key Business Jargon to Know
Understanding these terms will enhance your ability to design and manage a
marketplace e ectively. During the hackathon, you will encounter these terms as you
define product catalogs, calculate customer acquisition costs, or analyze conversion
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
rates. Mastery of this jargon will help align your technical solutions with core business
objectives. These concepts form the backbone of e icient marketplace operations and
decision-making, helping you align technical implementation with business objectives:
Understanding these terms will enhance your ability to design and manage a
marketplace e ectively:
SKU (Stock Keeping Unit): Unique identifiers for inventory tracking.
Order Fulfillment: Managing the end-to-end process of delivering orders.
Delivery SLA (Service Level Agreement): Commitment to a specific delivery
timeframe.
Churn Rate: The percentage of customers who discontinue using a service.
Inventory Turnover: The speed at which products are sold and restocked.
Dynamic Pricing: Adapting prices based on demand, competition, or availability.
Customer Acquisition Cost (CAC): The cost associated with acquiring a new
customer.
Lifetime Value (LTV): The total revenue a business expects to earn from a
customer over their relationship.
Net Promoter Score (NPS): A metric that measures customer loyalty and
satisfaction.
Cart Abandonment Rate: The percentage of customers who add items to their
cart but do not complete the purchase.
Gross Merchandise Value (GMV): The total sales value of merchandise sold
through a marketplace.
Average Order Value (AOV): The average amount spent per order.
Retention Rate: The percentage of customers who continue to use your services
over a period.
Bounce Rate: The percentage of visitors who leave your website without
interacting.
Conversion Rate: The percentage of visitors who complete a desired action, like
making a purchase.
Upselling: Encouraging customers to purchase higher-end products or add-ons.
Cross-Selling: Suggesting related products or services to customers.
Wholesale Pricing: O ering products in bulk at discounted rates.
Markup: The di erence between the cost price and selling price of a product.
Margin: The percentage of profit earned on a product.
Omnichannel Strategy: A seamless shopping experience across multiple
channels, like online, mobile, and in-store.
Supply Chain: The network involved in producing and delivering a product to the
customer.
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
Drop Shipping: Selling products without holding inventory by shipping directly
from suppliers.
A iliate Marketing: Promoting products and earning a commission for sales
generated through your referrals.
Landing Page: A standalone web page designed to capture leads or convert
visitors.
Heatmap Analysis: A visual representation of user interactions on a webpage.
User Experience (UX): How a user interacts with and experiences a website or
application.
Personalization: Customizing content, o ers, or experiences based on user data.
Localization: Adapting your marketplace for a specific region or audience.
Lead Time: The time it takes to fulfill an order from placement to delivery.
Backorder: Allowing customers to order products that are currently out of stock.
Flash Sale: A limited-time sale to drive urgency and increase sales.
Bundling: O ering multiple products together at a discounted price.
Customer Segmentation: Dividing customers into groups based on shared
characteristics.
A/B Testing: Comparing two versions of a webpage or app to determine which
performs better.
Predictive Analytics: Using data and machine learning to forecast future trends
and behavior.
Logistics: The planning, execution, and management of transportation and
delivery.
Reorder Rate: The frequency at which customers make repeat purchases.
Inventory Shrinkage: Loss of inventory due to theft, damage, or errors.
Freemium Model: O ering basic services for free while charging for premium
features.
SaaS (Software as a Service): A subscription-based software delivery model.
Net Revenue: Total revenue minus returns, discounts, and allowances.
SEO (Search Engine Optimization): Optimizing a website to improve its visibility
in search engine results.
PPC (Pay-Per-Click): An advertising model where advertisers pay for each click
on their ads.
ROAS (Return on Advertising Spend): A metric to measure the e ectiveness of
advertising campaigns.
Shipping Zones: Geographic areas where specific shipping rates and rules apply.
White-Labeling: Selling products or services under your own brand while another
company produces them.
Dark Store: A warehouse set up for online order fulfillment instead of in-store
shopping.
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
Smart Inventory: Using data and AI to optimize inventory levels and reduce
waste.
Zero Inventory Model: A model where businesses hold no stock, relying entirely
on third-party suppliers.
5. Your Task for Day 1
Step 1: Choose Your Marketplace Type
Options:
o General E-Commerce
o Q-Commerce
o Rental E-Commerce
Document your choice and describe its primary purpose.
Step 2: Define Your Business Goals
Answer these guiding questions:
What problem does your marketplace aim to solve?
Who is your target audience?
What products or services will you o er?
What will set your marketplace apart (e.g., speed, a ordability, customization)?
Step 3: Create a Data Schema
1. Identify the entities in your marketplace (e.g., Products, Orders, Customers,
Delivery Zones).
2. Draw relationships between these entities using a diagram (pen and paper
preferred). Below is an example of a simple schema diagram:
[Product]
- ID
- Name
- Price
- Stock
|
|
[Order] ---------> [Customer]
- Order ID - Customer ID
- Product ID - Name
- Quantity - Contact Info
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DAY 1: LAYING THE FOUNDATION FOR YOUR MARKETPLACE JOURNEY
This diagram shows how products are linked to orders, and orders to customers. The
relationships and attributes you define will vary depending on your marketplace type.
3. Focus on including key fields for each entity, such as:
o Products: ID, Name, Price, Stock.
o Orders: Order ID, Customer Info, Order Details, Status.
o Delivery Zones: Zone Name, Coverage Area, Assigned Drivers.
Remember, your schema is a blueprint, so keep it simple but comprehensive enough to
represent your marketplace’s core functionality.
1. Identify the entities in your marketplace (e.g., Products, Orders, Customers,
Delivery Zones).
2. Draw relationships between these entities using a diagram (pen and paper
preferred).
3. Focus on including key fields for each entity, such as:
o Products: ID, Name, Price, Stock.
o Orders: Order ID, Customer Info, Order Details, Status.
o Delivery Zones: Zone Name, Coverage Area, Assigned Drivers.
Step 4: Submit Your Work
Take a photo or scan your business goals and data schema.
Submission is not required immediately. Instead:
o Post your work on LinkedIn to showcase your progress.
o Keep it for personal reference; we will review it in the next interview.
o Alternatively, create a 'notes' folder in your NextJS Design JAM 2024
hackathon repository and upload all images there for easy access.
FAQs
Q1: Can I switch my marketplace type later?
Yes, but it is recommended to finalize your choice early to streamline your
planning.
Q2: Do I need technical knowledge to create a data schema?
No, focus on the business logic. Technical implementation comes later.
Q3: What if I have trouble defining my business goals?
Use the examples provided for inspiration and consult with mentors for clarity.
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Q4: Do I need software to create my diagram?
No, a hand-drawn diagram is su icient for now.
Q5: How detailed should my data schema be?
Include essential fields for each entity but avoid overcomplicating it at this stage.
End Note
Day 1 is all about understanding your marketplace and laying a strong foundation for the
rest of the hackathon. Today’s activities—choosing your marketplace type, defining
business goals, and creating a data schema—are critical to aligning your technical
implementation with real-world business needs. As you progress through the
hackathon, these initial steps will guide you in building a functional, e icient, and
innovative marketplace. Keep your focus on clarity, simplicity, and practicality.
Great work today and get ready for the challenges ahead!
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