Group6
Zhu, Can
Li, Heyi
Hu, Jiayi
Zheng, Haixiang
PoshmarkInk (闲鱼) is a second-hand trading platform that demonstrates the characteristics of network effect and long tail theory.
Network Effect
- Two-sided network effect
- Network value: More users join PoshmarkInk, which increases the transaction opportunities between buyers and sellers, making it easier for buyers to find what they want and for sellers to find customers. (At the core are individual buyers and individual sellers)
- Big data recommendation and personalised algorithms: The platform continuously accumulates product and user data to provide users with personalised recommendation services, improving user experience and transaction efficiency.
- Trust and word-of-mouth effect: Users' participation in transactions promotes the platform's reputation and word-of-mouth, and users tend to choose platforms that more people trust and use for second-hand transactions, thus forming a virtuous cycle. The platform also accumulates a large number of user reviews and transaction history, which provides reference for new users and increases the trust in transactions.
- Community effect: The community functions on the PoshmarkInk platform, such as fishponds (interest groups) and Q&A, allow users to communicate and interact with each other around specific interests and needs, which enhances users' sense of belonging and activity.
Long Tail Theory
- Users' personalised needs form a niche market: PoshmarkInk, as a second-hand goods trading platform, can provide a large number of different types of goods to choose from, including some goods that are not so popular in the market but still have a certain level of demand, which satisfies users’ diversified needs.
- Connecting the supply and demand of niche goods: PoshmarkInk connects the supply and demand of second-hand goods, especially niche cold second-hand goods, spontaneously forming many market segments, in which personalised recommendation algorithms also play an important role.
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