The term platform economy is particularly at home in the areas of digital marketplaces, digital transformation, eCommerce and digital commerce. It describes a business model in which digital platforms act as intermediaries between suppliers and buyers - bringing together buyers and sellers, service providers and users.
In contrast to traditional companies, which often produce products or services themselves, the platform economy creates a digital environment in which other businesses can be conducted. The platform itself usually earns money through brokerage fees, advertising or additional services.
An illustrative example is Amazon: Here, the platform operator (Amazon) provides the technology and ensures that retailers can present their products and customers can buy them. Amazon itself owns some of the goods, but many other retailers use the platform to sell their products. This creates a large digital marketplace that brings supply and demand together in a simple way.
The platform economy can increase business opportunities, create new business models and significantly simplify processes for companies and customers alike. Many digital innovations in recent years have been based precisely on this principle.
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