This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Tophatter's Business Model is so successful?

Get all the answers


Tophatter’s Company Overview


Tophatter is an innovative online auction and e-commerce platform that provides a unique, interactive shopping experience to millions of customers worldwide. Founded in 2012, the company is headquartered in San Francisco, California, and has additional offices in Shanghai, China. Tophatter allows users to bid on a wide range of products, from jewelry and electronics to home goods and beauty products. The platform is designed to create a thrilling, game-like shopping experience, with auctions that start at $1 and last only 90 seconds. Tophatter's mission is to entertain and engage shoppers while providing a platform for a global network of sellers to reach new customers. Tophatter's business model revolves around facilitating rapid-fire auctions between buyers and sellers. Sellers list their products on the platform, and buyers bid on these items in real-time, 90-second auctions. This model creates a sense of urgency and excitement, encouraging increased user engagement. The platform is free to join for both buyers and sellers, with Tophatter making money by charging sellers a commission on each successful sale. The revenue model for Tophatter is primarily based on transaction fees. The company charges sellers a listing fee for each item they put up for auction, as well as a commission on each sale. The commission rate varies based on the category of the product being sold. Additionally, Tophatter also generates revenue through advertising. Sellers can pay for premium placements of their products to increase visibility and potential sales. This multi-faceted revenue model allows Tophatter to sustain its operations and continue to provide an engaging platform for buyers and sellers alike.

https://tophatters.co/

Country: California

Foundations date: 2011

Type: Private

Sector: Consumer Services

Categories: eCommerce


Tophatter’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: fun/entertainment, provides access, design/aesthetics

Functional: saves time, simplifies, variety, quality, informs


Tophatter’s Related Competitors



Tophatter’s Business Operations


Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Auction:

An auction is a procedure in which prospective purchasers submit competing bids for assets or services. Providing a product or service for sale to the highest bidder is a standard business practice. Because they satisfy both businesses and customers, auction business models help to market sustainability. Companies gain because their product is accessible to a pre-existing market. Customers profit from the auction model since they have a say in the product's ultimate pricing.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Dynamic pricing:

This pattern allows the business to adjust its rates in response to national or regional trends. Dynamic pricing is a pricing technique known as surge pricing, demand pricing, or time-based pricing. In which companies establish variable prices for their goods or services in response to changing market conditions. Companies may adjust their rates based on algorithms that consider rival pricing, supply and demand, and other market variables. Dynamic pricing is widely used in various sectors, including hospitality, travel, entertainment, retail, energy, and public transportation.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Exposure:

This model collects data and connects it to others; it is suggested to investigate the impact of advertising on consumer purchase dynamics by explicitly linking the distribution of exposures from a brand's media schedule to the brand purchase incidence behavior patterns over time. The danger is that we may be unable to react productively and cost-effectively to technological and market changes.

Featured listings:

A highlighted listing is more important and noticeable than a regular listing, providing maximum exposure for your workplace to consumers searching in your region. In addition, customers are attracted to these premium listings because they include more pictures of your home ? and its excellent location.

Network builders:

This pattern is used to connecting individuals. It offers essential services for free but charges for extra services. The network effect is a paradox that occurs when more people utilize a product or service, the more valuable it becomes.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Peer to Peer (P2P):

A peer-to-peer, or P2P, service is a decentralized platform that enables two people to communicate directly, without the need for a third-party intermediary or the usage of a corporation providing a product or service. For example, the buyer and seller do business now via the P2P service. Certain peer-to-peer (P2P) services do not include economic transactions such as buying and selling but instead connect people to collaborate on projects, exchange information, and communicate without the need for an intermediary. The organizing business provides a point of contact for these people, often an online database and communication service. The renting of personal goods, the supply of particular products or services, or the exchange of knowledge and experiences are all examples of transactions.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.