Everything about online platforms: definition, benefits, types and more
Online platforms are now an integral part of our everyday lives: The search for a book, a carpool, accommodation or if you offer goods and services yourself — everything takes place via a platform on the Internet. Here you can find out exactly what online platforms are, what advantages they have and how they earn money — even if end customers don't pay anything to use them.
What is an online platform? (definition)
Basically, an online platform is a digital meeting place. This is where people and companies come together to create specific Find offers, share information or to do business. This can be a website or an app that brings both sides together.
Example: Amazon brings buyers and sellers together, Airbnb connects hosts and travelers, and LinkedIn serves as a point of contact between employers and job seekers.
What are online platforms for?
The main purpose of an online platform is to enable seamless placement — at least on the surface. End customers find products, services, information or social contacts. The providers, in turn, find their customers there. From the perspective of the operator of an online platform, however, there is more to it than that.
Benefits of an online platform from the operator's perspective:
- Prorata profit from purchases/sales and/or revenue from advertising placements
- For success and profit, “only” the platform and infrastructure must be provided
- The provider himself does not have to provide any products or services
The provider of an online platform is largely spared from worrying about trends, hypes, fashion or zeitgeist — in contrast to sellers and service providers.
A good example is the “Kleinanzeigen” platform, which used to belong to eBay. People's need to buy and sell second-hand things among themselves is virtually timeless. As a result, the platform also remains relevant in the long term.
Benefits of an online platform from the customer's perspective:
As a rule, the larger a platform is, the greater the range of offers that you can access. This is how a very customer-friendly market, on which both the selection is large and the prices are rather low due to the high competitive pressure.
In addition, there are often buyer protection systems, such as secure payment and return options, all of which are direct handled through the platform's functions instead of having to argue directly with a buyer.
Benefits of an online platform from the providers' perspective:
On an established online platform, service providers and sellers find a large number of potential buyers before. The more specialized the platform is in an area, the more qualified customers are to complete a purchase.
Providers save themselves the hassle of running their own web shop. The respective online platform offers a ready-made system for selling your own products and, as a rule, numerous opportunities to advertise them in addition.
What types of online platforms are there?
Online platforms come in very different forms. The classic search for connections between buyer and seller may be the central idea, but it doesn't have to be. Here are a few examples:
- Marketplace platforms: They connect sellers and buyers of products (e.g. Amazon, eBay).
- Sharing platforms: The motto is “sharing instead of owning,” as with Airbnb (accommodation) or Uber (transportation services).
- Social platforms: Places to connect and share, such as Facebook, Instagram or LinkedIn.
- Freelance and project platforms: Portals such as Upwork or Fiverr to offer or buy services.
- Learning platforms: Like Coursera or Udemy, where you can find courses from a variety of providers.
- software platforms (platform ecosystem): Apple iOS or Google Android, which in turn serve as a basis for other apps.
Other types include coaching platforms, platforms for videos or courses, and scientific and online trading platforms. Each pursues its own logic and specialization. But all of them are about the basic principle of bringing multiple parties together conveniently.
Well-known examples of online platforms that illustrate the principle
- Amazon: Started as an online bookstore and is now a worldwide marketplace for (almost) everything.
- Airbnb: Bring people together who are looking for accommodation and those who temporarily offer their living space for it — at least that's the original idea.
- eBay: An auction house that connects buyers and sellers of new and used products.
- Uber: Mediates trips between drivers and passengers.
LinkedIn: Enables professional exchange, job search and networking.
How is money earned with online platforms?
Monetization models can look very different. End customers often even pay none direct Usage fees. These may only be secretly priced in by the providers and passed on in this way. What is certain is that virtually every online platform has ways to earn money:
- Commissions and fees: Platforms such as eBay or Airbnb charge a specific fee for every transaction.
- Subscription models: Some platforms offer a freemium model (such as LinkedIn), where certain features are free, while additional services require a paid subscription.
- Advertising revenue: Many social networks earn primarily from advertisements that are tailored to users.
- Listing fees: Some platforms charge money to allow companies or private individuals to post their offerings.
- Further use of data: User data is sometimes evaluated to make market trends or advertising placements more accurate.
In most cases, platforms combine different models to generate revenue as predictably and effectively as possible.
Online platform example: Cardmarket in detail
Cardmarket is an online marketplace where trading cards are offered and bought.
Well-known trading card games are Magic the Gathering, Yu-Gi-Oh!, pokemon, Disneys Lorcana and many more.
It is also possible to buy new goods in original packaging (so-called boosters and displays) as well as accessories such as card cases or dice.
Commercial providers and private individuals can gratuitous List tickets for sale. It is possible to make your own Create card lists, a filterable search function as well as the “Shopping Wizard”, which automatically determines the cheapest combination of the desired cards across several providers — including shipping costs. The use is therefore comparatively convenient for both sides.
Up to this point, it is completely free for both parties to use. Only when a purchase is actually made is charged a fee by the platform. This amounts to 5% of the item value (as of February 2025). There are other fees, such as those for an immediate refund of the payment made.
As already described, the advantage of the platform operator is that he does not have to worry about the individual products and transactions. These take place exclusively among buyers and sellers, all necessary for this Features are fully automated.
This example shows that a specialized online platform certainly has a right to exist, although others (such as classified ads) are also available for the “buy and sell” principle. Specialization creates a lot of trust among buyers, this also enables special functions (shopping wizard) that would otherwise not work.
Important terms you should know
- Network effect: The more people use a platform, the more attractive it becomes for others. This effect is often the key to a platform's rapid growth.
- Freemium: A business model in which basic functions are free but advanced features are chargeable.
- User-generated content: Content that is created by users themselves, such as reviews, comments or photos. This factor contributes significantly to the added value of a platform.
- Conversion: Describes the moment when a user performs a desired action — for example, makes a purchase, signs up, or signs up for a subscription.
- Community Management: The active support and moderation of users so that the platform remains a safe and attractive place.
Build an online platform yourself
There are a number of steps to take on the way to your own online platform. Starting with planning, collecting ideas about the range of functions, technical implementation and scaling as soon as the platform grows. In our guide, you'll find step-by-step instructions for Creating an online platform.
If you already have a specific project idea for your online platform on the table and need advice on how to implement it, get in touch with us. We'll show you the best way to build your online platform.
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Online platform — frequently asked questions and answers
Online platforms are digital places on the Internet where supply and demand meet. They connect people, companies or organizations and enable exchange or trade.
They make it easier to find and compare products, services, or information.
For example, there are marketplaces, social networks or learning platforms. Each species has its own specialization and target group.
You can compare offers faster and often get direct reviews from other users.
Often through commissions, subscriptions, or advertisements. Sometimes they charge for listing products or only release premium features for a fee.
The more users participate, the more valuable a platform becomes. This attracts more and more participants and accelerates growth.
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