Victorian online marketplace segment booming
Victorian online marketplace start-ups are contributing around $1.6 billion in profit to the state, employ around 13,000 people and create an additional 80,000 indirect jobs.
This is the conclusion of a new report from EY-Parthenon and Victorian start-up ecosystem development agency LaunchVic.
The report found that of the $1.6 billion in gross state product generated by Victoria’s online marketplaces, $630 million is being generated by the online marketplaces themselves while $950 million is from the various platforms’ sellers.
More than 190 digital marketplaces are located in Victoria, and the segment is growing at 11% per annum, nearly four times the state’s current overall industry growth rate of 3%.
Examples of Victorian digital marketplaces that have become household names include unicorns SEEK, REA Group and Car Sales. The state is also home to a new generation of fast-growing marketplaces such as Redbubble, 99designs and Sidekicker.
These online marketplace start-ups have an attractive business model with low up-front costs as well as no need to own products or a physical inventory.
LaunchVic CEO Dr Kate Cornick said the report’s findings serve as a “strong endorsement of the entrepreneurial spirit and ability here in this state and more importantly, demonstrate the value of having a vibrant start-up ecosystem”.
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