Until now, Twitter has heavily focused on generating revenue through advertising. And while that is going fairly well, the company now aims to diversify the profits by considering a marketplace on its platform, somewhat similar to Square Market.
Square Market is essentially an extensive listing of different items which can be purchased by Square users. However, it remains to be seen that if Twitter will be able to imitate the model effectively enough.
The idea, here, according to sources is, “They’re working on a concept similar to Square. They want to partner with bigger retailers and have check out cards on the platform, instead of just hashtag commerce.”
Until now, retailers and other vendors have tried to trigger up their sales by using hashtag campaigns. However, while these bring some revenue from advertising for Twitter, the company doesn’t get to have anything out of the sales. With a dedicated platform-specific marketplace, Twitter will be able to get a chunk out of every sale.
However, the commerce side of things will essentially be handled by a notable vendor, such as PayPal, if Twitter indeed implements the idea any time soon. Although currently the company is simply considering the idea, it seems somewhat unavoidable for Twitter because like Facebook, it will have to diversify its revenue stream.
Advertising alone can help Twitter garner profits only to a certain extent. And to continue growing profits, which it must now that it is public, Twitter needs ideas like a commerce marketplace of its own.