Which of the following is NOT true about online marketplaces?

In many ways, online marketplaces are the perfect business model. Since they facilitate transactions between independent suppliers and customers rather than take possession of and responsibility for the products or services in question, they have inherently low cost structures and fat gross margins. They are highly defensible once established, owing to network effects.

Today, home swapping is commonplace, and vacation rentals are a $24 billion market in the United States alone, according to a market research company. One can still pop into a hotel or local spa for a massage or manicure. But the rise of on demand beauty and wellness apps and websites doesn’t mean you have to forgo the convenience of on-site beauty and fitness treatments if you’re staying in a vacation rental.