How to Build Marketplace: 10 Simple Steps You Should Complete

1. Define the potential to create a marketplace

Define your marketplace platform idea

How Does a Marketplace Work?
Statistics: Projected eCommerce Industry (Average Revenue Growth)

Define a pain point

Define your target audience

  • Age
  • Location
  • Occupation
  • Family
  • Education level
  • Yearly income
  • Possible pain points
  • Media they use

2. Define the marketplace type

How to Build a Marketplace Website: Key Types
  • Peer-to-Peer (P2P)
  • Business-to-Customer (B2C)
  • Business-to-Business (B2B)
  • Vertical marketplace
  • Horizontal marketplace
Most Popular Categories for Online Shopping (Statista, 2018)
  • What types of products do you plan to sell?
  • Who’ll be your target audience?
  • What countries do you want your marketplace to operate in?
  • What is the size of the target market?

2. Study and learn from the top-performing marketplaces

1. Amazon

2. Etsy

3. eBay

4. Alibaba

5. Bonanza

3. Choose the right marketplace monetization model

  • Commission
  • Subscription
  • Listing fee
  • Advertising
  • Freemium
How Marketplaces Make Money: Key Monetization Strategies

4. Finalize your unique value proposition & strategy

  1. SWOT analysis
  2. Business model canvas
Business Model Canvas Example

3. Marketing strategy

  • Marketing campaign (paid ads)
  • Influencer marketing
  • SMM (Social Media Marketing)
  • SEO & content marketing
  • Partners (who’ll promote your marketplace)

5. Select a suitable option for creating a marketplace

  1. Create a marketplace website from scratch
  2. Use a marketplace website builder and open-source eCommerce platforms like WordPress, WooCommerce, Wix, etc.
  3. Create an online marketplace with no-code SaaS like Shopify or WooCommerce
  4. Marketplace website development on top of API-based SaaS
Choose Custom Marketplace Development Option

6. How to build a marketplace: chose a functionality-set

User Roles of a Multi-Vendor Marketplace
  1. User accounts and profiles
  2. Search and filters

7. Define users and roles within a multi-vendor marketplace

8. Follow the process to create a marketplace prototype

9. Promote your online marketplace & grow the base

  • Scan your competitors to identify sellers who might be interested in your marketplace.
Marketplace Examples Landscape
  • Look for merchants in the target region, get in touch with them, and offer them special offers for joining your marketplace.
  • Check industry-oriented social media groups to connect with your target audience and get inspiration for further marketplace improvements

10. Track the marketplace performance & improve

How much does it cost to create a marketplace website?

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