Do You Want to Create a Marketplace Website Online? We Will Help You Build It!

A shark needs to swim, otherwise it will drown. Successful businessmen know this simple fact. Merely 20 years ago customers considered themselves lucky to be able to shop online without leaving home. Nowadays it is much more difficult to impress potential clients. They do not want to waste their time and effort on shopping, and where the demand goes, the offer must follow

Therefore, it is no surprise, that multi vendor sites and marketplaces have become a major trend of the 21st century. Create a marketplace, and you get all the customers no longer satisfied with the limited services of the old school e-commerce sites.

Why Is a Marketplace Better than an Ecommerce Website?

If you already have an e-commerce website or an online service you might ask why you would need to create a marketplace. The main argument in its favor is the ability to function without an inventory. After all, you simply assist both sides of the transaction(a seller and a buyer) to find each other, acting as a virtual middleman.

Other advantages are connected to this middleman role. Most of the arrangements and responsibilities are fulfilled by the seller, whilst the marketplace takes care of marketing and develops the functionality of the platform itself to make it easy and quick to use. Therefore, the margins are higher than those of a traditional site.

Unlike online stores based on a popular CMS, like Wordpress or Opencart, marketplaces boast broader functionality. Comparing prices, finding the best options and completing secure transactions while staying on the same web page are the hallmarks of a great online shopping experience. Marketplaces also allow multiple sharing possibilities. After finding a hidden treasure, a user can share it with his tribe and attract more paying customers for sellers, creating a viral effect and increasing sales figures.

Is Building a Marketplace the Right Choice for You?

It might seem that only the chosen ones can make a successful online marketplace. Actually, this business model can be applied to any industry or niche. Here are some examples that might surprise and motivate you:

  • Education: Udemy, SkillShare
  • Healthcare: Doctors on demand, ZocDoc
  • Finance: EquityZen and Funding Circle
  • Professional Services: UpCounsel, Science Exchange, HackerOne
  • Transportation: Uber, Lyft, BlaBlaCar
  • Home Services: Your Mechanic, Handy.

These are just a few examples of successful marketplaces, most of which evolved from ambitious startups. There are also great platforms in Consumer Goods, Real Estate, Hospitality, Food and even Personal Productivity.As you can see, whichever market you plan on conquering, making sure you create a great marketplace for it can turn your venture into a huge success.

Which Type of Marketplace Should You Choose?

Let’s say you decided to launch a startup and build your own revolutionary marketplace. What do you need to know to choose the right type? Depending on what the marketplaces sell, they are divided into three categories:

  • Product-oriented platforms help buyers to find different types of products. Two of the most famous examples are Amazon and eBay.
  • Service-oriented sites are just as common, but instead of offering goods, they supply services. Uber and Airbnb perfectly illustrate this category.
  • Hybrid marketplaces are similar to service-based websites but are more content-oriented. These platforms provide users with relevant information connected to their needs. For instance, TripAdvisor app allows you to book a hotel room or a flight and learn anything you need to know about a foreign country you are about to visit.

Another way to categorize marketplaces is by their participants.

  • P2P (peer-to-peer) or C2C (client-to-client) platforms allow individual users to provide goods or services for each other. If you remember the early days of eBay, you can get a clear picture of what a P2P marketplace looks like.
  • B2C (business-to-consumer) marketplaces provide businesses with opportunities to connect with their consumers. This might happen after the platform gains enough interest to attract corporate providers or when the marketplace’s users become successful enough to open their own enterprises.
  • B2B (business-to-business) platforms connect suppliers and buyers on a corporate level. TradeIndia and Alibaba were among the first B2B marketplaces, and smaller platforms are popping up around the world.

How Can You Build a Successful Marketplace?

If you’re asking yourself how to start an excellent online marketplace, there are three ways you can do it.

  1. If you don't have enough money and are ready to do some hard work, then you can choose the DIY option - development from scratch. Start by using a free theme, an online builder, or a cheap template and script.There are plenty of resources on the web, so you will have to spend time on researching this trial and error method. Make sure you’re ready for any false starts and mistakes that are bound to happen along the way No one can say for sure how much time and effort it will take for you to build a marketplace this way.
  2. f you want to launch your marketplace and start selling as soon as possible, the easiest way is to order an open source ready-made solution and customize it to your needs. It will work like a clone of other platforms, but you can easily customize its design. There are also some limitations to the features available, but this solution allows you to complete your first sales very quickly.
  3. If you have investors and are serious about building a new and groundbreaking enterprise, you can order custom development to make the platform perfectly suited to your needs. Building software from the ground up will take a little longer, but the end result will meet you every requirement to a T.

We hope you now realize that starting a marketplace is a sure way of evolving your business and increasing the revenue, as well as starting a new company. And the best part is that you do not have to do anything if you decide to order a ready-made or custom-made marketplace by RadeMade. Contact us now, and we will fulfill your business needs.

Launch a profitable marketplace

Every step of the marketplace development process is explained by domain experts in the series of articles.In addition, some first-hand accounts of running a marketplace are featured in the interviews with the founders.

Explore the steps
Marketplace wiki

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