How to make a website like Amazon, a successful marketplace

Current e-commerce trends are focused on marketplaces. The largest selling websites like Amazon, Etsy, AliExpress, etc., set a high standard of technology development and raise the bar constantly. They run mobile app, use the best advertising, complex systems how to work with sellers and other opportunities, so online business beginners think that it is incredibly difficult to start marketplace like Amazon. We will not dispute, marketplace building is a real challenge. Nevertheless, you can create and develop your own multi vendor market. Let's discuss this possibility in the Amazon example, and learn about the possibilities of powerful marketplace builder by Rademade.

Amazon: features and benefits

Amazon marketplace developed with the difference from most marketplaces. At the beginning, Amazon company developed a traditional (mono vendor) online store for the sale of books, CD, MP3, software, video games. Over time, there was a split into several stores for different areas: sales of electronics, clothing, furniture, food, lifestyle and healthcare products, toys. And only then the question arose about how to create an additional function on the existing website like the marketplace, and Amazon realized it. Amazon was the first to introduce the opportunity to leave feedback on the product, and sales have grown from this.

Amazon Marketplace as multi vendor e-commerce initiative was starting on the basis of the main web site in 2000. As a result, every merchant gets such opportunities when registering an account:

  • Sell new and used stuff on
  • Third-party vendors gain access to Amazon's customer base
  • Sell handmade products at a fixed price
  • Make a sale for items from the range

Thus, marketplace became the place, where everyone can trade along with regular offerings from Amazon. For this, the description of each product on the website should be carried out with accurate standardized details. But you don’t need to think how to make your own site without having to invest in a new website since you can work with an international giant like Amazon. In fact, not all sellers ship goods internationally. But in general, the marketplace format is available on Amazon's web sites in 60+ countries.

On the other hand, buyers get a greater range of shopping, because they can make orders on offers from third-party sellers. The search is carried out by the A9 search algorithm (a subsidiary of Amazon, which builds search and advertising technologies).

Amazon profits

Amazon expands the offerings on its website with the marketplace. In addition, the marketplace earns its fees on each sale from third-party vendors:

  • Amazon offers two selling plans: "Professional" for a $ 39.99 monthly and "Individual" without a fee but $ 0.99 per item sold.
  • The referral fee for each sale is 15% (on average), vary by category.
  • Fees for a pick, pack and weight charge (for goods what are stored in Amazon's fulfillment centers).
  • Amazon sends a buyer's payment to the seller. The marketplace does not pass along any credit card information.

Marketplace functions are free for buyers, they are paid by sellers. This is an important feature. Be sure to pay a lot of attention to how to pay, protect data and support multi-currency when you build a multi vendor selling website, for example, like amazon does it.

Building your own "Amazon"

Create a marketplace is more complicated than a regular online store. Multi vendor platform implies a wider set of functions. In particular:

  • Control of each stage: confirmation/cancellation of purchase, viewing/changing orders, technical support, adding information about the user.
  • The user interface to post/edit offers, update payment information/personal information, manage purchase/sale services, view transaction history, etc.
  • The reputation of sellers by customer feedback and sales volumes.
  • Establishment and collection of commission fees.
  • Different payment systems.
  • The protected system of user correspondence.

These features distinguish the marketplace from the online store. Creating the appropriate script and support affect the cost of marketplace building. It may be too expensive for a small startup. But this is not a reason to give up ambitious plans to develop the project. Marketplace builder pack will be much cheaper than hiring a professional team but will create the quality product. contains all the necessary specifications of multi vendor platform. This is the base version of a marketplace, MVP completely ready to work. You don’t need professional skills to start. Basic understanding of the wordpress is enough. Due to open source, you can modify the site from visual theme up to each plugin.

Amazon's success in the world

Many companies are trying to create a marketplace of consumer products, like amazon or similar p2p web sites. At present, Amazon pays much attention to the delivery. Here are a few examples for your inspiration and reflection:

Amazon registered a patent for the delivery by drones using parachutes. The ability to lower parcels vertically may be needed when delivered to alleys, fenced yards or other places with limited airspace. The first delivery by drone was made in British Cambridge and took 13 minutes.

AliExpress trading platform announced the refusal of deliveries of "Economy" type (free and without number) for buyers from Ukraine and Belarus. Since February 2017, all parcels for residents of these countries must be registered.

Amazon Marketplace brings 40% (about $40 billion) of Amazon's annual sales. Amazon owner Jeff Bezos took second place in the ranking of the richest people in the world (after Bill Gates) according to Bloomberg (March 2017). His financial condition is estimated at $ 75.6 billion, and Amazon's capitalization increased by about $ 9 billion. These indicators are quite a powerful incentive to risk and try to build your own marketplace like Amazon.

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