The ongoing digital transformation of our daily lives, the COVID-19 pandemic, transition to cashless payments — these and other factors make more and more people prefer shopping online instead of visiting brick-and-mortar stores. In 2021, top online marketplaces, such as Amazon, eBay, and Taobao, sold $3.23 trillion worth of goods, and the figure is forecasted to reach $27.15 trillion by 2027. Even in the face of fierce competition, such market size opens tremendous opportunities for new marketplace platforms to fill a niche and build a loyal customer base.

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If you wonder how to build a marketplace website, bear in mind that its usability, design, and scalability would largely determine its future success. With over 20 years of experience in creating UX, web & product design solutions, Vide Infra has extensive cross-industrial expertise in the spheres ofeCommerce , real estate, hospitality, and fintech. In the article, we’ll review the main steps of developing an online marketplace, its essential features and share tips on picking the right solution for your concept.

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Why build an online marketplace platform

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The ongoing digital transformation of our daily lives, the COVID-19 pandemic, transition to cashless payments — these and other factors make more and more people prefer shopping online instead of visiting brick-and-mortar stores. In 2021, top online marketplaces, such as Amazon, eBay, and Taobao, sold $3.23 trillion worth of goods, and the figure is forecasted to reach $27.15 trillion by 2027. Even in the face of fierce competition, such market size opens tremendous opportunities for new marketplace platforms to fill a niche and build a loyal customer base.If you wonder how to build a marketplace website, bear in mind that its usability, design, and scalability would largely determine its future success. With over 20 years of experience in creating UX, web & product design solutions, Vide Infra has extensive cross-industrial expertise in the spheres ofeCommerce , real estate, hospitality, and fintech. In the article, we’ll review the main steps of developing an online marketplace, its essential features and share tips on picking the right solution for your concept.

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No need to store your own stock

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The marketplace owner needs to monitor content, work on attracting users, make sure the platform runs smoothly and that products meet quality requirements, but they don’ t have to do inventory management, rent warehouses, and hire couriers (unless it is a hybrid marketplace). All of this greatly reduces financial risks and improves business flexibility.

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Various monetization models

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There are plenty of revenue streams that can be tapped into by a marketplace owner. Just to name a few, there can be a fixed commission on every sold item, subscription fees, various advertising services, premium features for regular buyers, access to advanced analytics, or extensive customization of product cards for sellers. By combining several of these monetization models, a marketplace owner can effectively increase the platform’s revenue and achieve their business goals.

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Marketplace app development process

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In general, the building of every marketplace consists of four main stages: research and business analysis; choosing suitable technologies; designing UI and prototypes; development itself; post-release maintenance. Let’ s take a close look at each of them.

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Research & ideation

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First of all, every business idea requires validation. This step involves business analysts and a product manager who thoroughly research the current market situation and competitors, define their product’ s value proposition, and establish target audience and use case scenarios. As a result of this preliminary stage, your team should be able to clearly identify the future marketplace’ s purpose, the size of the potential market, and the audience.

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For example, when we at Vide Infra took up developing Follow.Art marketplace, the client’ s concept was clear: create a platform for direct interaction between the buyer and the seller. The goal of Follow.Art was to give freedom to artists by becoming a digital intermediary that attracts potential buyers, artists, and galleries for direct business — when the platform receives a payment, the funds are transferred directly to the artist's or gallery’ s account.

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