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How To Build An Online Marketplace In Just 4 Steps?

In the not-so-distant past, buying something from somebody else was a pretty complicated task.

For example, let's say you wanted to buy jewellery from someone who no longer wanted it.

You had to travel to meet them, barter the item's price, and after all that, you had no guarantee that the seller (or item) was genuine.

How To Build An Online Marketplace In Just 4 Steps?: eAskme
How To Build An Online Marketplace In Just 4 Steps?: eAskme

All-in-all, there was too much effort and risk required.

Fast forward to today, and it's a very different story.

There are now numerous marketplaces that connect buyers and sellers with almost no effort required from either party.

According to research, around 2.14 billion people are expected to make an online purchase in 2021.

This has shot up exponentially in the past five years.

The demand for a marketplace business model continues to soar year after year, so let's explore how to build an online marketplace in only four steps.

Choose The Type of Marketplace Website You Want to Build:

There are different ways to set up a marketplace website.

The first step is to decide what type of marketplace website you want to create.

To make this decision, you should ask yourself whether you want to sell goods or services.

But, what's the difference?

Most website marketplaces trade goods. This could be clothes, jewellery, furniture, food, or any other product type.

Undoubtedly the most well-known and commonly-used goods marketplace website is Amazon. Starting an as online marketplace for selling books, Amazon now trades everything from electronics to pet toys.

In recent years, the popularity of marketplace websites for services has skyrocketed.

Upwork is a perfect example of a marketplace website for services.

This freelancing platform connects companies and freelances to share almost every type of service you can imagine.

From translation services to ghostwriting, Upwork offers a diverse marketplace that benefits freelancers and businesses.

The beauty of marketplace websites such as Amazon and Upwork is minimal effort for users, and there are payment protection regulations in place to protect buyers, sellers, workers, and contractors.

Pick a Form of Trade:

Once you have landed on the type of marketplace website you want to build and what you want to trade, you will next have to pick a form of trade.

There are three primary forms of trade to choose from:

  • Business to Business (B2B) model designed for trade between businesses
  • Business to Customer (B2C) model where businesses provide goods or services directly to individual customers
  • Customer to Customer (C2C) model where individuals sell goods and services directly to other individuals

B2B marketplace models include Amazon Business, Alibaba, IndiaMart, and Rakuten Marketplace.

Facebook Marketplace is one of the most well-known B2C marketplaces in the world and, when it comes to C2C marketplace platforms, eBay and Depop are top of the charts.

Select what Features your Platform Should Have:

So your plan is defined. You know what you want to trade and the business model you're using.

What's next? Now comes the tricky bit. It's time to define the features your platform should have.

To do this, you will need to do some research.

It's important to remember that different features may need to work differently for buyers and sellers on the marketplace site.

As a result, you'll need to do your homework and figure out solutions for both.

Sellers on the site are going to be paying attention to features such as product screens to add new products, update labels ("sold out", "in stock", etc.), and review customer feedback.

They will also want access to statistics on the products, including sales volume within specific periods.

On the other hand, buyers are going to be more interested in having an intuitive home screen where they can quickly access main features such as the shopping cart, product listings, chat functions, and order details.

Find the Right Tech Partner:

Building a thriving marketplace website requires tech expertise.

To guarantee success, it's common to partner with a tech company that will develop your online marketplace and deliver scalable solutions and high-end UX.

Stormotion.io is led by a team of top tech entrepreneurs who work with you to co-create your marketplace vision, leveraging their experience to help you navigate challenges.

Conclusion:

Building an online marketplace is not easy, but it is straightforward.

With the right vision and the right tech partners, you can start an online marketplace in just four steps:

  • Choose what you want to sell on your marketplace
  • Pick a form of trade
  • Define the platform features
  • Partner with a team of tech experts to bring your vision to life

If you still have any question, feel free to ask me via comments.

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Gaurav Kumar

Gaurav Kumar is the founder of eAskme.com. He is the professional blogger, writer, motivational speaker and online entrepreneur. He the man behind "Blogging for money guide" and "complete domain name guide". eAskme will help you to become an online entrepreneur. You can learn SEO, Money MAKING, SEO, blogging and more.

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