We all know how convenient is for us to purchase our favorite products from online marketplaces instead of physical stores. Believe it or not but “generation Z and millennials” are becoming more and more addicted to online shopping.
Not only this, many credit card companies also offer higher reward points whenever any consumer purchases an item from an e-Commerce website. So, there is a lot of growth potential in creating an online shopping platform.
You will feel astonished to know that the growth of the online retail marketplace will account for a whooping figure of $8,148 billion by the year 2026. Although, there are justifiable reasons to support the growth of online marketplaces – such as: the convenience to react multiple sellers, lucrative offers, fascinating products and many more.
Retail e-commerce sales worldwide from 2014 to 2026
We have presented a comprehensive guide for you so that you can create your own online marketplace. We have conducted a detailed analysis for your convenience to manifest your dream of building an online e-commerce application or website.
Why are eBay, Walmart & Etsy among the top 10 marketplaces in the world?
Before jumping into the steps for building online marketplace app development, first let’s understand about the key reasons behind the exponential growth of the world’s largest marketplaces.
eBay, Walmart, and Etsy are among the top 10 marketplaces in the world due to several key factors. One of the main reasons is their global reach function. It enables buyers and sellers from around the world to connect with each other. .
Another reason for its success is its user-friendly platforms. As it is easy for both buyers and sellers to navigate and conduct transactions. These marketplaces also offer a wide range of products at competitive prices, which attracts customers looking for affordability and convenience.
Additionally, eBay, Walmart, and Etsy have robust marketing strategies that help them to promote their brands and products effectively. This includes targeted advertising campaigns and social media marketing, which helps to drive traffic and sales to their platforms.
These marketplaces also prioritize customer service and satisfaction ratio. As, they offer easy returns and refunds, as well as reliable shipping and delivery options. This builds trust with customers and encourages them to return to the platform for future purchases.
Finally, eBay, Walmart, and Etsy have invested heavily in technology and innovation, constantly improving their platforms to meet the evolving needs of their customers. This includes features such as personalized recommendations, advanced search algorithms, and mobile-friendly interfaces.
Future of Online Marketplace
In reality, many of us still claim that advanced technologies (such as: voice command searching, AI technology, the introduction of re-commerce, etc) will be the future of e-commerce. However, the reality is that – all these modern technologies have started integrating in our daily operations.
For example: 27% of people uses voice search while searching for something online instead of putting pressure on their fingers. So, your marketplace app platform should also give emphasizes all the modern technologies as much as possible.
1. Voice Search
It is a modern technology that is transforming the way people interact with online marketplaces. It allows users to search for products and services using voice commands, rather than typing on a keyboard or screen.
This technology is becoming increasingly popular due to its convenience and ease of use. With voice search, users can quickly and easily find what they’re looking for without having to navigate through menus or type in search queries.
2. Warehouse Automation Technologies
Automation technologies are revolutionizing the warehouse’s operations. These technologies use advanced robotics and software to automate tasks such as inventory management, order fulfillment, and shipping.
It can also reduce costs by eliminating the need for manual labor and increasing efficiency. This can help businesses to stay competitive in a rapidly changing market.
3. AI Technology
It is transforming the online marketplace by enabling businesses to build marketplace apps on platforms that incorporate AI capabilities. These apps can use AI to improve the customer experience by offering personalized recommendations, search results, and product suggestions.
AI can also help to automate tasks such as inventory management and order fulfillment, reducing errors and increasing efficiency. By using AI-powered marketplace app platforms, businesses can stay competitive and provide a better overall shopping experience for their customers.
4. Introduction of Re-commerce
Re-commerce is an emerging trend in the retail industry where businesses buy and sell used or pre-owned goods. This practice is gaining popularity as consumers become more environmentally conscious and look for ways to reduce waste.
Re-commerce can also help businesses to increase revenue and reach new customers. By introducing re-commerce into their business models, companies can benefit from the growing demand for sustainable and affordable shopping options.
Chatbots are software programs that can simulate human conversations with users. They are increasingly being used by businesses to improve customer service and reduce response times.
Chatbots can help to automate tasks such as answering frequently asked questions, processing orders, and providing personalized recommendations. They can also operate 24/7, making it easier for customers to interact with businesses at any time.
By using chatbots, businesses can improve their overall customer experience and increase customer satisfaction while reducing costs.
Top 6 Platforms for Developing the Online Marketplace Website
To curtail your efforts and to answer your question “how to create a marketplace website” we are suggesting some renowned tools. At Amplework, we believe that it is always the best approach to make our clients aware about the available tech options from the pool of technologies.
1. Magento – Adobe Commerce
Magento is an open-source e-commerce platform that has gained a lot of popularity as a platform for online marketplace development. It is designed to be a highly customizable, scalable, and flexible solution for making it an ideal choice for businesses of all sizes.
One of the key features of Magento is its ability to handle complex e-commerce websites with ease. This includes features such as multi-vendor support, multi-currency support, and multi-language support. It also offers a range of integrations and extensions that can be used to add new features and functionality to your marketplace website.
Magento also offers a wide range of extensions and plugins that can be used to add additional functionality to your marketplace website. This includes extensions for search engine optimization (SEO), social media integration, and analytics.
One of the key benefits of Shopify is its user-friendly dashboard, which allows you to easily manage your products, orders, and customer data. It also offers a range of marketing tools such as email campaigns, social media integration, and search engine optimization (SEO) features to help you reach a wider audience and increase sales.
WooCommerce is a popular plugin for WordPress that can be used to create an online marketplace. It is an open-source platform that offers a range of customization options to fit your specific needs.
One of the benefits of WooCommerce is its integration with WordPress, which makes it easy to manage your website and content from one central location. It also offers a range of plugins and themes that can enhance the functionality and appearance of your marketplace.
WooCommerce supports a variety of payment options, including PayPal, credit cards, and bank transfers, making it easy for customers to make purchases.
4. Big Commerce
It is a cloud-based platform, which means that you don’t need to worry about hosting or maintaining your website. It also offers 24/7 customer support to help you with any issues or questions that may arise.
One of the benefits of Big Commerce is its scalability, which means that it can be used to build a marketplace of any size, from a small online store to a large enterprise-level business. It also offers a range of templates and design options to help you create a unique and professional-looking marketplace.
5. Nautical Commerce
Nautical Commerce is a platform designed specifically for the marine industry, providing an online marketplace for marine products. It offers features such as product search and comparison, as well as a shipping calculator.
The platform aims to simplify the buying and selling process for marine products by connecting buyers and sellers in one place. It also offers a range of benefits to marine industry businesses, such as increased exposure to potential customers and streamlined operations.
6. WCFM Marketplace
For vendors, WCFM Marketplace offers an intuitive dashboard that enables them to manage their products, orders, and shipments. They can also communicate with customers directly through the platform. Additionally, WCFM Marketplace provides a range of add-ons and integrations to enhance the functionality of the marketplace.
With WCFM Marketplace, marketplace owners can easily manage vendors and their products. They can set up commissions, manage payouts, and monitor vendor performance. The plugin also provides various shipping options and supports multiple payment gateways.
Read about: The Impact of Enterprise App Development
Features to Include in Your Marketplace
Since, the intervention of smartphones and applications – we are continuously indulged in discussions related to what specific features an application provides as compared to the other applications.
Your e-commerce application should incorporate effective features so that you can fascinate your targeted audiences. Although it is important to specifically focus on the development of advanced features as well as must-have features.
User registration and authentication: Users should be able to create accounts and sign in securely to access the marketplace’s features.
Product listing and catalog management: Sellers should be able to easily add and manage their product listings, including descriptions, images, and pricing information.
Search and filtering: Buyers should be able to search for products by keywords, category, price range, and other filters to find the products they’re looking for quickly.
Shopping cart and checkout: A smooth and user-friendly checkout process that includes a shopping cart, shipping and tax calculation, and secure payment processing is essential.
Ratings and reviews: Buyers should be able to leave ratings and reviews for products they have purchased, which can help other buyers make informed purchasing decisions.
Messaging and notifications: A messaging system that allows buyers and sellers to communicate with each other directly is important for resolving issues and addressing questions.
Order management and tracking: Sellers should be able to manage their orders and track shipments through the marketplace.
Mobile responsiveness: The marketplace should be optimized for mobile devices, as many buyers and sellers will use smartphones and tablets to access the platform.
Analytics and reporting: Marketplace owners should be able to track key metrics like sales, revenue, and customer behavior to gain insights into the performance of the platform.
To make your application use and to gain competitive advantages – you need to ensure that your application should incorporate these features to provide a seamless experience to your customers.
|Features|| Description |
|Voice Search Feature||Voice search is a feature that allows users to search for products or services using voice commands. It is becoming increasingly popular with the rise of smart home devices like Amazon Echo and Google Home.|
|Analytics Feature ||An analytics feature is an essential component of an online marketplace as it helps in tracking and analyzing user behavior, sales performance, and other important metrics. It enables marketplace owners to make informed decisions based on data-driven insights. |
|Inventory Management Feature||Inventory management is an essential feature for businesses to ensure smooth operations. It allows for tracking and managing inventory levels, purchase orders, and sales orders. With this feature, businesses can avoid overstocking or stockouts, resulting in increased profits and customer satisfaction.|
|Security & Authorization ||To build a marketplace, security and authorization should be a top priority to protect users’ personal and financial information.|
To ensure secure transactions, it’s important to implement SSL encryption and PCI compliance. Two-factor authentication and CAPTCHA can also be used to prevent unauthorized access to accounts and protect against fraudulent activities.
|Option to view product videos ||The option to view product videos can enhance the user experience and improve the conversion rate in a marketplace. It allows customers to see a detailed view of the product and its features, which can help build trust and increase sales. |
|Additional window to see all the active promo codes ||Some apps like eBay have an additional window where users can see all the active promo codes. This feature can help attract customers by offering discounts on their purchases. |
Key Steps for Marketplace App Development
Step 1: Define your marketplace concept and target audience
The first step in marketplace app development is to define your marketplace concept and identify your target audience. You need to determine what products or services your marketplace will offer, who your customers are, and what their needs are. Conduct market research to identify your competitors and understand what they offer.
Step 2: Choose a suitable platform
Once you have a clear idea of your marketplace concept, you need to choose a suitable platform for your marketplace. There are various platforms available for marketplace app development, such as Magento, Shopify, WooCommerce, and BigCommerce. Each platform has its unique features, and you need to choose one that best fits your needs.
Step 3: Develop a user-friendly interface for buyers and sellers to easily navigate
A user-friendly interface is crucial for the success of your marketplace app. Buyers and sellers should be able to navigate through your app seamlessly, search for products or services, and complete transactions without any difficulty. Your app should be easy to use, visually appealing, and have clear navigation options.
Step 4: Incorporate essential features like inventory management, payment processing and security measures
Your marketplace app should have essential features such as inventory management, payment processing, and security measures. Inventory management is crucial to ensure that your customers can find the products they are looking for. Payment processing should be smooth and secure to build trust among buyers and sellers. You should also incorporate strong security measures to ensure the safety of your users’ personal and financial information.
Step 5: Integrate a robust search engine and product categorization to optimize user experience
A robust search engine and product categorization are essential to optimize the user experience of your app developer marketplace. Your search engine should be able to provide accurate results quickly. You should also categorize your products or services to make it easier for buyers to find what they are looking for. Proper categorization also makes it easier for sellers to manage their inventory.
Effective marketing and promotional strategies are crucial to attract buyers and sellers to your marketplace. You should leverage social media, content marketing, and email marketing to create awareness about your app. You can also offer promotions and discounts to encourage buyers and sellers to use your app.
Step 7: Continuously update and improve your platform to meet the evolving needs of your users
To ensure the success of your iOS app development marketplace, you need to continuously update and improve your platform. Keep track of user feedback and make necessary changes to improve user experience. You should also stay up-to-date with the latest technology trends to offer new and innovative features to your users.
Step 8: Provide excellent customer service to build a loyal user base and foster trust in your marketplace
Providing excellent customer service is crucial to build a loyal user base and foster trust in your marketplace. You should be responsive to user queries and complaints and provide timely resolutions. You can also offer user support through chatbots or phone support to provide a seamless customer experience.
Read more: Why Smart Searches are necessary in your E-commerce Mobile Application?
Methods To Generate Revenue
Revenue-generating methods are the most existing part which fascinates business owners. We are suggesting some methods that you can opt for to generate high cash in-flow from your online marketplace application:
- Product Sales: E-commerce applications generate revenue through selling products online and earning a margin on each sale, using business models like dropshipping, wholesale, or direct-to-consumer.
- Subscription-Based Revenue: Customers can pay a one-time fee or a recurring monthly or yearly subscription for exclusive content, discounts, or other perks.
- Advertising: E-commerce applications can display banner ads, video ads, or sponsored content to generate revenue.
- Sponsorships: E-commerce applications can partner with companies willing to pay to have their products or services promoted.
- Data Monetization: Valuable data generated by e-commerce applications can be sold to third-party companies for market research, advertising, or other purposes.
- Upselling and Cross-selling: E-commerce applications can generate revenue by offering customers additional products or services related to their original purchase.
- Membership Programs: E-commerce applications can offer membership programs that provide customers with access to exclusive content or services for a fee.
- White-Labeling: E-commerce applications can generate revenue by selling their products or services to other businesses to rebrand and resell.
- Drop shipping: E-commerce applications can generate revenue by partnering with suppliers who handle the logistics of delivering products to customers.
- Product Customization: E-commerce applications can generate revenue by offering customers the ability to customize products and charging a premium for the service.
- Product Licensing: E-commerce applications can generate revenue by licensing their products or services to other businesses or individuals for a fee.
- In-app Purchases: E-commerce applications can generate revenue by offering in-app purchases for additional features or content.
Additional Methods To Generate Revenue
- Referral Programs: E-commerce applications can generate revenue by offering incentives for customers to refer their friends or family to the application.
- Merchandising: E-commerce applications can generate revenue by selling merchandise related to their brand or products.
- Product Rentals: E-commerce applications can generate revenue by renting out their products or services for a fee.
- Gift Cards: E-commerce applications can generate revenue by selling gift cards that can be redeemed for their products or services.
- Influencer Marketing: E-commerce applications can generate revenue by partnering with influencers who promote their products or services to their followers.
- Virtual Events: E-commerce applications can generate revenue by hosting virtual events that provide customers with an experience related to their brand or products.
- Sponsored Content: E-commerce applications can generate revenue by partnering with other companies to create sponsored content that promotes their products or services.
- Gamification: E-commerce applications can generate revenue by incorporating game-like features that incentivize customers to make purchases or engage with the application.
- Wholesale: E-commerce applications can generate revenue by selling products in bulk to other businesses or retailers.
- B2B Sales: E-commerce applications can generate revenue by selling their products or services directly to other businesses.
- On-demand Services: E-commerce applications can generate revenue by offering on-demand services, such as food delivery or home cleaning.
- Licensing Fees: E-commerce applications can generate revenue by charging licensing fees to other businesses or individuals who want to use their technology or intellectual property.
- Dynamic Pricing: E-commerce applications can generate revenue by using algorithms to adjust prices based on market demand, product availability, or other factors.
- Product Placement: E-commerce applications can generate revenue by partnering with other businesses to promote their products within the application.
Read more about: How AR is Visualizing E-commerce?
Before the introduction of tools for “monitoring trends or analytics” – many companies were limited to use only “Microsoft Excel”. However, the introduction of modern monitoring tools is helping companies to gain insight into the current trends.
It is a fact that to make your business successful, you need to effectively concentrate on monitoring current market trends. As the market keeps adopting new trends and your boat needs to be aligned with the changing market trends.
Below tools will help you to understand the current trends and then you need to decide that you need to exact the conclusion according to your prowess:
1. Google Trends
Google Trends is a powerful tool that allows businesses to track the popularity of search terms over time, providing valuable insights into consumer behavior and interests.
By analyzing trends, businesses can identify which products or services are in high demand and adjust their marketing strategies accordingly. Google Trends also allows businesses to compare the popularity of different search terms, identify geographic trends, and even view related search terms.
2. Trend Hunter
It is a paid platform that helps businesses stay ahead of industry trends by providing curated content and market research. With over 18 million monthly views, Trend Hunter is one of the largest and most popular trend websites in the world.
The platform features a team of over 300,000 members who contribute to the site by submitting trend reports and insights. Businesses can use Trend Hunter to identify emerging trends, gain insights into consumer behavior, and stay up-to-date on the latest industry news.
3. Social Listening
Process of monitoring and analyzing social media conversations to gain insights into consumer sentiment and trends. By tracking conversations on social media platforms like Facebook, Twitter, and Instagram, businesses can gain valuable insights into how customers are reacting to their products and services.
Social listening allows businesses to identify customer pain points, track sentiment, and even identify potential influencers who can help promote their brand. This information can be used to inform marketing strategies, product development, and customer service initiatives.
Functionalities To Empower Your Digital Marketplace
For long-term success, it is important for your e-commerce store that your customer retention rate should be good. Every company desires to increase their customer retention rate because it generates recurring revenue for them.
A CMS system is a crucial tool for managing and updating app content efficiently. A mobile app development marketplace requires frequent updates to content, such as product listings, blog articles, and user-generated content. A CMS system allows businesses to update this content easily without having to rely on technical support or developers. This improves the speed and efficiency of content updates and ensures that the app’s content is always up-to-date.
Search Engine Optimization (SEO)
Search Engine Optimization (SEO) is the process of optimizing an app’s content and structure to rank higher in search engine results. For a mobile app development marketplace, SEO is crucial as it helps attract more users and increase organic traffic to the app. By using relevant keywords and optimizing the app’s structure, businesses can improve their search engine rankings and attract more potential customers.
An advertisement module is a crucial revenue generation feature for a mobile app development marketplace. By allowing businesses to display ads on their platform, they can generate additional revenue streams and improve their profitability. An advertisement module can be customized to target specific user groups and display relevant ads, increasing the chances of ad engagement and revenue generation.
Content Moderation (with AI)
Content moderation is an essential feature for any marketplace app development company to ensure that user-generated content meets community guidelines and is appropriate for all users. By using AI-based content moderation, businesses can automate the process of content review, saving time and improving efficiency.
AI-based content moderation can also improve accuracy, reducing the risk of inappropriate content being posted on the platform. Additionally, businesses can use AI-based content moderation to identify trends and patterns in user-generated content, gaining valuable insights into user behavior and preferences.
Specific Payment Gateways that will Suit your e-Commerce Marketplace
PayPal: PayPal is a widely used payment gateway that offers a secure and user-friendly payment experience. It has low transaction fees, and users can pay using their PayPal account or a credit/debit card. PayPal also offers fraud protection and chargeback resolution services, making it a reliable payment option.
Stripe: Stripe is a popular payment gateway that is known for its ease of use and developer-friendly APIs. It supports multiple currencies and offers features such as customizable checkout, recurring billing, and fraud protection. Stripe’s transaction fees are slightly higher than PayPal, but it offers a more comprehensive set of features.
Square: Square is a payment gateway that is best suited for small businesses. It offers a simple and easy-to-use payment interface and has low transaction fees. Square also offers features such as invoicing, recurring payments, and chargeback protection.
Authorize.net: Authorize.net is a payment gateway that is designed for businesses of all sizes. It offers a wide range of features, including fraud detection, customer data management, and recurring payments. Authorize.net has a higher transaction fee than other payment gateways, but it is a good option for businesses that require advanced payment processing features.
Amazon Pay: Amazon Pay is a payment gateway that allows customers to use their Amazon account to pay for purchases. It offers a seamless checkout experience and has low transaction fees. Amazon Pay also offers fraud protection and chargeback resolution services, making it a reliable payment option.
Time and Cost Involved Into Developing the Marketplace
|Stages||Average Cost (per hour)||Time Involved ||Recommended Tools |
|Market Research ||$5,000 to $7,000||4 weeks to 8 weeks ||-Survey Monkey.|
|Business Planning ||$3,000 to $5,000||5 weeks to 8 weeks||– SWOT Analysis.|
-Porter’s Five Forces.
|Design and Prototyping Stage||$5,000 to $10,000||4 weeks to 6 weeks||-Figma.|
– Adobe XD.
-Frontend Development -Backend Development
-AWS Setup (you can take use of any other setup as well)
– Selecting Your Price Model
– Developing MVP model.
– Develop Key Metrics For Your Business
|$10,000 to $30,000||8 Weeks to 12 Weeks ||-React. -Vue.js.|
|Testing & Quality Assurance ||Approx 10% to 15% of the development cost ||4 Weeks to 6 Weeks ||-Selenium.|
|Final Deployment Stage||$2,000 to $4,000||2 Weeks to 4 Weeks ||– Amazon Web Services (AWS).|
Building an e-commerce marketplace involves significant marketplace app development cost and efforts. To ensure its success, it is essential to take post-development actions to promote, improve and maintain the marketplace.
After building an e-commerce marketplace, there are several post-development actions that you should take. These actions can help ensure that your marketplace is successful and meets your business goals.
Test your marketplace thoroughly to ensure that all features are working correctly. This can help identify any bugs or issues that need to be addressed before launching the marketplace.
Next, you should focus on marketing and promoting your marketplace to attract users and generate sales. This can involve creating a marketing strategy and using various channels such as social media, email marketing, and advertising to reach your target audience.
It is also important to regularly update your marketplace with new features and improvements to keep users engaged and interested. This can help ensure that your marketplace remains competitive and meets the evolving needs of your users.
Invest in ongoing support and maintenance for your marketplace. This can help ensure that any issues are promptly addressed, and the marketplace continues to function smoothly. This may include hiring a dedicated team or outsourcing to an app developer marketplace to provide ongoing support and maintenance.
Things to Remember: Statistics on Marketplace
- The first online marketplace was eBay, which was launched in 1995.
- According to Statista, Argentina & Turkey are among the fastest-growing e-commerce market.
- Between 2023 to 2027, Brazil will rank at the 1st position out of 20 countries at the global level.
- eBay was a forerunner in mobile shopping application since 2008.
- In the year 2021, the largest market for eBay was the United States.
- Online marketplaces have faced criticism for their impact on small businesses and for facilitating the sale of counterfeit products.
Retail e-commerce sales compound annual growth rate (CAGR) from 2023 to 2027, by country
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Amplework’s Expertise in Building Marketplaces
Amplework has expertise in service marketplace app development. This includes building platforms that allow service providers to offer their services to customers through a user-friendly app.
We also incorporate experience in integrating marketplaces with a variety of payment gateways including – Stripe, PayPal and Braintree. This ensures that transactions are processed quickly and securely, providing a seamless shopping experience for users.