Would you like to create a platform like Amazon, eBay, or AliExpress?Amazon was started in a garage and has grown to become the second biggest brand after Apple.The company became the most visited marketplace in the US.The e-commerce sphere is becoming more profitable year over year, and many people want to take a bite of it.What is it that it takes to develop such a project?
Step 1: An online store and an online marketplace are different.
An online marketplace is an e-commerce website on steroids.Independent sellers can list their products and services on marketplaces.Monetization is one of the major differences you have to be aware of.Direct purchases are the primary source of income with an online store.New streams of earning money can be opened by owning a marketplace.There is a number of sellers.A single seller is the online store owner.The owners of the marketplace don't need to sell anything.Vendors can make money by selling their goods.There is a variety of products.Products from different industries are included in the marketplace.Amazon has over 12 million products.There are a lot of features.The online store has an admin panel and a customer profile.There is an admin panel to manage users, a seller profile to list products, and a buyer profile that adds products to a shopping cart.A tech stack.You can use e-commerce platforms to build a website.The platform capacities wouldn't be enough to build a large marketplace.
Step 2: The market can be analyzed.
It's important to conduct market research if you want to own a successful marketplace.It's important that your platform will solve painful problems for both clients and vendors.People had to pay for taxis that were inconvenient to find.Those problems were solved by the company.Is your idea helpful?Determine who your ideal customer is.A name, age, gender, and demographic are needed to build a avatars.Understand the pain points of your ideal customers.Find out what your competitors are doing.It is important to understand what kind of competition you will face.Discuss your idea with people and get feedback on it.
Step 3: You can choose the type of marketplace.
There are different marketplaces depending on the business model.A vertical marketplace is focused on a specific category.Airbnb is a vertical marketplace that offers apartments and houses for rent.A wide range of products and services can be found on horizontal marketplaces.A one-stop-shop is what these platforms can be described as.An example of a horizontal marketplace is Amazon.All over the world, global marketplaces target relevant customers.A wide range of handmade products and craft supplies can be found on the website.The type of participants.Business to clients, B2B, and P2P are marketplaces.Individuals and small businesses can buy and sell on B2C marketplaces.There are examples of Amazon and TaskRabbit.B2B marketplaces are used to buy and sell products.RapNet and B2B are examples.Individual sellers and buyers can be found on P2P marketplaces.There are some good examples.There are products offered.What value will your users give you?Those who need repairing, transportation, or apartment rentals can find services marketplaces.Such platforms as TaskRabbit and Upwork are examples.The most common type of e-commerce platform is a product marketplace.The key players are Amazon and eBay.Crowdsourced funds are arranged through projects marketplaces for startup projects.Both services and products can be found on hybrid marketplaces, such as OLX.Authority.You have to decide if your marketplace will be centralized or not.A centralized marketplace is managed.Pricing, customer support, vehicle locations, and driver verification are just some of the things that Uber controls.Decentralized marketplaces connect participants and make transactions.eBay decentralizes pricing, reviews, transaction terms, and communication.
Step 4: You can choose a model.
There are six models to choose from.Every successful transaction costs a percentage or fixed fee.It is one of the most widely used models in the world.A subscription fee.Users pay a yearly fee to use the marketplace.This kind of monetization is used by Amazon Prime, Netflix, and Google Play Music.There is a listing fee.Providers posting new listings are charged a fee by marketplaces.An example of this model can be found.There are some featured listings.Providers have to pay if they want to be featured on the home page.The model is used by Gumtree.There is advertising.Users don't have to pay since ads generate revenue for the service.Couchsurfing makes money by displaying ads in their community.It is free.Premium features on the marketplace are paid.
Step 5: Decide on the function.
Profiles contain all the necessary information about suppliers and buyers.navigation is easier with advanced product search.Customers should be able to find what they're looking for.Buying and selling within the same user account can be done with a switch profile type.The product page should give comprehensive information about each item, including description, price, high-quality photos, availability, warranty, delivery info, etc.Good descriptions help buyers.Customers are helped by reviews to make well-thought purchasing decisions.You can add features to make sure reviews are honest, but only if you are a registered user.A shopping cart is a place where buyers store their purchases.Customers need to be able to change their purchases.Customers can save items they are likely to buy on a wishlist.Checkout is easy.It is possible to reduce checkout abandonment by making it very easy.Make payments without signing in, show payment security proof, and minimize the required fields.Customers can choose the payment method that suits them the best.Consumers can choose the most convenient delivery option with shipping.Order reports allow sellers to view reports on their orders.Users will be able to get real-time order status updates.Many processes are accelerated by notifications.You get a notification, click on it, and move to a different page.Both buyers and sellers can keep their fingers on the pulse with this.The details of products, shipping, and other items can be discussed in messaging.It's possible to attract users by providing meaningful content.
Step 6: Understand your costs.
The cost will be influenced by developers location and rates.The average hourly rate of a web developer in the USA is more than $100 per hour.The rates are lower in Eastern Europe.You will be charged around $25-40 per hour if you choose to work with a Ukrainian software development company.When estimating the budget for your project, take into account expenditures such as manual and automation tests.
Step 7: The user interface/UX design should be created.
The client should not be repelled by complex algorithms.Your marketplace should be easy to use.The design should reflect the brand's personality.The information hierarchy can be planed with wireframes.How will customers find the shortcut to their goals?Remove anything that doesn't support the goal of the page.Prototypes can be turned into your wireframes.A website gets just 5 seconds to impress visitors, so set great expectations at the top of the screen.It's important that information is easy to consume.
Step 8: Software developers can be hired.
It can be difficult to find the right company for your project.Clients can monitor progress and look for developers that use an Agile methodology.There are three main options: a software development agency, an in-house development team, and freelancer services.Some tips can be found here.Go to the market.There are platforms that can help you with this.In terms of pricing and technical expertise, choose a region that suits you the best.Pick a company that works best for you.You can browse portfolios to see marketplace solutions created by companies.You can check out customer feedback.The team should be Interviewed to check their technical expertise.
Step 9: You can choose the technology stack.
You will get low page loading speed with the wrong tools.Take into account the tech stack that will be used.The front-end technology stack is the part of the website that users interact with.The back-end technology stack is the part of the website or application that isn't visible to users.
Step 10: The MVP should be created.
If your product doesn't meet demand, you'll spend a lot of time and money.Minimum viable product is the best option for working on a massive project.The core problem of your target audience is solved by this solution.The first version ofAirbnb was a plain website with a few listings.It launched a simple website, not the fancy app it uses today.Potential customers can see your platform idea and give feedback.More sophisticated features can be added if it takes off.According to the new data, the development team will adjust the process.Which features should be implemented in your MVP?Profiles for buyers and sellers are the absolute minimum.
Step 11: Make a Minimum Lovable Marketplace by launching with a bang.
If you want your ideal customers to see your launch, make sure it's covered.The field of e-Commerce is very competitive.Users will fall in love with a Minimum Lovable Marketplace.How can you build it?Find out what your first users like and don't like by launching as quickly as possible.Do you have a way to make them obsessed with your marketplace?There are more people that love your marketplace if you find 100 of them.First, be sure to plan for those 100 people.
Step 12: It is necessary to attract sellers.
Similar marketplaces and other relevant platforms are where contact vendors are active.Online and offline resources can be used to connect with them, such as business directories, trade associations, networking groups, and online forums.Make a portrait of your ideal seller.If you want to beat competitors with your offer, research them.If you want to show your sellers' success, you should establish a blog or a forum.If you take a personal approach, you can convince companies to join your platform.Show your infrastructure and tool set advantages.
Step 13: It is necessary to attract buyers.
Take a look at the core techniques to get new customers.Understand who your potential early adopters are and where they hang out.You can participate in the discussions mentioning your marketplace by joining their groups.It's a good idea to get well-known bloggers to advertise your marketplace.Promote traffic with ads.Email addresses of potential buyers should be collected.There is a way to build a pre-launch landing page.The community can be created through social media.Offer discounts can be used to get more people to buy.
Step 14: Grow your market.
It's important for both sellers and buyers to start the transaction turnover.A marketing strategy is needed.Search engine marketing, pay-per-click, social media, content marketing and email marketing are some of the ways you can attract users.