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How to Build an Online Marketplace: 5 Easy Steps of Creating a Marketplace

Once upon a time, we had to transport to a physical store or market to purchase whatever we wanted. But now, the goods and services are always available with a few clicks and scrolls. It is the age and time for online marketplace services. Internet marketplace platforms are now the rave of the moment and there is a huge opportunity therein. You can create your online marketplace with the best marketplace development company.

Let me treat you to some figures before we deal with how to start an online marketplace. In 2021, Amazon made a net sale of over $469 billion according to statistia. The income of Amazon in this period was reported to be over $33.3 billion. There are also over 2.6 trillion investments in online marketplaces. These figures show that the Internet marketplace space is so fertile. You can start with Facebook marketplace, here is how to get Facebook marketplace.

Online marketplace services are booming because people love it for the convenience, ease and reduced price. Are you thinking about how to create online marketplace? We have put together this article to make the process easy for you. Here are 5 easy steps to create online marketplace:

1. Discovery Phase

Building a marketplace starts with the discovery phase. It is at this stage that the solid foundation for the online marketplace success is laid. One of the important activities of this stage is in-depth analysis and research. The idea to build a marketplace must be subjected to deep thoughts and analysis. The current competitors must be looked at carefully to gain tangible information.

At this stage of how to start an online marketplace, the goal of the project is well designed. Having a clear goal will help the journey into success. There must be a clear need or problem that the marketplace will address. It is the discovery phase that the question of value offering will be answered. There are diverse types and models to Internet marketplace, it is at this stage that the decision will be made as to what type to build.

2. Understand your costs

Cost analysis and projection is an important step in any product development journey. You have to decide on the project budget. Based on the functionalities and the type of marketplace you want to build, there will be several contributors to the final cost. This is because several experts are needed for the final delivery.

As a brief, you have to estimate the cost for the following:

  • UI and UX designs
  • Coding of the frontend and backend
  • Hosting cost
  • Quality assurance
  • Technical Support
  • Marketing and Business Development cost

One factor that must be considered when analyzing cost is the location of the development team. Location has a big impact on the cost. An average web developer in the US charges $100 per hour while an Ukrainian developer charges about $45 per hour. The cost must be carefully projected to ensure adequate preparation for the project.

3. Business Development Stage: Marketplace MVP

You must create a marketplace that meets the need of your customers. There are a good number of online marketplace already, and you must have a good marketplace strategy to win over competitors. It is then necessary to first create a marketplace MVP. This marketplace strategy helps you to test the waters before going full length into it.

The marketplace MVP is the minimum viable product which is a simple model of your online marketplace that solves the basic need of your customers. This simple product will be able to attract early customers and give you invaluable insight into how the full fledge platform will work. It is a good business development tool that will help you in building a marketplace that will be loved.

4. Software Development

There is no creation of online service marketplace without software development. Create online marketplace with an expert and reputable online marketplace development company. It is important to get the right software development company for the job, though it may be a rigorous process. The right team will be able to build a simple but formidable platform that will succeed in the market.

The software development team must pay attention to all the details in the software requirement. The team must work in a way that the progress will be monitored and there’s a good ground for feedback. The software development involves the use of the best programming language to write the codes for the backend and frontend. Make sure that the best methods are used to incorporate feedbacks and all functionalities are in place.

5. Attract Buyers & Sellers

Finally, it is time to attract users to your online marketplace. There is no need for creating a marketplace without having Sellers and buyers come use the platform. So how do you get the buyers and sellers attracted? A marketplace strategy that attracts users is to use ads. Place ads on Facebook, Instagram, Google and other ad platforms to attract both sellers and buyers to your platform.

Another means to attract users is to collaborate. You can organize a well planned launch event where you get celebrities to influence for your platform. Send out invite to prospective sellers and buyers to attend the event. You should also pay attention to a robust content marketing strategy. Have a good SEO and digital experts to get your marketplace in the place that people are looking. You need to appear in searches to get more buyers and sellers.

Conclusion

How to start online marketplace begins with getting the right information. And we believe you have been well informed with this piece. Building an online marketplace takes time, money and effort but all of these will be inconsequential when the right things are put in place.

First, adequate research must go into the discovery phase and that must be followed by cost analysis and business development processes. The MVP design will aid the building process. Finally, ensure to hire a competent online marketplace development company. Don’t forget to keep attracting more sellers and buyers to your platform.

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