Let’s imagine that you decide to build an online marketplace. As a technical partner of many firms, we are always asked with the following questions – How to turn a web-based marketplace app like Amazon, Etsy or Airbnb into reality? Next, How much does it cost to create a successful marketplace website? How to choose the right technology stack for your own marketplace? Or, what features exactly does your online marketplaces need?
The digital marketplace platforms has grown rapidly. In 2018, online sales of goods in the US totaled $504.6 billion, and predicted to exceed $735 billion in 2023. The achievements of P2P marketplace are indisputable. Thus, more and more people consider starting their own e-commerce website.
In fact, the average cost to of building an online marketplace depends on the option you choose. In this article, we’ll give you full estimated marketplace web development cost, which is most likely to bring you revenue. If you want to develop web-based marketplace, firstly you need to know what is the tech stack for building a marketplace website!
Table of contents
- Technology stack for building an online marketplace
- Core features for MVP marketplace
- How much does it cost to build a marketplace website?
Technology stack for building an online marketplace
Building a marketplace MVP with must-have features? Most likely, you’d want to add in-app search(technology: Elastic Search), payments (Braintree, Stripe), and instant messaging (Firebase). The technology stack we use to create a marketplace website depends on a marketplace’s specifications. But we typically use the technologies listed below for marketplaces:
- Express 4
- Amazon SES
Keep in mind that we listed only core frameworks and preprocessors, and the stack usually includes more technologies. The technology stack may also change should we consider other frontend frameworks.
Core features for MVP marketplace
No matter what kind of online marketplace you want to set up, there are two main components you’ll need – user platform and admin panel. The Administration board controls the inventory of products, customers, orders, payments, etc,… At the same time, the user panel includes item listing, search engine, shopping cart, reviews and testimonials as well as payment features and shipping function.
Obviously, without these main features, your P2P marketplace may be hard to give an experience of safety and comfort for customers. The sooner you make your online website marketplace, the sooner you define what to approach. You should also remember that the first impression is very important. In order to help you build a successful marketplace, we present you 9 essential marketplace characteristics.
1. Easy registration process
If you want to create a fully online marketplace, each should sign up and provide personal details such as name, gender, date of birth, email, phone number and so on. Moreover, letting users sign up via social platforms is a simple way of registering. Privacy settings like not to share their activity on Facebook is also important.
Consequently, an e-commerce marketplace website should have:
- Email address, first name and password
- Or sign up via Google, Facebook
As a matter of fact that not every marketplaces provide an easy registration process to customers. Then, this is one of the main reason why your marketplace app has counted many uninstall.
So, in order to keep visitors into potential customers, you should create the registration as easy as possible!
2. User profile
Every P2P Marketplace MVP has 2 roles: customers and publishers. So, making an account as detailed as possible is must-have feature. For instance, visitors can easy signup and see the provider’s information. Sellers should manage clearly all the inventory data and change settings for public information.
In summary, an online marketplace for visitors will be able to:
- See detailed information about customers and sellers
- Update profile including delivery address, payment method, change password, etc,
- See order history or order in process
And, publishers can:
- Change account settings like company name, phone number, address
- Add link to social media, ratings/ reviews
It’s always worth to customize your homepage! One thing all customers want to see is a clear navigation system (from price range to location, etc.). Don’t forget about user experience UX/UI design. Without further ado, check these tips and make your online marketplace MVP look awesome:
- Simple navigation, personalized search box and beautiful image on web
- Add last watched products to help customers buy faster
- Another, add list of popular products
- Or, testimonial section telling to develop trust among the visitor
4. Manage listings (for sellers)
In addition, adding list is essential function for supplier. Once customers visit your website, the managed listing of products or services will give them better experience. Online marketplace site visitors will need:
- Filter listings of products
- Listing search
- Detailed information about listing
While sellers site will need:
- Add a new listing
- View, remove, manage product listings
- Publish or draft a listing
5. Flexible payment system
The payment system automatically calculates the quantity of charges. Additionally, seeing payment history is necessary for customers. Providing multiple payment options is also beneficial to your futures buyers. Your online marketplace should require users pay with credit cards, PayPal, some other payment method, or even with cash.
Plus, let them manage:
- Payment details: transaction history, the quantity of services and normal payment
- Manage payment technique: add, remove, update payment method
6. Payout (for publishers)
If in the previous part we’ve discussed the payment system for customers, then what about publishers’? In general, both buyers and sellers should be secured when shopping on an online marketplace web.
Your multi-vendor eCommerce marketplace must let publishers recover their earnings. They need to:
- View payout details like amount earned
- Add or change payout method
7. Booking management
Once customers purchase products, they will need to know when the item arrive. This system also offer users to book product that they are interested and return to purchase it. Furthermore, buyers can check a temporarily out of inventory item.
The booked listing for customers is able to:
- View all information about booked listing
- Check the price, fees, discounts, payment options and add comments
Then, publishers are also able to:
- View all the orders that have been booked
- And detailed information about each booking
8. Reviews and ratings
To build trust between buyers and sellers, each product details should have descriptions, price, availability status, and ratings/ reviews option.
With this functionality, an online marketplace site for customers can:
- See listing of rating and comment
- Write and update reviews/ ratings
What about publishers?
- Send requests for rating and comment about products
- Accept or deny reviews from customers
9. Admin panel
Last, you will need to have an admin operation to manage both buyer and seller’s account. This following features are needed for the online marketplace admins:
- Product catalog: not only be easy for sellers, also simple for admin to manage various stores
- Product review management: also helps admins by creating a revenue channel
- Report and data: from analyzing sales reports to make better recommendations for customers
How much does it cost to build a marketplace website?
Finally, it’s time to estimate the cost of building a marketplace MVP. We’ve given you the tech stack of online marketplace and main features of marketplace app, too. After all, the cost of P2P marketplace website depends on number of functionality you want to add. Not only that, the time estimate by software developer is an another important factor.
Now we calculated the development time for an online website marketplace.
There are one more thing you should consider is the web development cost of the software outsourcing company that you partner with. Here’s the simple cost calculating formula that you can use figure out the cost of a marketplace website for your business:
Formula of Website Development Cost
Development time x Hourly rate = Total Web development cost
Next, let’s check out the different hourly rate according to countries:
- In Eastern Europe: $20-$50/hour
- Vietnam Software Development Company: $10-$25/hour
So if you hire a outsourcing software company in Vietnam, the total cost will be: $7,000 – $17,500.
If you’re still wondering how much does it cost to build an online marketplace, AgileTech team is here to help you. In fact, websites or Mobile Apps that we built helped businesses find a better solution for managing and boosting sales. An this Marketplace Thailand – B2B eCommerce Marketplace is one of our products.
By providing multiple needs and services, AgileTech is here to ensure your technology project as a successful element of your omnichannel strategy. We have expert Project Managers along with excellent teams who have delivered the best products to customers in more than 10 countries, namely the U.S, U.K, Germany, France, and Singapore.
As a leading mobile development company in Vietnam, we have huge experiences in many fields including e-commerce, car-sharing platform, health care, Livestream and many more. Our dedicated software development team is ready for your custom requirements. You can contact us at firstname.lastname@example.org or via (+84) 936 281 059 for more information.
Want to build your own Marketplace?
Our dedicated development team will help you build online marketplace. At AgileTech, we start projects from defining a business strategy and applying technological solutions.