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How to Create a Marketplace App to Connect Sellers and Buyers?

Red Rocket team
Red Rocket teamJun 19, 20246 min read
The question that interests thousands of investors around the world in 2024 is what business area to invest money in to get a stable passive income. Obviously, you can choose crypto exchanges, gaming applications, but marketplace apps deserve special attention. Why exactly this direction? This way, you connect buyers and sellers on one platform, guaranteeing the simplicity and reliability of the transaction. You don't need to invest in purchasing goods and spend large amounts of money for storage in the warehouse.
We will answer today the main question of many people - how to launch a marketplace app in the easiest way. We have prepared for you a lot of useful information, examples and step-by-step guide on building an online marketplace.
How to Create a Marketplace App to Connect Sellers and Buyers

Key Takeaways

  • Marketplaces, unlike online stores, involve not only buyers but also sellers on the platform.
  • The marketplace application serves as an intermediary between the seller and buyers for a safe and convenient online transaction.
  • The e-commerce industry is growing by 15% every year.
  • A quality marketplace app should include all the necessary features for both buyer and seller.

Fastest-Growing Marketplace Niches In 2024

Identifying the fastest-growing niches is crucial for building an online marketplace that resonates with users and stands out from the competition. Let's explore the most popular niches for marketplace apps in 2024.

Technical appliances

Product sites have always been the most demanded in the past and will be popular in the future. Certainly, fashion, home goods, and cosmetics are niches that many people are interested in. However, buying appliances is something that it is hard to imagine the modern life of any person living without it. The global e-commerce market is predicted to reach 6.3 trillion dollars by 2024, with marketplace applications accounting for a significant portion of this growth.

Taxi

Each of us has installed taxi apps at least once. The service markets, especially in the taxi and delivery industry, have experienced explosive growth in recent years, and this trend shows no signs of slowing down. Apps like Uber and Bolt have dominated the ride-sharing market by providing convenient transportation solutions. Such a niche is actively growing today despite a lot of competition in this area of business activity.

Travels

Travel marketplaces have revolutionized trip planning and booking, offering everything from accommodations to experiences. The success of such apps is simple - consumers no longer need to spend a lot of time planning their journeys. Just visit a marketplace, select the desired city, choose the required city, choose the desired hotel or apartment, pick a plane ticket, and it's done. All that's left is to pack your bags and wait for your trip. As the travel industry recovers from the pandemic, travel marketplaces are ready to grow to meet the demand.

Marketplace Apps That Everyone Knows

When considering how to create a marketplace app to connect sellers and buyers, it's crucial to study the successful examples already dominating the market. Let's explore three of the most well-known e-commerce platforms.
eBay

eBay

We start our list of the best marketplaces with the biggest player on this market. eBay is a pioneer in the e-commerce space, having revolutionized the way people buy and sell items online since its inception in 1995.
  • Over 180 million active buyers worldwide.
  • Operates in more than 190 markets globally.
  • Generated over $10 billion in revenue in 2023.
  • eBay's auction-style listings, diverse range of products, and robust buyer protection policies set it apart.
Aliexpress

Aliexpress

Today, there is most likely no person who has not heard of the famous marketplace Aliexpress. Chinese company Aliexpress, a subsidiary of the Alibaba Group, is another giant in the e-commerce world, particularly known for its vast array of products at competitive prices.
  • More than 150 million active buyers.
  • Serves customers in over 200 countries and regions.
  • Part of Alibaba's impressive $130 billion annual revenue.
  • Aliexpress is renowned for its low prices, extensive product range, and direct-from-manufacturer sales model.
Booking

Booking

Of course, we just have to include a travel marketplace used by people from all over the world. Booking.com is a leading marketplace for travel accommodations, offering a platform for booking hotels, apartments, and other lodging options worldwide. What are the key features of Booking?
  • Over 28 million active listings.
  • Global presence with a strong foothold in Europe and North America.
  • Part of Booking Holdings, which reported over $16 billion in revenue in 2023.
  • Booking's user-friendly interface, extensive customer reviews, and flexible booking options distinguish it from competitors.
By examining these successful e-commerce apps for sellers and buyers, we can identify key characteristics and strategies that contribute to their success. Understanding these elements will be instrumental in developing a marketplace app that attracts and retains users, ultimately leading to a profitable and sustainable business.

Key Features of a Successful Marketplace

Create a marketplace website is not an easy process that needs to be approached with great attention to detail. The most important details are the characteristics of the marketplace application that must be implemented into the system. They will differentiate your site from your competitors, making your site attractive to both buyers and sellers. Although every business should have its own specialty and differences, there is a set of features that every marketplace app should have in 2024. We have gathered only the most important features.

1. User and buyer's personal cabinet

Naturally, it all starts with user registration. Here it is necessary to add such mandatory fields as the choice of party on the marketplace, name, phone number, country, city and e-mail confirmation. On the basis of these data, a personal user account should be created where the user can change information or settings.

2. Convenient catalog of goods or services

No marketplace can be built without a wide catalog of goods or a range of available services. The best option is to make a separate tab where you can see everything that is offered on the site.

3. Search bar and filtering option

Despite the availability of the catalog, you need to add the ability for users to search for necessary goods or services on their own. Also, pay attention to the possibility of filtering the search. Why is it necessary? Users are more likely to stay on the platform if they can easily navigate through the listings. Advanced search and filtering options improve user satisfaction and increase conversion rates by making the shopping process more efficient.

4. Available ratings and reviews

The best way for a customer to be sure of the right choice is to look at the real experience of other customers. So, when starting a website to sell products, add the ability to leave comments and rate products or services. However, you need to set limits here. For example, allow only identified users to leave comments to eliminate unfavorable competition and unfair reviews.

5. Order details and tracking

Once a customer has placed an order and made payment, they want to know as many details about their order as possible. Providing detailed order information and real-time tracking enhances the user experience by keeping buyers informed about their purchases. Why is it necessary? Transparency in the order process reduces buyer anxiety and improves satisfaction. Real-time tracking allows buyers to know exactly when to expect their deliveries, which enhances trust in the platform's reliability.

6. Uninterrupted communication between buyer and seller

The best and easiest way to ensure uninterrupted communication between seller and buyers is to create an internal chat room that will always be available to both parties. Once the transaction is opened and payment is made, a chat between the seller and the buyer is automatically created and will be available until the end of the transaction. In this way, the seller can find out the desired information about the product or service, as well as try to solve potential problems with the order on their own.

Tech Stack for Marketplace Development

The choice of technical tools determines how quickly and correctly the desired marketplace will be created. Good developers know which tools are best to use to create a marketplace in 2024. We have gathered specially for you the best tech stack for marketplace app development. Let's understand it in detail together!
  • React.js and Node.js. Such powerful tools are usually used to create web applications. What are the main advantages we can highlight? Definitely, it is high performance and speed of work.
  • Electron.js. While building a desktop marketplace app, you need to know many nuances and peculiarities. Electron.js helps in the most convenient way to develop marketplaces for desktop version of usage. It is compatible with Windows and macOS.
  • React Native. Many developers have already seen that you can trust React Native to create a mobile marketplace app. It allows you to create software that is supported on both Android and iOS operating systems.
Choose a tech stack based on what kind of application you want to get and what your main goals are.

7 Steps to Build a Marketplace App

Creating a marketplace app involves several critical steps, each of which is necessary to ensure the success and sustainability of your platform. After reading this unit, you can learn how to make a successful marketplace app.

1. Choosing the right niche

The first step to develop an app is to choose the field of activity and the type of app. Think of an idea of what you would like to do. As we said, relevant niches today include tech, taxi, delivery, and travel. Once you have decided on a niche, you need to conduct research between sellers and buyers to find out what kind of app they want to see.

2. Choosing a business model (monetization)

Deciding how your marketplace will generate revenue is crucial. Several monetization models can be implemented:
  • Transaction fees. Charging a commission on each transaction between buyers and sellers.
  • Subscription fees. Sellers pay a recurring fee for using the platform.
  • Listing fees. Charging sellers for posting new listings or promoting their products.
  • Advertising fees. Selling advertising space on your platform to generate additional income.

3. Choosing the functionality for your app

Based on the idea of your future marketplace, write a list of necessary features of the application. For example, you should be sure to add here a personal user account, a catalog of goods or services, search filtering, and other «must-have» features. Defining these features early on helps in creating a marketplace app that meets user expectations and provides a seamless experience.

4. UI/UX design

Move on to design development. At first, it may not seem that important. But actually, UI/UX has a big impact on platform guests. A well-designed UI/UX ensures that users can navigate your app easily, find what they're looking for, and complete transactions without frustration. Investing in good design increases user satisfaction and retention.

5. Technical toolset

We've already covered and described today what technical tools you might need to create an online marketplace. Actually, you can go beyond these options and create your own tech stack. There are many technical tools available today for such purposes.

6. Coding

The coding phase is where your app comes to life. It involves turning your designs and specifications into a functional product. Why is it essential? This stage requires skilled developers to implement the features and functionalities of your app. At Red Rocket, we specialize in marketplace app development and can help you create a marketplace website and app from start to finish, ensuring a high-quality product.

7. Launch and maintenance

After the application is already at the finishing stage, it should be tested necessarily. This will help you to see existing errors in time and quickly eliminate them. If you think that after launching the app, you can go on a well-deserved vacation, it is not so at all. Any platform for selling goods requires regular updates and basic maintenance.

How much does it cost to develop a marketplace app?

Considering the question of how much does it cost to build a marketplace app cannot be answered in a few words. Why is it so? The final app development cost and wastage directly depend on several factors, including:
  • Functionality and features. The more tricks you want to implement, the higher the final cost will be.
  • Design requirements. If you don't want to overpay for a design, you can choose a basic design from ready-made templates.
  • Development team. Developers usually work for an hourly rate, which can vary depending on the experience of the professionals.
  • Platform. The cost also depends on the platforms on which you want to launch your online application.
  • Maintenance. Keep in mind that the app requires regular maintenance, which you also have to constantly pay for.
As you have already realized, building an online marketplace can include costs for different points. Statistics show that a good marketplace app in 2024 will cost you from 50 to 90 thousand dollars.

Frequently asked questions

What are the essential features of an e-commerce app for sellers and buyers?

An e-commerce app for sellers and buyers must include several key features to ensure a seamless and efficient user experience. Essential features include user profiles, which allow buyers and sellers to manage their accounts, view transaction history, and save preferences.

How do I choose a business model when starting a website to sell products?

Choosing the right business model is crucial when starting a website to sell products. You can consider several monetization models. Transaction fees involve charging a commission on each transaction between buyers and sellers, a widely used approach in many marketplaces. Subscription fees require sellers to pay a recurring fee for using the platform, which can be structured as monthly or annual payments. Listing fees involve charging sellers for posting new listings or promoting their products, which is effective for marketplaces with a high volume of listings. Lastly, advertising fees allow you to sell advertising space on your platform, generating additional revenue from sellers or third parties looking to promote their products or services.

How long does it take to develop a marketplace application?

Marketplace application development time can vary widely depending on several factors. As practice shows, on average, it takes about six months to finally launch a marketplace app.

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