How to Build a Marketplace App: An Ultimate Guide in 2023Home App Development build a marketplace app By Rakesh Patel Last Updated: April 21, 2023 Do you want to increase your business’s brand awareness and visibility? Are you looking to establish your business on digital channels?One of the best ways is to build a marketplace app for your business. Taking your business online increases the chances of your growth and sales as you serve a worldwide audience.As a business owner, if you are looking to create a marketplace application from scratch, you have landed on the right blog post.We know the online marketplace industry is challenging and tough due to large competition with top marketplace applications like Amazon, Etsy, and Wish. However, the right approach to developing a mobile application plays an important part in establishing your business.In this blog, you will learnGrowth of online marketplace appsThe complete process of marketplace app developmentCost of building a marketplace appTimeline to build a marketplace appTypes of monetization strategiesTechnology stack for developmentSo, let’s get started.Table of ContentsContinuous Growth of Online Marketplace Apps8 Different Types of Online Marketplace ApplicationsHow to Create a Marketplace Application from Scratch: 6 Steps ProcessHow Much Does It Cost to Build a Custom Marketplace App?How Long Does It Take to Develop a Marketplace App?5 Top Online Marketplace Mobile Apps in the USA and CanadaFAQ During Online Marketplace Apps DevelopmentLet’s Create Your Own Marketplace AppBefore learning the process of building marketplace apps, first, let’s know the opportunity and growth of the online marketplace.Continuous Growth of Online Marketplace AppsHere is a list of statistics on online marketplace apps as well as on MCommerce to help you understand the current market scenario.According to a report by InsiderIntelligence, the US market of eCommerce sales is estimated to reach $468.29 billion by 2024 compared to $357.26 billion in 2022.According to a survey by DigitalCommerce360, a total of $3.23 trillion was spent globally on the top marketplaces in 2021.Online marketplace payments are estimated to reach $8.7 trillion by 2025, as per a survey of Finextra.By 2026, MCommerce sales in the USA are estimated to increase by 8.7% of total retail sales from 6.5% in 2023, according to InsiderIntelligence.These statistics show a positive sign to investing in marketplace app development for your business. As online shopping via mobile applications increases in the future, the opportunity to establish your business in the online marketplace industry seems to be beneficial. Let’s now learn the type of marketplace applications available for development.8 Different Types of Online Marketplace ApplicationsThere are multiple types of online marketplace applications available in the market. Depending on your business, choose the right types of marketplace application development. If you are not sure in which categories your business falls, here is a table that explains the types of marketplace applications with examples of applications.Types of Marketplace AppExplanation of Marketplace TypeExamples of ApplicationseCommerce MarketplaceAn online platform that connects buyers and sellers to sell and purchase physical goods and commodities.AmazonWishAlibabaService MarketplaceAn online platform that connects buyers and sellers who provide services like freelancing, consulting, and tutoring.UpWorkFiverrPeoplePerHourPeer-to-Peer MarketplaceAn online platform that allows transactions between individuals without involving intermediaries.AirbnbUberEtsyB2B MarketplaceAn online platform enabling businesses with other businesses for the purpose of buying and selling goods and services.AlibabaeBayNiche MarketplaceAn online platform that is specifically fulfilling the needs of specific niches or vertices, such as vintage clothing or handmade crafts.PoshmarkEtsyC2C MarketplaceAn online platform that allows individuals to connect, buy, and sell services or products directly without the involvement of any third-party service.PoshmarkOfferUpLetgoRental MarketplaceAn online platform that enables individuals or businesses to rent out their services or assets to other people online.TuroAirbnbRent the RunwayHybrid MarketplaceAn online platform that is a combination of multiple types of marketplace applications into a single platform.AmazoneBayThese are the core types of marketplace apps currently available in the market. In whichever category your business falls, create your marketplace application. Choosing a type of marketplace is essential as it impacts the whole process of development. That’s why selecting the type of marketplace application or deciding which type of marketplace application you want to create is very important.Moreover, you can contact an experienced mobile application development company like Space-O. Consulting such an app development company helps to build a foundation for your mobile application and clear your doubts.Want to Develop a Custom Marketplace App?We are a leading mobile app development company, having a team of experienced mobile app developers who are skilled in Java, Swift, React Native, and Flutter. Book Your Free Consultation Now, let’s learn the process of developing a marketplace application for your business.How to Create a Marketplace Application from Scratch: 6 Steps ProcessFollow these 6 steps for your online marketplace app development.Conduct Market Research for Your Marketplace ApplicationBefore developing your marketplace, you need to identify your target audience, learn about market trends, and understand the preferences of your target audience. To make a successful marketplace application, you must have the following information:Identify your niche and determine the services or products you will offerFind the right business model to meet your revenue goalsKnowing your target audience and their requirements and preferencesChoose the right mobile app platform for your marketplace app developmentFind the pain points that you will resolve in your mobile marketplace appLearn what type of user experience and user interface with proper navigationIn short, having a clear idea of what type of application you want to build makes the entire development process easier.But, how do you find out all the details for your marketplace application development? Here are some tips to help you out.Perform market surveys and gather data based on your user preferences, demographics, and behaviour to identify your target audience.Analyze your competitors and know about their target audience as well as your competitor’s weaknesses and strengthsCreate a user persona by making a detailed profile of your ideal customer with information, such as age, gender, occupation, interests, and pain pointsDefine your unique selling point to advertise and establish your application in the marketUse social media tools for identifying your target audience by collecting data on user behaviour, preferences, and demographicsAs much as you are clear about the type of mobile application you want to have for your business, it would reduce the cost and timeline of your development. Next, you need to decide the business model you want to include in your custom marketplace application development.Choose the Right Business Model for Your Marketplace AppMultiple types of business models are available in the marketplace application. Check the following table to learn about the different types of business models. Learn about each business model and choose the best suitable for your marketplace application.Business ModelDefinitionExamplesCommission-basedThe marketplace takes a percentage of each transaction made through the platformAirbnbUberEtsySubscription-basedCustomers to pay a certain amount to gain access to the marketplace, usually, on a monthly or yearly basisAmazon PrimeSpotifyFreemiumThe basic version of the platform is free, but users can pay for premium features or servicesDropboxCanvaHootsuitePay-Per-UseUsers pay for each transaction or service they use on the platformTaskRabbitFiverrUpworkAdvertising-basedThe marketplace generates revenue by displaying ads to usersFacebookGoogleLinkedInListing-basedThe marketplace charges a fee for listing items or services on the platformeBayCraigslistLetgoDepending on your type of marketplace mobile app development. You can choose the right business model for your business. However, modern marketplace applications implement multiple monetization models in their business to generate revenue. For example, the Amazon application uses two business models, such as the subscription-based model and the advertising model.However, if you are unable to decide on the right or most suitable business model for your marketplace application, here are key tips to help you.Analyze your competitors to find out their monetization strategiesUnderstand the demographics of your audience and choose the right business modelEvaluate the revenue streams to find the best ROI-providing business modelContact an experienced mobile application development for consultationMoving further, let’s decide the features for your marketplace application.Choose Features You Want to Integrate into Your Marketplace ApplicationAt this stage, decide the features you want to include in your marketplace application. Whether you are creating a B2B, C2C, or B2C marketplace application, choosing the right features is important. Depending on the type of your marketplace application, integration features and functionalities within your marketplace are the right decision.To give you a basic idea of features that you should include in your marketplace application, here is the list to help you.FeaturesAdminSellers AppBuyers AppAuthenticationManage user authenticationManage seller authenticationManage user authenticationUser ManagementManage user accounts and permissionsManage seller accounts and permissionsManage user profiles and account settingsProduct ListingManage product listingsCreate and manage product listingsBrowse and search for productsOrder ManagementManage orders and paymentsView and manage orders and paymentsPlace and track ordersShippingManage shipping options and tracking informationProvide shipping options and tracking informationView shipping options and tracking informationMessagingCommunicate with users and sellersCommunicate with buyers and adminCommunicate with sellers and adminReviewsMonitor and moderate user reviewsRespond to user reviews and ratingsRead and provide product reviews and ratingsAnalyticsView and analyze user and sales dataView sales and performance metricsView order and shipping details and historySupportProvide customer support and resolve disputesProvide seller support and resolve disputesContact customer support and resolve issuesMarketingManage marketing campaigns and promotionsCreate and manage seller promotions and discountsReceive marketing communications and promotionsNotificationsManage email and push notificationsReceive notifications for orders, sales, and messagesReceive notifications for orders, shipments, and moreThis is the list of basic or must-have features in a marketplace application. When you create your own marketplace application, you need to decide on advanced features for your mobile application.Making your application unique from your competitors helps to gain a competitive advantage. That’s why choosing the advanced features to integrate into your application is a must.As you decide on the features of your marketplace application, the next step is creating the design and user experience of your marketplace mobile application. Check the next step.Design of Your Custom Marketplace ApplicationA mobile app designers team creates the design for your marketplace application. To design your marketplace application, first of all, the wireframe of your marketplace platform is created. Wireframe is a visual representation of your marketplace mobile application that includes the layout and structure of your app’s UI. Creating a wireframe for a mobile application consists of several components, such as images, buttons, menus, input fields, and text.As the wireframe of your marketplace application is created, an interactive prototype of your mobile application is created. Here is an example image of a wireframe of a mobile app.Image Source: DribbleA prototype is a working model of your marketplace application that includes simple functionality and user experience.Creating a prototype of an application helps to test and refine your mobile application’s functionality, user interface, and user experience. This way, it becomes easy to identify potential bugs or issues during marketplace app development. Next, the development of your marketplace application gets started.Development and Testing of Your Custom Marketplace ApplicationDepending on the choice of your mobile app platform either native or cross-platform, the technology stack of your mobile application gets decided.Now, your hire mobile app development team starts coding the features and functionalities of your marketplace application. Mobile app developers build the server-side infrastructure of your mobile application which includes, database and API integration. These APIs are developed to communicate between the front-end and back-end of your mobile application.In addition, the development also includes the steps of setting up user authentication, data storage and retrieval, and payment processing integration. Once the development of your marketplace application gets complete, next the testing is carried out.The QA team prepares a complete strategy to test your own marketplace app. Tasks of the QA team include ensuring your application’s code compliance with the best practices of development, identifying the issues, and testing your mobile marketplace app on different devices.By following testing life, the QA team tests your mobile application from every aspect that includes functionality and performance. All the testing is done with the help of different types of software testing, such as functional, unit, usability, performance, security, compatibility, and user acceptance testing.If bugs are found during the testing of your mobile application, then developers fix the issues accordingly. Once your marketplace platform app is 100% bug-free, then only the QA team sends further to the team for the further deployment process.Launch Your Marketplace Mobile App on the App StoresOnce your marketplace app is ready for release, the app developers team deploy your mobile application on the different app stores according to your requirements. However, to deploy your marketplace app on the app stores, it needs to meet all the app store’s technical requirements and guidelines.Whether you want to deploy your mobile application Apple App Store or Google Play Store, the team of developers deploy your marketplace app accordingly.Generally, the time duration to get your approval on app stores like Apple App Store ranges from 2 – 5 business days and Google Play Store takes up to 7 business days. Certainly, the timeline varies depending on the workload of the app store team.As you are clear with the process of developing a marketplace app for your business, now you might wonder about the cost of mobile application development. Let’s check the next section.How Much Does It Cost to Build a Custom Marketplace App?The average cost to develop a custom marketplace app ranges from $15,000 to $50,000.However, the cost of creating a custom marketplace application depends on several factors, such as the complexity of the app, features and functionalities, the platform you choose, the development team’s location and experience level, and the timeline for development.Let’s learn about the cost of developing a marketplace app based on its complexity.The Complexity of AppExamples of Marketplace AppsCost of Marketplace AppSimpleEtsyPoshmarkLetgo$15,000 – $28,000MediumAirbnbUberFiverr$25,000 – $50,000ComplexityAmazoneBayAliExpressStarts from $50,000As you have learned the cost of marketplace apps, let’s now learn about the timeline for developing a marketplace application.Looking to Know the Exact Cost of Marketplace App Development? Describe your requirements to us mobile app consultants. Our consultants will help you to create a complete roadmap and cost estimation.Schedule Your Free Consultation How Long Does It Take to Develop a Marketplace App?The average timeline to develop a simple marketplace app ranges from 3 – 4 months.Certainly, the timeline to create a marketplace app whether for small or large businesses depends on multiple factors. Those factors are as follows:The complexity of your marketplace applicationThe marketplace app features and functionalities you integrateThe platform you choose to develop your mobile appThe technology stack used for developing marketplace appsThe size of the development team and experienceThe number of change requirements before deploymentThe time requires to test and deploy your marketplace appGet the general timeline of developing a complete marketplace app depending on the different complexity. Check the following table to learn about the timeline.The Complexity of the Marketplace AppTimeline of the Marketplace AppSimple App4 – 6 monthsMedium App6 – 8 monthsComplex App9 – 12 monthsIf you are looking to get an exact timeline to develop your own marketplace app, then get in touch with our experienced mobile app consultant. Our experienced marketplace app developers will validate your application idea and provide your complete roadmap with cost bifurcation.In the next section, learn about the top online marketplaces available in the USA and Canada.5 Top Online Marketplace Mobile Apps in the USA and CanadaIconNameTotal FundingGoogle Play Store RatingsUpWork$168.8 Million 4.0 131K reviewsFiverr$111 Million 4.6 131K reviewsEtsy$97.3 Million 4.9 1.18M reviewsAirbnb$6.4 Billion 4.5 1.41M reviewsTaskRabbit$37.7 Million 3.9 12.1K reviewsIf you still have questions regarding online marketplace apps, check the next section of FAQ.FAQ During Online Marketplace Apps DevelopmentWhat are the benefits of developing a marketplace application?When you develop a marketplace app for your business, you get the following benefits.Increase the revenue of your business with multiple sources of incomeGrow your customer base by exploring the globallyEnhance the efficiency of your business by automating repetitive tasksOffer flexibility to both sellers and buyers within your applicationWhat are the ways to market an online marketplace application?Here are 4 ways to use it to advertise marketplace platforms.Utilize social media marketingStart email marketing campaignPerform app store optimizationStart referral marketingHost events and sponsorshipsWhat are the ways to reduce marketplace app development costs?Generally, here are the ways that you can use to reduce your online marketplace app development costs.Defining the clear scope of an online marketplace appUsing the third-party APIs and servicesChoosing an outsourcing app development companyConsidering building an MVP version of your applicationLet’s Create Your Own Marketplace AppIn this blog, you have learned about the complete process, features, timeline, and cost to create a marketplace app. Whether you have an idea to create a marketplace app for your small, medium-sized, or enterprise business, this process is followed.Do you have an idea to create a unique marketplace app? Are you looking to validate your mobile app idea? Contact us. We are a leading mobile app development company in Canada, having experience in successfully developing 300+ custom software and mobile applications. Let’s connect and talk about your requirements.Subscribe0 Written byRakesh PatelRakesh Patel is the Founder and CEO of Space-O Technologies (Canada). He has 28 years of IT experience in business strategies, operations & information technology. He has expertise in various aspects of business like project planning, sales, and marketing, and has successfully defined flawless business models for the clients. A techie by mind and a writer at heart, he has authored two books – Enterprise Mobility: Strategy & Solutions and A Guide To Open311 ×WAIT!Do you know we offer FREE 30-min consultation?If you have a project in mind, let’s talk.We are here in Canada. If required, we can meet in person. 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