Do you want to start a successful marketplace like eBay, Amazon, or Etsy? Online marketplaces are on the rise now, so it’s a decent idea. According to Statista, eBay has shown Q2 2022 results ahead of expectations with 2.42 bln U.S. dollars of net revenue. However, this statistic is slightly lower than the reported income in the previous quarter.
If you already have an idea to create your unique marketplace, you may want to know: how much does it cost to build a marketplace website in 2023?
We have prepared a thorough guide on important information on marketplace website classification and how they work, how to build an online marketplace, including required features, tech stack, and of course, cost.
Let's start our research!
Types of online marketplaces
In recent years, online marketplaces have had tremendous growth potential. Today there are many different e-commerce websites. Accordingly, the cost of developing your marketplace will directly depend on these and many other classification criteria. So, what are online marketplaces, and how do they differ?
Marketplace website is an e-commerce platform that works as an intermediary between buyers and sellers. It facilitates virtual shopping for consumers who can buy goods or services from different suppliers. Marketplaces can vary depending on the business model, the participants, the management approach, and the niche.
Now we will analyze several of the most popular classifications of marketplaces. Then let's get started!
By business model
Before building an online marketplace, you should define the type of your future platform. It is a business model that will help you implement monetization strategies, features, interfaces, logistics, marketing, etc. They are as follows:
What is the difference between horizontal e-marketplaces and vertical e-marketplaces? Let’s find out by comparing different marketplace types.
How does this work? This type of online website is focused on a specific category of products or services.
You can think of the Airbnb vertical marketplace that specializes in short-term rental options. It operates an online marketplace for short-term homestays and experiences. The company acts as a broker and charges a commission from each booking.
Horizontal marketplaces provide a wide range of products and services from different categories. These e-commerce platforms can be described as a one-stop shop.
A good example of a horizontal marketplace is Amazon, which provides the broadest set of product categories. The company mainly specializes in e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
Also, the company has earned a reputation for well-developed industries thanks to technological innovation and "aggressive" reinvestment of profits in capital expenditures.
Vertical vs horizontal marketplace comparison
|Types of marketplace websites (by business model)|
|Vertical||This type of platform focuses on a particular industry or niche.||StockX, TrueFacet, Chegg, Zillow, Uber|
|Horizontal||This type of platform covers various goods and services with a common unifying characteristic.||Couchsurfing, DogVacay, Poshmark|
Besides, marketplace websites can be classified by the participants involved. They include B2B, B2C, P2P, and C2C business models. This classification is also essential to calculate how much it costs to build a marketplace website.
B2B stands for a business-to-business model of a marketplace platform. Here, the goods and services are sold from one business system to another.
These e-commerce platforms connect multiple sellers with buyers. You can think of Alibaba, one of the world’s top platforms for global wholesale trade.
The advantages of B2B marketplaces are directly related to their implemented functionality. This includes the ability to track the movement of the product and its availability in the warehouse and analytics of the rating of buyers and sellers.
It is also about providing additional news information about changes in the market, which is beneficial to both parties that would include the agreement.
B2B marketplaces provide many vital opportunities for businesses:
- Optimizing the transaction process - saving the time of the seller and the buyer.
- Simplification of communication.
- Increasing the number of customers and sales.
- Analysis of the efficiency of turnover and customer engagement.
- Transparency and reliability from product selection, order payment to product receipt.
- An individual approach to each client.
- Automation of business processes.
B2C refers to the business-to-customer e-commerce model. It implies the process of selling products or services between businesses and customers directly.
In contrast with the previous type, B2C platforms rely more on their brand's emotional response than on the product's value. Bonanza, one of the world’s e-commerce leaders, is an excellent example of such a platform.
Of course, B2C marketplaces have benefits such as:
- No overhead costs in physical stores.
- Selling products or services to customers all over the globe.
- More information about your customers to improve your interaction with them.
- Analytics tools to track the relevance of marketing strategies and conversion.
- A short sales cycle where B2C customers spend less time researching, hesitating, and comparing every product feature.
P2P (peer-to-peer or multi-vendor) marketplace websites are mediators between people who own a product and those who want to purchase it.
The P2P e-commerce website provides users a platform for sharing products and services. You must know Uber, an excellent example of such platforms.
Let's explore the benefits of P2P platforms that you should like:
- P2P marketplaces don't require business owners to invest in buying products or taking care of storage.
- They are among the first ones to adopt big innovations like artificial intelligence or big data.
- The entry barrier to opening a peer-to-peer marketplace is very simplified. These platforms provide a clear outlook on customer activity.
C2C (consumer-to-consumer) marketplaces connect one person who can offer a product or service with another person looking for the same product or service. The difference between the stakeholders that interact with these types of markets is highly variable.
Because key players can switch roles. For example, someone may buy something on an e-marketplace, and the next day they may be offering a product or service for purchase.
eBay, Airbnb, and Etsy are prominent players in the e-commerce marketplace.
Also, there are several primary advantages of C2C marketplace platforms:
- Credibility for the sellers.
- Enhanced the number of visitors and potential customers.
- Less to no marketing and inventory management costs are involved.
- Increased profitability, as no intermediaries are involved.
B2B vs B2C vs P2P vs C2C marketplace comparison
|Types of marketplace websites (by participants)|
|B2B||This type of platform connects multiple sellers with buyers.||Rakuten, Mercateo, Global Sources|
|B2C||This type of platform facilitates selling products between businesses and customers.||eBay, Bonanza, App Store, Google Play|
|P2P||This type of platform acts as a mediator in sharing products and services.||Etsy, Uber, Postmates, Upwork|
|C2C||This type of platform connects people who can offer a product or service with other people looking for the same product or service.||Poshmark, Carsales.com.au|
Finally, you have already analyzed and compared all types of marketplaces by participants. Now let's learn more about our experience in developing marketplaces. At Codica, you can find various examples of marketplaces in our portfolio.
For example, we delivered a custom e-commerce solution. This multi-vendor marketplace platform enables users to do many things using just one platform by switching between its parts if needed.
Our team has verified the marketplace business idea with the help of an MVP platform and improved the custom e-commerce solution based on the collected data.
Also, Codica made the platform attractive and user-friendly to increase user engagement and retention. Moreover, we provided an option for users to find services by choosing a location radius due to the geolocation and map integration.
Below you can watch a video of how this custom marketplace development works.
By management approach
Marketplaces can also be divided into the following categories: open (or unmanaged) and closed (or managed). Let's discuss this classification in more depth.
Open marketplaces unite buyers and sellers. They do not verify the identity of the supplier and the customer. Retailers and brands can sell on these websites in minutes, as the onboarding process is straightforward.
The lowest overhead is one of the main benefits of this solution. For example, eBay fits this description, as do most P2P marketplaces offering products.
Closed marketplaces provide product authentication and identity verification, reducing customer risks. Although these marketplaces usually charge the highest commissions, they prioritize the most reliable suppliers, price standardization, and vetting of supplier qualifications.
Let's take Farfetch as an example. This is an online luxury fashion retail platform that sells products from over 700 boutiques and brands worldwide. The e-commerce company operates local-language websites and mobile apps for international markets.
You can place an order as a guest: all you need is an email address. It is recommended to create a Farfetch account to add items you like to your favorites and track your order status.
If you register before placing an order, you will automatically become a member of Access, Farfetch's loyalty program. Every purchase will bring you closer to new privileges, from early access to sales and priority service to free shipping and a personal stylist.
|Types of marketplace websites (by management approach)|
|Unmanaged||This type of platform accepts virtually all third-party sellers that apply to sell on their online platforms.||Amazon, eBay|
|Managed||This type of platform heavily curates their third-party sellers.||Uber, Splento, Farfetch|
There are also many different types of marketplaces based on a range of thematic models. They are as follows:
- Goods and products;
- Investment and fundraising.
Below you can see the detailed classification along with examples.
Information marketplace allows market participants to present their media assets to external buyers. By buying or selling the products of your intellectual labor, you can provide new sources of income for your business. When you log in to the platform, you set a URL, logo, and homepage banner.
An excellent example of a media marketplace is Twitch, which focuses on video game live streaming. This platform provides communication between the audience and the players. Twitch provides paid subscriptions and messages that have specific highlights in the chat.
The marketplace has also introduced a means to purchase games using streaming links. Moreover, there is a platform that allows streamers to earn commissions from the sales of games they play.
Goods and products marketplace
Goods and products marketplaces are primarily closely related to e-commerce. The main operation mechanism of these platforms can be traced to the charging of commissions from buyers and sellers for placement in listings, access to the site, during payment transactions, and others.
AliExpress is an online retail service especially popular with goods and products marketplaces worldwide.
Services marketplaces are generally the most common among B2C and C2C platforms. What is the nature of these marketplaces?
Businesses or customers provide services to their customers. These service marketplaces provide various market monetization strategies, especially advertising, commission, and subscription models.
You can think of the Upwork services marketplace providing clients with potential employment as a freelancer or with freelance agencies through the company's platform. With Upwork, you can browse millions of jobs and find the ones that are perfect for you.
Investment and fundraising marketplace
Investment and fundraising marketplaces are considered a bridge of communication between businesses. For example, these online platforms facilitate the search for new investors and help conclude deals for large amounts.
Kickstarter is an excellent example of an investment and crowdfunding marketplace. It offers substantial rewards or experiences for its clients in exchange for their commitments.
Founders of innovative companies and individual developers collect funds on the platform to obtain financing for their creative ideas.
The purpose of the collection can be as diverse as possible: the release of gadgets, the publication of books and comics, the shooting of independent films, and many other projects in the most varied categories (arts, design, food, movie, music, and others).
For a small organization or an individual startup, Kickstarter can be an excellent marketing tool to attract investment to your product and expand the audience of users.
It is also worth mentioning the NFT (Non-Fungible Token) marketplace. In fact, it is a finished product that has value in the digital space.
For creative people, the NFT marketplace is also a way to earn cryptocurrency by building their collections. What makes NFTs unique is that they are a reliable means of providing and storing a tangible value to non-tangible things.
For example, OpenSea is the most popular and widely used NFT marketplace.
Also, Yawww is a community-owned NFT marketplace and a peer-to-peer NFT lending platform. There are many other examples of NFT marketplaces like NiftyGateway, X2Y2, Tensor, and others.
Information vs goods and products vs services vs investment and fundraising marketplace comparison
|Types of marketplace websites (by thematic)|
|Information||This type of platform allows participants to buy and sell their intellectual work products.||Twitch, Spotify, MediaMath, YouTube, SoundCloud|
|Goods and products||This type of platform allows vendors to sell their products or goods to a curated customer base.||Amazon, eBay, Etsy, OLX, AliExpress|
|Services||This type of platform allows businesses or customers to present their services to their customers.||Uber, Airbnb, Upwork, Booking.com, Couchsurfing|
|Investment and fundraising||This type of platform helps to find investors, suppliers, or deals.||Kickstarter, Indiegogo, CircleUp|
By communication means
Customers can obtain online and offline services. So, below are two types of marketplaces according to the way of interactions.
This approach lets customers interact with the online store and only receive products offline. For example, it is possible to buy tickets online and receive them by email. Also, customers can purchase apps from Google Play or AppStore and use them online.
Flipkart is a leading goal for online shopping, offering some of the best prices and a hassle-free experience.
This marketplace combines online marketing techniques with offline marketing approaches. Customers can choose the necessary goods remotely and receive them directly in stores. Also, this type of interaction allows you to carry out, for example, self-pickup or return of goods purchased online in a regular store.
In this case, an excellent example of O2O is Walmart, the world's largest company by revenue, which operates a chain of supercenters and discount department stores.
Finally, this marketplace attracts users online, but the clients get a service offline. For example, one chose a product on the Internet but received it at the shop. Another found someone online, who was willing to walk their dog, and the person in question came to their house.
Online commerce vs online-to-offline marketplace comparison
|Types of marketplace websites (by communication means)|
|Online commerce||This type of platform provides online services.||Amazon, Flipkart, Shopify, Myntra, eBay, Quikr, OLX|
|Online-to-offline||This type of platform attracts users online, but the clients get a service offline.||Target, Walmart, Kroger, Nordstrom|
What are the benefits of marketplace development for an entrepreneur?
Marketplace owners can obtain various benefits from creating marketplace websites. For example, your marketplace app can attract customers due to high-quality products. Therefore, you should expect a gradual increase in potential buyers, profit growth and network expansion.
With marketplace development, your business will be more efficient since you will provide flexibility of choice for your customers. According to Statista, almost half of the respondents selected the marketplaces because of their flexibility.
Many companies mainly plan to create their marketplaces for the following reasons:
- Marketplaces make it possible to raise brand awareness in the network.
- Moreover, marketplaces provide competitive benefits in their niche.
- They increase the product range.
- They also save money on keeping goods in the warehouse.
- Marketplaces expand the scale of operations and revenues.
As a marketplace owner, you bridge the gap between many goods and services suppliers. Your marketplace app can offer customers many customizable alternatives to buy what they want without being limited to one supplier.
Also, you can allow users of your marketplace to rate purchased products. Thus, customer feedback (text, photo/video) will be another benefit for your marketplace.
What factors influence marketplace development cost?
Depending on the tasks a marketplace solves, you need to invest a certain amount of money.
Many aspects influence the costs to be contributed to its development. So let's break down the factors affecting the cost of building a marketplace website.
Ready-made vs. custom development
It appears at first glance that once you buy pre-built software, there won't be any fine-tuning of your website, and you won't spend more money.
In practice, an installation of this software requires extra hiring. Plus, there's a risk of cost climbing due to upgrades. Not to mention buying relevant hardware needed for stable performance. Besides, it is hard to tailor a standard template to personalized business logic.
Thus, making your fully customizable online marketplace website requires far more time and effort. So, the timeframe and development cost may expand significantly.
Platform complexity dramatically impacts the cost of building a marketplace website. When you bring your ideas to the table, a software agency reveals the pricing feature-by-feature.
If you build your marketplace app as a minimum viable product first, it only needs the core functionality. But include all the "extras", as they define your estimated running costs when adding features to the website. Make sure that you consider all ins and outs that demand more expense in the future.
Finally, check that you and your users benefit from each function you want to add to your marketplace app.
Developers’ hourly rate
A specialist’s hourly salary significantly defines the development cost of the marketplace from scratch.
Whereas the price tag in the US is around $81-132, elsewhere, say in Ukraine, developers charge roughly $45-50 for the same amount of work.
At the same time, we would recommend hiring an agency or freelancer specializing in marketplace development. In such a way, you can be sure that your developers know the process of building a marketplace inside out.
Speaking of pricing models, down below, you can examine an approach to hiring Ukrainian developers.
Below we present you each of the factors in more detail. Let’s check them!
How to create a marketplace website?
So, we have cleared what a marketplace website is and revealed its main types. Now, let’s research how much it costs to build an online marketplace that dramatically impacts the total development cost.
Ready-made solution vs custom marketplace development
When it comes to building an online store, you have to decide on a pricing policy. So, you can choose from two possible options:
- Off-the-shelf solution;
- Custom software.
Let’s discuss how to create an online marketplace using each solution and what is the right one for you.
If you want to build a marketplace platform easily and quickly, you can choose an off-the-shelf solution.
Most entrepreneurs opt for ready software as it takes less time to launch compared to a custom software development solution. Mostly, it happens due to the fact that you have an opportunity to avoid wireframing, development, and testing.
On the flip side, an off-the-shelf solution has cons, for instance:
- You may not be able to make some customizations due to the software specificity;
- Competitors might use the same template.
To develop a marketplace platform fast, consider also turning to a ready open-source option. It provides you with more control over your platform and more room for customization. Magento is one of the most popular open-source e-commerce platforms.
So, how much does it cost to build an online marketplace when you opt for ready-made solutions? Here is an example of Sharetribe pricing, one of the leaders in marketplace software providers.
Building a marketplace from scratch
Do you need to start an online marketplace from scratch with personalized business logic? Then you should choose a marketplace development service. This way, it is only up to you to decide on the platform's functionality.
The tailored solution frequently requires more resources, and it, of course, means a higher total cost to develop a marketplace website. However, it is a perfect option if you need to add some advanced features and integrations to improve your marketplace platform.
Different ways of starting the development process affect marketplace website development cost. The main options are as follows:
- In-house development team;
- Freelance services;
- Software development agency.
The core benefit of the last option is that such companies have solid experience in online marketplace development. This way, you can be sure to get the solution that you need.
How much does it cost to develop a marketplace website with a custom software approach? It entirely depends on many factors, including the location of your development team and their hourly rates. For example, according to Arc, the average hourly rate of a web developer in the USA can be around $81-100 per hour.
In Eastern European countries, the rates are lower. For example, if you decide to turn to Ukrainian software development companies, they will charge you around $35-80 per hour.
See how much does it cost to build an online marketplace considering average web developer hourly rates. We made a salary comparison between the US, Western, and Eastern Europe regions, using the data by Arc.
You may also like: How to Build a Rental Marketplace: Ultimate Guide
Technology stack for marketplace development
Before building a marketplace, consider the programming tools you will use to create a platform. Why is it important for entrepreneurs? The tech stack you implement will influence the application’s performance and maintainability. Moreover, the tech stack affects the price of the specialists you will hire to bring your business idea into reality.
Shortly, if chosen the wrong tools, you may get low page loading speed, face scalability, and update problems. So we suggest choosing a framework that will allow you to build your app quickly and launch it as soon as possible.
Let’s take a look at the leading technologies you will need to implement the marketplace platform features.
We recommend using the most up-to-date and modern tools. They allow making your product scalable, maintainable, and sustainable.
At Codica, we use the following tech stack to develop the server-side part: Node.js, NestJS, Serverless, Ruby, Ruby on Rails, PostgreSQL, Elasticsearch, Redis, and AWS.
Our experience shows that the above tech stack has proved very effective for delivering various platforms. For example, for one of our clients, we quickly delivered an online booking platform where parents can plan kids’ activities without any legwork.
We implement the technologies that enable us to offer customers brilliant UI solutions. They have both high performance and stability.
Tools and integrations
Integrations and tools simplify development, communication, DevOps, and other processes. At Codica, we use the following instruments: AWS services, GitLab CI/CD, Docker, and Terraform.
Full tech stack for marketplace development
Codica’s experts always choose the most suitable technology stack for each project. Below you can find important technical solutions we use for marketplace website development.
Core features for an online marketplace
To know how much it costs to build an online marketplace, you need to outline what functionality you want to include in your solution.
We always recommend our clients start with a marketplace MVP or minimum viable product. In such a way, you can test your idea with a minimum budget spent. Further on, as your e-commerce business grows, you can add more functionality.
Main marketplace MVP features
How to develop a marketplace website that is filled with features to benefit from initially? Based on our vast experience, we suggest including the following functionality in a marketplace MVP.
By creating a minimum viable product with this functionality, you can reduce the total cost of building a marketplace website.
Registration/authorization are essential features that allow newcomers to use your platform. Registered users can sign in to their accounts and list products or search for goods.
Here is an example of the authorization window we implemented into an activity booking marketplace.
Profiles contain all the necessary information about both suppliers and buyers.
The vendor panel includes specific data, such as shipping and payment methods used by a seller, their product listings, etc.
Buyers’ accounts are primarily about personal information, the ability to view previous orders, and a wishlist.
Item listing allows sellers to offer their goods or services and make them visible to potential customers.
Let’s check how this listing is presented in Codica’s custom e-commerce solution.
Advanced search is a vital feature for any online store as it makes navigation easier and less time-consuming. This way, buyers can search for services or goods listed by suppliers.
Below you can see an example of the advanced research the Codica team implemented into an online marketplace for campers in Australia.
The product page should provide customers with comprehensive information about each item sold. High-quality photos, videos, and detailed descriptions make your online store look reliable.
The shopping cart contains the products chosen. In this shopping cart, a buyer can change the number of goods they want to buy, delete them, view payment methods, shipping prices, etc.
Payment methods allow buyers to purchase via different types of cards and multiple gateways. With a wide array of marketplace payment options, you will give your customers the possibility to choose the one that suits them best.
When choosing a payment system for the multi-vendor e-commerce marketplace platform, Codica selected Stripe. Besides, it is also the choice of Amazon, Shopify, Zoom, and many successful web solutions.
The administrator panel is essential to the business holder. Make the marketplace website's settings customizable for various groups of suppliers. These settings include shipping and payment methods, and fees. The administrator can also manage sellers’ listings, filters, and categories.
Below, you can see the admin panel we built for the Digital Village project, which is an online collaboration marketplace.
Shipping is a must-have function that helps consumers choose the most convenient delivery option. For example, Etsy Shipping Labels let you ship orders with USPS, FedEx, or Canada Post right from your Etsy shop.
Once you purchase a label for an order, Etsy specialists will automatically mark it as shipped. Then print the label out, and your item is ready for delivery.
Additional marketplace functionality
Additional features increase the total cost of building an online marketplace, and we suggest adding them as your marketplace scales. You can start with the following:
Ratings and reviews help buyers come to well-thought purchasing decisions. It makes your website more trustworthy because you provide users with both products’ and vendors’ ratings.
A wishlist is a strong marketing trick as this feature allows customers to save products they are likely to buy. That's also a way how to create a marketplace website that drives extra engagement. When buyers share their wishlists with their friends or family, it sends free traffic to your online store.
Notifications straightaway lead to specific pages within your marketplace website. It works pretty simply: you get a notification, click on it, and immediately shift to a certain page. This way, it greatly boosts user experience and accelerates many processes.
Messaging enables sellers and buyers to discuss the details of products, pricing, shipping, etc.
Community support is a valuable service that processes users’ problems and helps to solve them.
Of course, this is not the full list of all the possible functionality you can include in your marketplace app. We have listed examples of the most common features that users love, but they are optional in the MVP stage.
How much does it cost to build a marketplace app?
If you are looking for specific numbers, below is the detailed table. It shows the approximate costs of building must-have features for a basic online marketplace platform.
|How much does it cost to build a marketplace website?|
|Features||Time, hours||Cost, $50/hour|
|UX Development||42 hours||$2,100|
|UI Development||56 hours||$2,800|
|Project setup||16 hours||$800|
|DB structure||32 hours||$1,600|
|Payment (Stripe or PayPal)||32 hours||$1,600|
|Shipment (Shippo)||32 hours||$1,600|
|Authorization and Security||72 hours||$3,600|
|User Profiles||42 hours||$2,100|
|Home page||84 hours||$4,200|
|Search and filters||96 hours||$4,800|
|Product page||42 hours||$2,100|
|Reviews ratings||48 hours||$2,400|
|Shopping cart||64 hours||$3,200|
|Buyer panel||120 hours||$6,000|
|Vendor panel||164 hours||$8,200|
|Admin panel||192 hours||$9,600|
|Non development activity|
|Project management||48 hours||$2,400|
|Quality assurance||64 hours||$3,200|
|Code review||48 hours||$2,400|
Thus, you can see that it will take approximately 1368 hours to build an online marketplace. If we take the average rate of $50, the cost of building a marketplace website will start from $68,400.
In fact, the amount of development hours depends on the unique requirements of each project intended to build a marketplace site. Also, the final marketplace website development cost depends on the hourly rates of the software company you choose.
You may also like: 10 Best Marketplace Monetization Strategies to Succeed
How to choose a marketplace development agency?
Only professionals can drive end-users' loyalty, introducing them to more eligible ways of trading online. So how to find the best-fit software company?
Here are some factors to consider when looking for a development team.
The "know-it-all" approach doesn't work if your goal is to build a marketplace website. Since no one is an expert on everything, look for an agency specializing in your case.
Obtaining experience in building an online marketplace provides insight-driven solutions. Also, based on previous cases, the developers think of hidden pitfalls beforehand. They know exactly how much it costs to build a marketplace website. Such experts can advise on the primary functionality to include if you want to start with a low-cost MVP.
You can find helpful evidence of the companies' proficiency in their portfolio with completed projects. At Codica, our portfolio allows us to visualize our online marketplace development expertise. Also, you are welcome to see our designs for projects on Behance.
Check the market insights from independent research firms. Having a partnership with a reputable team means that skilled professionals are working on your project.
Related reading: Codica Named a Top Software Development Company by GoodFirms
Since developers' methods differ, clarify beforehand what methodology a company uses.
Today, the approach that proves its efficiency is the agile methodology. It enables software agencies to solve challenges that pop up along the way in no time. So, this technique makes marketplace website development seamless and efficient.
Let's briefly discuss the pros of having partnered with an agile company:
Flexibility. Being able to respond swiftly to changing demands and benefit instantly from newfound ways of running a business.
Time-saving. Going agile empowers you with multiple feedback loops. It helps keep the project from disrupting and turning new findings into customer-driven features.
Cost-efficiency. Staying "always-on" allows you to see every single change throughout work progress. Iterating step-by-step, you estimate the importance of each feature to be implemented. Thus, you save money, testing and removing unnecessary components from the scope.
Better control. Daily reports, which are part of the agile methodology, allow tracking the progress of tasks. Managers can plan and correct the development progress as soon as possible.
Reduced risks. Moving into small sprints, the agile team discovers and removes issues at the earliest stages of development.
The right technology stack
Another vital aspect of marketplace development implies that you use relevant technology.
As a result, our clients get rich-featured websites without sacrificing speed performance.
For example, we widely use Ruby on Rails for building marketplaces. It is helpful thanks to the following advantages:
Reliable. With Ruby on Rails, it becomes easy to implement complex business logic. You should only add some front-end framework. Luckily, there are several tools like React, Vue, and Angular.
Scalable. This aspect is vital for startups and businesses that aim to expand in the future. RoR proved its scalability when you need to deploy the server-side code. So, an online marketplace that uses Ruby on Rails can increase the flow and functionality of the operations.
Cost- and time-saving. Ruby on Rails’ syntax is intuitive and readable. Plus, the framework offers a large number of open-source packages called gems. This framework also allows developers to perform better and deliver a solution in less time, thus, saving costs.
Secure. Increased resistance to vulnerabilities thanks to the built-in RoR mechanisms. They help you avoid threats such as cross-site scripting and request forgery, session hijacking, IDOR attack, and more.
Quality assurance and post-deployment support
Make sure the selected team provides quality assurance throughout the entire development cycle. It is a great way to avoid risks, decrease bugs, and save marketplace website development costs.
Note that in companies like Codica, software services continue beyond your product's launch. Our team of experts will ensure your platform runs perfectly after the release.
Creating a platform from scratch, you need to entrust the development to a full-cycle software development team. So, what team will bring your SaaS application to reality? It is about Project manager, UX/UI designers, back-end and front-end developers, DevOps, and QA engineers.
Customers’ feedback is an essential tool for making sure that a development firm is credible, as reviews come from people’s experiences.
Here is a testimonial from David Watkins, who needed a solution to plan children’s leisure. David describes what challenges he faced as a parent and how Codica helped him solve them with a custom-built online marketplace.
Codica expertise in marketplace website development
At Codica, we have been delivering complex custom marketplace platforms since 2015. Our priority is to build marketplace websites that are fast-loading and engaging. This approach helps our clients generate traffic, boost conversion rates, and increase sales.
For the past seven years, we have built successful solutions for tour and travel software, automotive marketplace, activity booking marketplace, and other domains. We are proud of our efficient development process and deep expertise in building online marketplaces.
For example, our Codica team built a recreational vehicles marketplace platform, TradeRVs. This marketplace for caravans is a leading platform in Australia. With TradeRVs, campers can sell or buy new or used caravans, motorhomes, camper trailers, parts and accessories, and other recreational vehicles.
We redesigned the existing solution and created a new platform to help our client further develop their online caravan store. Also, our experts provided third-party integrations with service content providers and dealer management systems to increase user engagement.
Finally, Codica specialists customized the function of choosing different advertising packages to help private sellers and dealers increase sales by promoting their listings.
How does it work? The video below explains how the caravan selling website functions.
A marketplace is a great way to start trading from scratch or test new markets without spending much money. This is an especially interesting model for small companies with modest marketing budgets who can only spend a little money to launch a new line of business.
The marketplace format gives everyone access to an audience, a convenient interface, and reliable payment tools. We hope our detailed guide helped you understand how much it costs to build a marketplace website and get benefits from it.
If you are looking for a reliable online marketplace development company, our expert team will gladly help to make a marketplace website for you. Do not hesitate to contact us to discuss your project!