Talking about online marketplace platforms they are on the rise and they are helping businesses generate revenues at a faster rate. If you are planning to be part of the profitable business journey then you can start giving it a shape with marketplace website development. But, if you are not aware of marketplace development, its costs, and the process of development in 2021, then read on as this blog would guide you on how to build an online marketplace that includes basic and advanced features, the latest technology stack, and development costs. Before you get into the details of these aspects let us understand basic things about online marketplaces

Different Types of Online Marketplaces
If you are thinking about what exactly a marketplace website is then we help you understand this concept. Well, it is an e-commerce platform that is an intermediate between sellers and buyers. It helps shopping online for users who wish to purchase services or products from distinct suppliers. The marketplaces differ based on the business models and participants

Classification of Marketplace by business model
Before you move to the marketplace web app development services process, you need to determine how your platform will work in the future. You can decide that based on the business model you choose and integrate relevant monetization strategies accordingly. Here is the classification based on business models

Vertical marketplace
Horizontal marketplace
Global marketplace
Well, how these marketplaces are different from each other. Let us find out
Vertical Marketplace

Vertical marketplaces are created to concentrate on one specific niche or area. These online marketplaces provide similar goods from multiple vendors. For example Airbnb
Horizontal Marketplace

These marketplaces offer a collection of services and products that belongs to multiple categories. Also, these platforms can be defined as a one-stop-shop destination. For example, Amazon
Global marketplace
These marketplaces serve multiple locations. They offer services and products from different locations and target customers worldwide.

For example, Etsy
Classification of Marketplace by participants
The marketplace websites can also be categorized by the participants engaged. It includes B2B, B2C, & P2P marketplaces. Here, you would be able to determine the marketplace website costs through this type of classification.

1. Business-to-Business(B2B)
Well, B2B means a business-to-business model of online marketplace websites. The marketplace helps sell services and goods and connects several buyers and sellers under one roof. For example, Alibaba

2. Business-to-Customer(B2C)
B2C stands for a business-to-customer online model. It enables selling services/products among customers and businesses directly. For example, Bonanza,

3. Peer-to-Peer (P2P)
It is peer-to-peer (P2P these marketplace websites act as mediators between product owners and those who wish to buy it.

This platform helps users share services and products efficiently. For example, Uber
After knowing about marketplace websites and their types, let us move on to the next part on how to build an online marketplace website.

Now, we have discussed what a marketplace website is and revealed its main types. So let’s turn to the question of how to create an online marketplace platform as it will influence the overall cost of development.
How To Build A Marketplace Website?
To build an online marketplace platform, you can select from 2 different options and they are
Readymade software
Custom software
So, let us learn about each solution to help you choose the appropriate platform.

Ready-made platform
Want to launch your marketplace platform faster? Then you can go with ready-made software as it can be launched faster compared to custom software. Well, it has its set of cons too like
Certain customizations are not possible due to software limitations
A similar template can be used by your competitors
If you wish to build an online marketplace website, try to go with ready open-source software. It will offer you better control over the platform and more scope for customization.

Custom software
If you wish to give a personalized touch to your business idea, then go with custom website design and development services. It will help you focus on the features and functionalities to be integrated into your platform.
The custom solution needs more resources that would increase the costs for creating a marketplace. This option is perfect if you want to include some advanced integrations and features to enhance your website.
Marketplace Website Development – Tech Stack Required
Before you start with online marketplace website design development services make sure you identify the programming tools used to build a platform. It is very important for start-ups. This is because the tech stack used would define the maintainability and performance of the app.

The tech stack also influences the online marketplace website development costs. It is suggested that you select a framework that helps you develop an app faster and launch it faster.

So, let us move on to the primary technologies you need to embed the features for your marketplace platform.
Back-end
Use modern and up-to-date tools for your back-end development. It helps you build a sustainable, maintainable, and effective product.
For Server-side Consider The Following Tech Stacks

Ruby
i18n gem
ElasticSearch
Redis
Ruby on Rails
Sidekiq
MySQL
Front-end
The technologies recommended for front end development are
HTML5

React
CSS3
Vue.js.
JavaScript
Tools & integrations
Tools and Integrations recommended are
AWS S3
GitHub
Slack
GitLab
Digital Ocean
Must-Have Features For Marketplace Website Development

1) Admin Panel
User management solutions
Analytics & Reports
Stock visibility & management
Real-time updates via a single dashboard
Options for charging a commission
Itemizing by Category
Invoicing Solutions
Tax management
Customer management

2) Seller panel
Display of vendor-specific store URLs
Social Connect & Sign-up Login
Stock management
In-app chat system
Transaction management
Order management solutions
Offers, promotions & discounts
Reports and analytics

3) Buyer Panel
Management of personal profile
Registration or Authorization
Shopping cart
Client support for interacting with sellers
Search engine for a seamless search
Listings
Reviews & testimonials
Wishlist
Integrated payment functionality
Customer order tracking
Additional Marketplace Features

These features are added features that can add to the cost of your marketplace development but surely it will help generate revenues as well
Wishlist
Ratings & Reviews
Messaging
Community support
Notifications
Costs To Build A Marketplace App

Well, the marketplace website costs depend on a lot of factors like whether you want to choose readymade software solutions or custom solutions, features integrated into your marketplace (advanced/basic), location of the developers, tech stack used, and a lot of other factors.
So, the price of your project depends on unique requirements for your marketplace site.
Conclusion

We hope the above guide has been helpful to understand the cost to build your marketplace website. Also, you must have got a fair idea of the factors that decide the cost of online marketplace web development.

The best way to build a scalable marketplace website is to hire an expert in this field. If you are searching for a reliable marketplace website development company, Webfox can assist you to get an efficient online marketplace web design and development solution to connect buyers and sellers under one roof.

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