The burst of advancements in the way we live due to the advent of the internet has not left any sector behind. The online space has provided a viable and expanse ground for commercial activities to be carried out. It now takes just a few clicks on your mobile phone to place an order and get it delivered to you within minutes. The world has become one interconnected commercial hub, thanks to the internet.
These online places where we go shop for things are called Online Marketplace. Many people are increasingly seeking marketplace development services. This is because these online commerce places not only bring convenience to the buyer, it is the best place for sellers to find willing buyers. This has made thriving online marketplace apps enviable. Do you seek to know how to build a marketplace app? Here is the perfect guide you need. Keep reading to find all the answers that you seek.
What is the marketplace app?
A marketplace app is a platform that offers independent sellers a virtual online space to display their goods and services for sale. Online Marketplace apps act as a bridge between the buyers and sellers. This is different from online stores that are specific to a particular seller.
Online marketplace platforms like a conventional market bring different sellers together under a digital umbrella. There is a wide array of things that are being sold on the online market places including digital products like the NFT marketplace. Popular examples of marketplace app include Amazon, Airbnb, OLX, Oodle, eBay, Fiver, Upwork, and Uber.
Types of marketplace app
There are several types of marketplace app and you need to know about them before proceeding to build one. 4 criteria can be used to categorize marketplace apps. These four criteria are as follows:
1) Target Audience
Under the target audience, we can have three types of online marketplace platforms: Business-to-Business, Business-to-Customer, and Peer-to-Peer platforms.
Based on the type of product, online marketplace apps can be hybrid, product, services, and project marketplaces.
There are two marketplace types under this, the Vertical and Horizontal marketplace.
Based on interaction, there can be online commerce and online-to-offline commerce. The former involves bringing online customers to a physical site for business transactions to be finalized.
How to build a marketplace app
Marketplace app development is a rewarding project once all the necessary things are put in place. There are 7 simple steps to answer the question of how to build a marketplace app. Each of these steps is important to the success of marketplace app development. If you desire to build one of the best marketplace apps like Amazon, then you must get each of these steps right.
Step 1. Choose type marketplace & Monetization
The first step is to decide on what type of marketplace you want to build. This information will be the pivot on which many other steps will rely. You must conclude what type of activities will be carried out on this app. This will help you define with detail your target. It is projected that the e-commerce market revenue in the United States will reach US$875,196 million in 2022 and the number of users is expected to reach 273.7 million by 2025. (Statista).
You need to choose a monetization model for your marketplace app. There are five models for monetization you can pick from. It can be by commission, subscription fee, listing fee, featured listing, or advertising.
Step 2. Make research and structure
The next step on how to build an app marketplace is to do feasibility studies and research. Get to analyze and understand how the eCommerce online marketplace space has been fairing. You need to get well informed about the business of the marketplace. You need to find answers to questions like:
- What is the current market size?
- What niche is dominating the game?
- What is the best revenue model?
- What is the major interest of people using online marketplace apps?
These questions and many more will help you design a structure that will be pivotal to the next step.
Step 3. Plan
The third step is to draw a plan based on the answers to the research questions you formed earlier. This is the stage of the marketplace app development where you have a hypothetical design of the app. You should plan each feature you will love to have on the app and how it will get to the end-users. This step also includes timelines for each of the steps, and how much is to be committed to it. Planning is a very important step as it
Step 4. Choose a team that build a marketplace app for you
After you have decided on important features and functionalities. It is time to get a team together to turn your plan into reality. You need a capable team that can bring out the best of what is in your head into an app. A marketplace development services provider with pedigree and quality output is important here.
Step 5. Process development
Aside from getting a capable team to build the marketplace app, you must pay attention to processes. Beyond the app, there is a need for necessary management plans that will ensure the continuous running of the platform.
Step 6. Testing & QA
This is the stage after the app has been created to ensure that all functionalities and processes are working well. The quality of the app is analyzed with different tests and surveys before proceeding to the release stage.
Step 7. Release and Promotion
The final step is to release the marketplace app to the public and this is backed by a well-planned promotion. This will ensure that the targeted audience is reached.
Creating a marketplace app is an elaborate process that requires research and proper planning. To get the best out of the planning and research a trusted marketplace development services must be contracted for the app-building. Then the whole process will produce one of the best online marketplace apps.