5 steps towards creating your marketplace

In the context of the pandemic, e-commerce has reached a completely new level. The scale of purchases has become incredible and well-known marketplaces have proven themselves well before the rise of the disease.

It is only a matter of time before new marketplaces arise. That is why today we are going to tell you about the 5 stages of creating your trading platform.

Definition of the scope and competitors

In the beginning, at Marketplace Development Services, you need to decide on your field, name, business idea, technologies, and professionals who will be engaged in your custom trading platform development.

Before fully plunging into the process, it is necessary to conduct a thorough analysis, which will consist of identifying the target audience, researching the latest trends in this area, gathering information about your competitors and digital technologies.

Without a business idea, it is difficult to get started and count on success. If you create a marketplace like the existing ones, then there is a great chance that you will quickly go to the bottom among such online trading giants as Amazon, eBay, or AliExpress.

Choosing a narrower field of e-commerce is probably the best place to start. As your loyal customers grow, you will be able to enlarge the range of products, as Jeff Bezos did on Amazon selling books.

Choosing a name and domain

As they say: “As you name the boat, so shall it float”. Your name can stir up the interest of buyers or it can scare them off with its weirdness.

You can rely on unleashing the true potential of your business and letting consumers know what you are working with and what you can offer.

Another option is to create new words to describe your activity. For instance, this is how the names Facebook, Twitter, Spotify were chosen.

Functionality and monetization

For the subsequent work and promotion of your marketplace, you should understand what functionality you will offer, both for buyers and sellers. In this matter, one should not lag behind the concepts of already renowned marketplaces.

Next, you must decide how your site will earn. You can choose the following monetization methods: commission, subscription, product placement fees, tariff plans, or ads.

Attracting sellers

To find sellers, you can use both search engines and see which sellers are already working with other marketplaces.

At the stage of establishing contact with potential sellers, you need to present your new platform and talk about all the benefits and what methods are available to attract customers.

Next, it remains to interest potential customers. You can use both traditional advertising methods and attract customers using social media. Do not forget that promotions and various bonuses will play a great role.

Platform development

There are three classic ways of developing trading platforms: from scratch, using already developed software, and developing based on CMS.

The first option is rather expensive. However, developing from scratch, you become the creator of your project and can make any changes.

Ready-made software is cheaper and faster, but this option does not imply the creation of a unique project, which can alienate potential sellers and customers.

The third option is the golden mean, which will not incur much expense. You will also be able to independently monitor and manage the project.

Conclusion

These 5 steps are the beginning of creating your own marketplace. After the initial stages, you have to carry out many more different tasks in order to declare yourself on the market and provide a unique product.