Create an online marketplace
If you’re thinking about launching your own marketplace, you’re in the right place. Whether you’re planning to create a generalist platform or focus on a specific niche — by sector, audience, or product type — this guide will walk you through how to bring your idea to life.
Here are the 7 key steps to building a successful marketplace:
Understand your target audience: identify their needs, habits, and pain points
Analyze the market: map out competitors and spot differentiation opportunities
Set a realistic budget: covering development, marketing, and operations
Clarify your value proposition: what makes your marketplace unique?
Choose the right business model: commission-based, subscription, freemium, etc.
Build a Minimum Viable Product (MVP): test early before scaling
Balance supply and demand: with a phased, strategic acquisition approach
FAQ
What is a marketplace?
What are the types of marketplaces (by offer and type of exchange)?
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Sale of physical products: new or second-hand items (e.g., Amazon, Vinted).
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Sale of digital products: software, courses, photos, downloadable files… (e.g., Udemy, Envato Market).
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Sale of services: services purchased directly on the platform or after being connected with the provider (e.g., Fiverr, Doctolib).
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Rental / booking of products or services: physical goods or services rented for a set period, with an online booking system (e.g., Airbnb).
A marketplace can combine several approaches:
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Transaction mode: direct sale or rental/booking.
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Nature of the offering: physical products, digital products, or services.
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Presentation format: provider profile/listing or product/service page.
What are the marketplace models (depending on who sells to whom)?
Marketplace models differ according to the nature of the relationships between sellers and buyers:
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B2C (Business-to-Consumer): professional sellers → consumers (e.g., Amazon, Cdiscount).
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C2C (Consumer-to-Consumer): individuals → individuals (e.g., Leboncoin, Vinted).
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B2B (Business-to-Business): exchanges between businesses (e.g., Ankorstore).
These models can be combined with different types of marketplaces, transaction modes, and presentation formats.
What is the difference between a marketplace and an e-commerce site?
The distinction is simple: an e-commerce site sells its own products or services, while a marketplace allows multiple third-party sellers to offer their products on the same platform.
Both models enable online purchasing, but their operation differs. E-commerce relies on a direct relationship between a single seller and the buyer. In contrast, a marketplace works like a digital market, bringing together many sellers within the same sales space.
Why create a marketplace in 2025?
What are the possible business models for a marketplace?
A marketplace can adopt different business models depending on its sector and strategy.
The most common is the commission on transactions, where the platform takes a percentage or a fixed amount from each sale.
There is also the subscription model, where sellers pay to access certain features or simply to be present on the platform.
Other approaches exist: registration fees, freemium services (free access with paid options), advertising, or even selling leads.
In many cases, several models are combined to maximize profitability.
What payment methods are supported on a marketplace?
On a marketplace, several payment methods can be offered to facilitate and secure transactions between buyers and sellers:
- Bank cards (Visa, Mastercard, etc.)
- Digital wallets: PayPal, Apple Pay, Google Pay…
- Bank transfers (less common, often for larger amounts)
- Installment payments via specialized providers
- Cryptocurrencies in specific cases
- Platform-integrated wallets allowing users to store an online balance
- Points systems or internal currencies usable to pay for purchases on the platform
To manage these payments securely and in compliance with regulations (KYC, anti-money laundering), especially in the case of funds collection on behalf of third parties with a commission-based business model, marketplaces usually rely on licensed providers such as Stripe Connect or Mangopay.
Study your target audience: how to proceed?
The study of your target must be continuous, both before and after the launch of your marketplace. Understanding the expectations of buyers and sellers is essential to adjusting your offer and ensuring the adoption of your platform.
Study current behaviors
Offerers: where and how do they currently offer their services or products? What channels do they use (competing marketplaces, social networks, specialized sites, forums, etc.)?
On the demand side: how do they search for these offers? What keywords do they type into search engines? Do they use competing marketplaces or other solutions?
Depending on the type of marketplace, some users may be both sellers and buyers. For example, on a private rental platform, a user may be both an owner renting out his home and a traveler renting out a home.
Build personas for better targeting
Create typical user profiles (“personas”) representing your ideal buyers and sellers. For each persona :
- Gender, age, location.
- Interests and purchasing behavior.
- Motivations and obstacles to the potential use of the marketplace you’re considering, and frustrations with existing solutions (lack of flexibility, fees too high, complexity of use, absence of certain functionalities, difficulty in finding an offer corresponding to their needs…).
Dialogue with your target audience to better engage them
- Before the launch: conduct qualitative interviews to refine your offer.
- Post-launch: gather ongoing feedback on what already exists, and suggestions on their expectations, so you can fine-tune your functionalities.
Build a lasting relationship with your community
Use analytics tools (Google Analytics, Hotjar, surveys, conversion tracking…) to measure engagement and observe buying behavior on your platform. By staying close to your audience, you’ll be able to adapt your marketplace and federate a real community, beneficial for loyalty and growth.
Analyze Your Market and Competition to Successfully Create a Marketplace
Validate Your Marketplace Idea Before You Launch
Before jumping into development, take a step back to assess whether your marketplace idea solves a real problem. Then, study how current players operate and identify what you could improve or do differently.
Analyze the Competition
Study your competitors to understand what drives their success — and where they fall short. Look at their business models, target audiences, and growth strategies to identify what works and what could be optimized.
Test their product or service yourself to experience the user journey firsthand and spot pain points. The goal is to uncover untapped opportunities and define how you can differentiate your platform.
Ask yourself:
- What will you offer that’s better or different
- Why would users choose your marketplace over existing options?
Evaluate the Market Size
Ensure that the potential revenue is sufficient to make your marketplace viable. If the market is small and the competition is already strong, even with optimistic projections, how much can you realistically expect to generate?
Project your revenue based on your business model (e.g., subscription or commission-based):
- If you’re using a subscription model, estimate whether the number of potential paying users can generate enough recurring income.
- If you go with a commission model, calculate whether the projected transaction volume and commission rate will cover your costs and make the business profitable.
Also consider complementary or alternative revenue streams, such as featured listings, advertising, or paid premium features, to diversify your income.
Identify Opportunities and Threats
Spot opportunities your marketplace could capitalize on:
- Lack of centralized platforms in your niche
- Frustration with current solutions
- A market still in the process of digitizing
- Growing demand for resale, refurbished, or circular economy models
Also anticipate potential risks and threats:
- New regulations
- Emerging competitors
- Disruptive technologies
Stay informed on market trends and innovations to keep your strategy aligned with what’s coming.
Gather Actionable Market Intelligence
Collect concrete data to support and validate your project:
- Revenue figures (via Crunchbase, PitchBook, or public company filings)
- Team size and roles (through LinkedIn company profiles or hiring pages)
- Website performance: traffic and search rankings (with SimilarWeb, Ahrefs, SEMrush, etc.)
Gather user reviews and feedback on your competitors’ platforms from:
- Forums like Reddit or Quora
- Review platforms like Trustpilot, G2, or Google Reviews
- Social media discussions
User frustrations are often great opportunities for you to stand out.
For example: if Etsy sellers complain about high fees, a new marketplace could attract them with a more favorable commission structure.
Complete your research with industry reports (Statista, IBISWorld, eMarketer) or by connecting with market professionals at industry events, trade shows, or webinars.
Make sure your idea has real potential before launching — and keep monitoring your market so you can adapt your strategy as conditions evolve.
Define your value proposition
Your value proposition is what makes your marketplace unique and sets it apart from the competition. It must clearly answer the question: Why would a user choose your platform over another?
How do you define your value proposition?
- Identify your target market’s needs: what problems do your future users face, and how can your marketplace address them in a unique and innovative way?
- Identify what really sets you apart: what are the weak points of existing solutions, and how can you propose a more innovative, more efficient or better adapted approach to your target market?
- Formulate a clear and powerful promise: a concise sentence that directly expresses your added value. For example: “The first marketplace that connects local artisans with urban consumers in search of authenticity.” or “The first platform that facilitates long-term rental with secure payments and simplified contract management.”
- Test and validate your proposition: before adopting it definitively, confront it with your target audience to check that it really speaks to them and corresponds to their real needs.
- Integrate this value proposition into all your communications: website, advertisements, emails… it must be visible and consistent at every point of contact with your users.
Your value proposition isn’t set in stone, it can evolve over time in line with user feedback and strategic adjustments. Remember to evaluate it regularly to stay relevant and competitive.
Set a budget: How much does it cost to create a marketplace?
What Budget Should You Plan for Your Marketplace Project?
The budget will depend on the specific needs of your project, but here are key elements to consider when estimating your startup costs in the U.S. market:
What Are the Main Costs of a Marketplace?
Web Platform Development
- SaaS Solutions: Expect to pay between $1,500 and $6,000 per year for a user-friendly SaaS platform with solid value (e.g., Sharetribe, Arcadier, Near Me).
- Custom Development: For a fully custom-built marketplace, development costs can easily range from $80,000 to $150,000 or more, depending on complexity and features.
Customizing a SaaS platform: Budget between $2,000 and $12,000 for specific integrations, custom features, or branding.
Design (Branding & UI/UX)
Creating a strong visual identity and user experience is essential. A custom design could cost anywhere from $2,500 to $12,000, depending on the depth of work.
Maintenance & Support
- For SaaS platforms, maintenance, hosting, and updates are usually included in the subscription fee.
- For custom-built platforms, you’ll need a dedicated developer or agency for ongoing support, which could range from $500 to $2,000/month.
Team & Staffing
Depending on your availability and budget, you can start solo, hire interns, or bring on full-time sales or operations staff.
- Hiring a freelance sales rep or contractor might cost $20–$40/hour, while full-time employees can range from $50,000 to $90,000/year depending on experience.
- Effective sales and networking (cold outreach, LinkedIn, trade shows) are key to gaining traction.
Transaction Fees
Not an upfront investment, but crucial in your business model. Depending on your payment processor (e.g., Stripe, PayPal, Square), plan for 2.5% to 3.5% per transaction on average.
Other Tools & Services
- Tools for CRM, analytics, marketing automation, etc. (like HubSpot, Segment, Mailchimp) may cost between $50 to $300/month, depending on your stack.
- Also consider: domain registration, cloud services (e.g., AWS, Google Cloud), or project management tools (e.g., Notion, Trello, ClickUp).
Marketing Budget: Don’t Skip It
Marketing is crucial—without it, your marketplace won’t be seen. Plan to dedicate 30% to 50% of your overall budget to customer acquisition. Here’s a breakdown of common marketing costs in the U.S.:
SEO (Search Engine Optimization): Between $300 and $1,200/month. This includes on-page SEO, technical improvements, content creation, and backlink outreach.
Paid Ads (Google, Facebook, LinkedIn Ads, etc.): Budget $600 to $2,500/month or more, depending on your goals and competition.
Email Marketing:
Tools like Mailchimp or ConvertKit: $15 to $75/month
Campaign creation (copywriting & visuals): $200 to $1,200/month
Influencers & Partnerships: Highly variable. Expect $300 to $5,000+ depending on the influencer’s audience and engagement.
Don’t forget content creation costs—this includes video production, blog writing, visuals, infographics, and newsletters. Whether done in-house or outsourced, this can significantly impact your visibility.
Important Tip
Test different marketing channels and track performance carefully. Start small, analyze ROI, and scale what works. A lean strategy with good execution can outperform a large but unfocused budget.
Estimated Global Budget to Launch in the U.S.
If you’re unsure where to start, we recommend planning a minimum of $20,000 to $40,000/year for a solid launch. It’s possible to start with less, but it will be slower and riskier.
Execution is everything—smart marketing and a clear go-to-market strategy can make all the difference, even with a tighter budget.
Choose the right business model
Your marketplace’s business model determines how you will generate revenue and ensure its viability. You need to define a model that’s adapted to your audience and your market.
How Does a Marketplace Make Money?
| Business Model | Description | Advantages | Drawbacks |
|---|---|---|---|
| Transaction-based commission | A percentage is taken from each sale made through the platform (e.g., Airbnb, Vinted). | No upfront cost for sellers | Low revenue if sales volume is low |
| Subscription | Users pay recurring fees to access the marketplace or premium features (e.g., LinkedIn Premium, some freelance platforms). | Recurring and predictable revenue | May slow down initial user acquisition |
| Listing fee | Providers pay to post an offer. Common in platforms for professionals or specific categories (e.g., Craigslist, Leboncoin). | Generates revenue even without sales | May limit the number of listings |
| Promotion/Boosting fee | Paid option to increase the visibility of an existing listing (e.g., Upwork, Leboncoin). Often used alongside another model. | Generates revenue even without sales | Requires volume to be effective |
| Advertising & partnerships | Monetization through sponsored ads or brand partnerships (e.g., Amazon, eBay). | No direct cost for users | Needs high traffic to attract advertisers |
| Hybrid model | Combines multiple models to diversify revenue and fit the audience. | Flexible and diversified income | More complex to manage and optimize |
How do you choose your business model?
- Assess your audience: What is your users’ ability to pay? Which models are the most widely accepted in your sector?
- Study existing models: What business models are adopted by other similar marketplaces? What are their strengths and weaknesses? Can you propose a more competitive or innovative approach?
- Test and adjust: It’s possible to evolve based on user feedback and initial performance.
Your business model has a direct impact on your marketplace’s strategy and profitability. Make sure it’s viable, attractive and scalable.
No need to build a complex and expensive platform from the start. By developing a MVP (Minimum Viable Product), you create an initial version of your marketplace with only the essential features to test your market and assess user interest. This approach allows for quick iterations based on early user feedback and helps refine your platform step by step.
Why Start with an MVP?
- Optimize development: Avoid building features your users don’t expect or won’t use.
- Reduce risk: Validate your concept with limited investment before allocating major resources.
- Fast iteration: Adjust your platform based on feedback from early adopters.
- Shorter time-to-market: Launch a working version quickly instead of waiting months for a “perfect” product.
Essential MVP Features for a Marketplace
Your MVP should include the following key features:
- User registration/login
- Creation and management of listings
- Basic search and filtering system
- Messaging between users
- Secure payment system (if your model involves transactions)
What Are Your Options to Build a Marketplace?
You have several options depending on your budget and technical skills:
- Turnkey solutions: Ideal for a fast launch without complex development (e.g., Sharetribe, Kreezalid, Medialem).
- Custom development: For a fully personalized platform, but more expensive and time-consuming.
- Hybrid solutions: Using an existing base with custom developments to meet specific needs.
Comparison of Marketplace Building Solutions
Here is a comparison of various marketplace creation tools, including features and price ranges:
| Marketplace Builder | Price | Features & Specificities |
|---|---|---|
| Medialem | From €189/month | Flexible SaaS solution for selling, renting, services, and classifieds. Secure hosting, transaction management, payment module, responsive support. Local expertise and compliance with French regulations. |
| Cocolabs | On request | Specialized in service marketplaces with booking and payment features. Not suitable for physical product sales. |
| Wizaplace | On request | Turnkey solution for B2B marketplaces with prebuilt modules. Limited customization options. |
| Builder.ai | On request | Good for an app marketplaces with some features and customization. |
| Softr | €269/month | Flexible solution for selling, renting, and services. Standardized approach. |
| Sharetribe | From $99/month | Ideal for quickly launching a small marketplace. Limited for complex projects. |
| CS-Cart | From €49 (basic license) | Lifetime license with limited customization; requires development expertise. |
Medialem: A Flexible Solution for Your Marketplace
If you don’t have in-house technical skills, a specialized solution like Medialem can support you in building your marketplace. Thanks to its modular architecture, it covers multiple types of platforms:
- Multi-vendor e-commerce marketplaces
- Booking platforms
- Subscription-based directories
- Platforms with advanced matching algorithms
Each project is tailored to your specific needs to ensure a scalable and adapted solution.
Attracting and balancing supply and demand
Launching Your Marketplace Isn’t Enough
Just launching your marketplace isn’t sufficient. In the beginning, it’s unknown — and without specific actions, it will remain empty. Additionally, to improve conversion rates, you need to maintain a balance between supply and demand. Without supply, users won’t find what they’re looking for and won’t convert. Without demand, sellers or service providers won’t be interested in listing their offerings.
Activate the Right Acquisition Channels from Day One
To attract your first users, you should test multiple acquisition channels:
SEO (Search Engine Optimization): SEO takes time to deliver results but builds long-term visibility. Focus on proper site structure, content optimization, and high-quality backlinks. Think of tools like Ahrefs, SEMrush, and Google Search Console to guide your strategy.
Paid Search (Google Ads): Pay-per-click campaigns can bring immediate traffic by targeting specific keywords. Set up conversion tracking to monitor ROI and optimize your campaigns effectively.
Paid Social Media Advertising: Platforms like Meta Ads (Facebook/Instagram), LinkedIn Ads, or TikTok Ads offer precise targeting based on interests and behaviors. As with paid search, make sure to measure conversions to identify what’s actually working.
Organic Social Media: Build a consistent and engaging presence. Share helpful content, start conversations, and aim to create viral or community-focused posts. Organic growth takes time but builds trust.
Influencer Marketing: Collaborating with influencers can boost awareness and trust. Micro-influencers (smaller followings) are often more affordable and highly effective in niche markets thanks to their close relationship with their audience.
Other channels: Depending on your niche, consider specialized forums (e.g., Reddit communities), in-person events (trade shows, conferences), PR outreach, or word-of-mouth campaigns.
Check out our training programs to boost your visibility through SEO and Google Ads.
Direct Outreach: Still Very Effective in Certain Markets
In some cases — especially in B2B or service-based marketplaces — direct outreach can be a powerful way to spark initial activity. This involves building lists of businesses or professionals and contacting them personally to introduce your platform.
This strategy helps you:
- Acquire high-quality early users
- Better understand their needs
- Identify potential friction points
- Fine-tune your value proposition
Start with a Niche to Maximize Impact
One of the most effective strategies is to start small and focused, then expand later. You can target:
A specific category: For example, if you’re launching a marketplace for baby products, start by onboarding stroller sellers and targeting parents shopping for strollers before expanding to other baby categories.
A specific geographic area: If you’re building a local service marketplace, focus first on one city or region. Recruit enough providers in that area, then run targeted campaigns to attract clients in that specific location.
This “focused density” approach helps you create a more complete offering in a defined space — improving both conversion and user experience.
Optimize the Acquisition Funnel
Success isn’t just about bringing traffic. You need to optimize the entire user journey:
Acquisition: Use the right channels to attract both supply-side (sellers/providers) and demand-side (buyers/clients) users.
Conversion: Ensure visitors take action once they land on your platform — whether that’s signing up, posting a listing, or making a purchase.
Retention: Encourage repeat activity — reposting listings, renewing subscriptions, or making recurring purchases.
Also check out our article on who to attract first on a marketplace to dig deeper into this topic.
Remember: attracting users on both sides of your marketplace is a continuous process. Your goal is to create a virtuous cycle — where supply attracts demand, and demand attracts supply.
- Zakaria – Founder & Marketplace Expert
- Last modified on 25/08/2025
Legal Essentials for Running a Marketplace in the U.S.
What Legal Structure Should You Use for a Marketplace?
There’s no specific legal status required for a marketplace in the United States. You can operate your platform under various legal entities depending on your goals, team, and funding plans, such as:
- Sole Proprietorship (for small projects starting out)
- LLC (Limited Liability Company) – common for startups due to its flexibility and liability protection
- C-Corporation or S-Corporation – often used for ventures aiming to raise external funding or scale quickly
It’s important to consult with a legal advisor or CPA to choose the right structure based on your business plan and long-term vision.
Key Legal Obligations
Terms & Policies (TOS / Privacy / Seller Policies)
Your marketplace must clearly display legal information about the business (e.g., company name, EIN/tax ID, contact info) and make available the following:
- Terms of Use (TOS): define how users (buyers and sellers) interact with the platform and with each other
- Terms of Sale (for sellers): outline seller responsibilities, return/refund policies, fees, and tax obligations
- Privacy Policy: required by law in most states, especially if you collect personal data — must explain how data is collected, stored, and used
These documents are essential not only for transparency but also to limit liability.
Data Privacy (CCPA, GDPR, etc.)
If your marketplace collects personal data, you must comply with data protection regulations, such as:
- CCPA (California Consumer Privacy Act) for California residents
- GDPR if you serve European users
- COPPA if your platform could attract users under 13 years old
A clear privacy policy is mandatory, and you must give users the right to access, modify, or delete their data. Many SaaS marketplace platforms or hosting providers include privacy compliance features, but you are ultimately responsible for your site’s compliance.
Industry-Specific Regulations
Depending on your niche or vertical, specific regulations may apply. Examples include:
- Short-term rentals (e.g., vacation homes): may require collection of local occupancy taxes and adherence to city-specific laws
- Food & beverage marketplaces: must comply with health and safety standards (FDA, USDA)
- Healthcare or financial services: may require licenses, certifications, or data encryption protocols (HIPAA, FINRA, etc.)
- Peer-to-peer selling: may be subject to income reporting rules and anti-money laundering regulations
Always research your vertical to ensure your marketplace is compliant with federal, state, and local laws.
Tax Obligations for Marketplace Operators
If your platform facilitates payments and takes commissions, you may have additional tax responsibilities, including:
- 1099-K Reporting: In the U.S., marketplaces that process payments are required to issue a Form 1099-K to sellers once they exceed $600/year (as of recent IRS updates). You’ll also need to report these payments to the IRS.
- Sales Tax Collection: Under the Marketplace Facilitator laws in most states, if you enable transactions between sellers and buyers, you’re often required to collect and remit sales tax on behalf of your sellers — particularly for tangible goods.
- International Sales (VAT/GST): If you’re facilitating cross-border transactions (e.g., U.S. buyers purchasing from foreign sellers), you may need to collect VAT or ensure customs compliance, especially for digital products.
Marketplace tax rules have evolved significantly in recent years, so it’s essential to stay up to date and consult a tax professional to avoid penalties.
