If you have a marketplace project in mind, you have come to the right place. Whether you want to create a general marketplace or one that focuses on a specific niche (sector, domain, target, particular types of products, etc.), we explain here how to make your project a reality at the best price.
Before creating a marketplace, it is important to think through your idea and to clearly define your objectives in terms of the target market, the products or services offered and the key features.
Once you have clarified this initial idea (which may evolve over time), here are the steps to follow to create a marketplace:
The study of the target must be done continuously, both before and after the creation of your marketplace. The objective here is to know your target both on the buyer’s side and the seller’s side. What are their needs and interests? How do sellers propose their offers (which channels they use, how they promote their offers…)? How do buyers search for these offers (keywords on search engines, social networks used, ecommerce sites or marketplaces used…)?
It is important to stay in touch with your audience to understand their needs and to be able to adapt your value proposition accordingly. Ultimately, this may even help create your own community that will benefit your marketplace.
The study of your target market coupled with the analysis of the main players in your sector of activity (competitors, alternatives, etc.) should enable you to determine whether your marketplace idea has the potential to succeed. Here are some things to consider when researching the market for your future marketplace:
Gather as much information as possible to get a complete picture of your market. You can use different sources for this, such as specialised websites, market research, physical exhibitions, industry data, case studies, blogs, online forums, discussion groups on various social networks (identify which social networks your target audience uses most)…
It is difficult to set a precise budget for creating a marketplace without determining the details of your project. However, here are some things to consider when setting a rough budget:
It is important to note that these costs can vary greatly depending on the complexity of your project, the functionality required and the quality of the developers and designers you hire. There are several players that offer solutions for creating a marketplace, such as Mirakl, Izberg, Wizaplace, Sharetribe and Medialem. Each of them has different offerings, with varying costs and functionality. For example, Wizaplace and Mirakl offer standard packages at over €100,000 plus monthly fees, while Sharetribe offers packages between $79 and $299 per month, but with limited functionality. Izberg does not disclose its prices, but you have to count the integration fees, a monthly user licence and the costs related to the development of the front-end which is left to the client. At Medialem, we offer rates with an optimal quality/price ratio (a good order of magnitude for a very complete MVP is between 9.500€ and 15.000€). If you want to know more about our rates, you can check our price examples.
The value proposition is a key element of any project that aims to create a marketplace, as it defines what makes your business unique and what differentiates it from the competition. To define your marketplace’s value proposition:
Your value proposition may evolve over time and it is advisable to re-evaluate it regularly to ensure that it still meets the needs of your target audience.
Decide on the most suitable business model for your marketplace, taking into account the different options available and the advantages and disadvantages of each.
The choice of business model is a key element in setting up a marketplace, as it determines how you will generate value and how you will be paid. There are several possible business models for a marketplace, such as commission, subscription, advertising…. Here are some things to consider when deciding on your marketplace business model:
Keep in mind that the choice of business model can have an important impact on the strategy of your marketplace, for more details on this aspect, see our article on the business model to choose for your marketplace.
It is important to develop an MVP (Minimum Viable Product) to start your marketplace, as this will allow you to test your market and gauge user interest in your marketplace before you spend a lot of money on development. It is also important to keep improving your marketplace over time based on feedback from your users.
There are several ways to develop your marketplace, but if you don’t have the technical skills in-house, you can use a development agency that specialises in creating marketplaces like Medialem. We use a modular architecture to manage all possible workflows on all types of marketplaces, so the possibilities are very varied. It can be a multi-boutique e-commerce site, an online reservation site, a directory of adverts sites with subscriptions or to create platforms with advanced matching processes (matching algorithm, specific processes)… It can also be a mixture of several elements and each marketplace can have very specific functionalities.
In 2023, marketing is an integral part of business communication strategies. Therefore, develop a marketing strategy to attract sellers and buyers to your marketplace (or more generally, offerers and seekers if it’s not about buying/selling).
Here are some actions you can take to attract buyers and sellers to your marketplace:
Acquiring suppliers and requesters is an ongoing process. The aim is to create a virtuous circle so that supply attracts demand and demand attracts supply.
The creation of a marketplace also implies the establishment of an appropriate legal framework in order to guarantee the protection of the users and creators of the marketplace. To do this, a few key elements must be taken into account:
Do not hesitate to contact a legal specialist or lawyer for further information.
At Medialem, we offer custom marketplace development to meet the unique needs of each project. Our flexible and scalable platform allows us to support the particularities of each project, whether it be the business model, the matching process, the categorisation of ads or profiles, the specificity of the products or any other element on the site even if it is not a specific feature of a marketplace.
By opting for our custom development solution, you benefit from a fully customised platform that perfectly meets your needs. In addition, you have ownership of the source code, so you are not dependent on an external solution.
Our service is not limited to development but also includes support throughout the project. Every good project starts with a good specification. We make sure to have understood all the needs of our customers before establishing the technical specifications of the project. We bring our expertise on marketplaces and networking platforms, webmarketing and the world of the web in general to guide and be proactive at each stage of the project. In particular, we support our clients after the launch of the project on services such as growth hacking and webmarketing.
SEO - SEA
Do you want to create a site like Leboncoin, Vinted or the future Amazon? We can organize a point to discuss your project in order to clearly identify your needs. This will be an opportunity to give you a demonstration of how our marketplace platform works.