Custom eCommerce Development vs Readymade Marketplace Software

Confused between build or buy your marketplace software. Don’t bet between custom and off-the-shelf marketplace software until you are ready to make an informed decision.

Software is the foundation of your eCommerce business. Therefore, careful consideration is essential to decide between the two popular approaches, custom or readymade, to build your online marketplace. However, before we start the comparison, let’s take a look at the need for online marketplace software.

Today, a large number of businesses worldwide and aspiring entrepreneurs are entering the eCommerce industry. Talking about the motivation to join, the answer is the industry’s potential and growth opportunities.

Over the past few years, the eCommerce landscape has grown at a good pace and the growth is driven by the increased number of online shoppers. Numbers are interesting; you should take a look.

Out of the 8 billion worldwide population, about 33%, means 2.64 billion people, reported shopping online in 2023 and is expected to cross 2.77 billion by 2025. Again, the global eCommerce sales are expected to reach $8 trillion by 2027. The numbers indicate that the industry has huge growth potential and the idea of building an online marketplace will work in the upcoming years.

So, let’s get back to the solution to build your online marketplace.

Table of Contents

Overview of Custom eCommerce Marketplace Development

eCommerce development involves the process of developing a marketplace from scratch. The developers build the marketplace according to the unique business needs to offer personalized experiences to the customers and the platform users. From ideation to implementing code, designing to developing features and testing to deploying the final product, the entire process required proper planning, time, investment and execution. However, it's a time-consuming process that requires a higher investment.

Steps involved in building a custom marketplace:

Overview of Custom eCommerce Marketplace Development

Overview of Off-the-Shelf Online Marketplace Software

An off-the-shelf marketplace software is a white-label solution. You can simply purchase and own the software to build your online marketplace. It supports all essential features and functionalities required for a fully operational eCommerce marketplace. Unlike custom development, these off-the-shelf marketplace software don’t require additional time, money, expertise and more. By choosing this approach, you can tap into the market within a few days or weeks.

Steps involved in building a marketplace Using Off-the-Shelf Marketplace Software:

Overview of Off-the-Shelf Online Marketplace Software

Key Differences: Custom eCommerce Development vs Off-the-Shelf Marketplace Software

Many entrepreneurs and business owners struggle to decide between custom and readymade marketplace software. Both approaches bring several advantages and disadvantages. Therefore, you can’t go impulsively with anyone just because one offers more control or another one is cost-effective. Many more considerations are needed to finalize the most reliable option to build your marketplace.

There are several key differences between custom and off-the-shelf marketplace software that you should be aware of. Let’s explore them in detail and decide the best approach to build an online marketplace.

Which One of These Approaches is Cost Effective?

Marketplace development cost is not something you can decide or calculate the exact amount, as it can range widely. However, cost consideration is crucial for effective budgeting, especially when it comes to choose a cost-effective approach to build a marketplace.

Custom-Built Marketplace:

Building a marketplace from scratch requires significant investment. A marketplace with basic features can be launched with up to $50000. However, an advanced and feature-rich marketplace, from ideation to developing and deploying the final product, can cost you anywhere between $30000 to $200000 or even more. In between, several more expenses may arise that you can’t decide in the early stages of development.

Here's a breakdown of the cost and time by development phase:

Market Research, analysis and planning:
  • Budget: 10 to 15% (of Total Expected Amount)
  • Time: 1-2 weeks
UX/UI Design, Wireframing and Prototype:
  • Budget: 10 to 15% (of Total Expected Amount)
  • Time: 2-4 weeks
Development; Front-end, back-end, integrations and others:
  • Budget: 50 to 60% (of Total Expected Amount)
  • Time: 3 to 9+ months
Testing and quality assurance:
  • Budget: 10 to 15% (of Total Expected Amount)
  • Time: 2-4 weeks
Deployment and final launch:
  • Budget: 10 to 15% (of Total Expected Amount)
  • Time: 1-4 weeks

Note: Please remember this is only an estimation, the final cost or percentage can be more or less depending on project size, complexity, tools and resources required, developer’s experience, expertise, location and other factors.

Off-the-Shelf Marketplace Software:

On the other hand, building an online marketplace with an off-the-shelf solution doesn’t require a higher investment. You can start your eCommerce marketplace in a few hundred dollars, ranging from $500 to depending on your marketplace requirements and selection.

Final Words: Developing a marketplace from scratch can cost you more than building using a readymade software. According to the above explanation and pricing details, you can decide which one of these solutions is cost-effective for you.

With the readymade marketplace software like Yo!Kart, you can launch your eCommerce platform starting at $499, which is much lower than building from scratch.

Time to Launch Your Online Marketplace

You can build and launch your marketplace using both approaches easily. However, which one of the approaches, between custom marketplace development vs off-the-shelf marketplace software, can help you launch your eCommerce platform quickly?

Custom-Built Marketplace:

Typically, building a marketplace from scratch requires significant time, depending on the complexity and features you are looking for. It may take months to build a feature-rich eCommerce platform.

Off-the-Shelf Marketplace Software:

With ready-to-use software solutions, you can launch your marketplace quickly with minimal setup. The process is very simple: you search for the solution, compare and find the best fit, approach the best partner, make payment, own the software, and then set up and launch. It hardly takes a few days to weeks. However, extensive customization needs can increase the timeline.

Final Words: Off-the-shelf marketplace software enables businesses to launch their eCommerce platform faster than developing a marketplace from scratch.

With Yo!Kart, you can launch your marketplace within 4 days. Again, extensive custom requirements can increase the timeline.

Custom vs Readymade: Which is more Flexible with Customization?

Customizable solutions are the primary need of any marketplace solution. It helps businesses tailor their platform based on their target audience, brand’s guidelines, customer preferences and many more. The more the software is customizable, the more you tailor it to your unique business needs.

Custom-Built Marketplace:

Undoubtedly, building a marketplace from scratch is more flexible with customization than any other approach. However, it depends on the quality of coding, technology used, options given and more.

Off-the-Shelf Marketplace Software:

Comparatively, off-the-shelf marketplace software can be less customizable than a solution built from scratch. However, readymade marketplace software available in the industry that are fully customizable. They provide source code ownership that enables code-level access in case of looking for extensive customization options.

Final Words: Both custom-built marketplaces and off-the-shelf software can be easily customized; the readymade marketplace software also offers source code ownership and code-level access to enable extensive customization options.

Yo!Kart is a 100% customizable eCommerce platform that provides source code ownership.

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Custom vs Readymade: Which is Designed with Scalability in Mind?

An easily scalable marketplace software is built to handle the growing demand of the marketplace. They can expand with a growing user base, number of transactions, inventory and more without any operational issues or performance degradation.

Custom-Built Marketplace:

A custom-built eCommerce marketplace is generally designed to expand with your growing business's needs. They don't require additional integrations and major updates to support scalability. Their architecture is designed in such a way that it can be future-proof and support growth and expansion.

Off-the-Shelf Marketplace Software:

Scalability can be a challenge if you haven’t selected the right off-the-shelf marketplace software. Therefore, choose the right solution that is fully scalable and easily expandable with your growing business’s needs. In short, with off-the-shelf marketplace software, your selection determines whether the marketplace will support scalability or not.

Final Words: The Custom marketplace is designed to cater to specific businesses' needs and growing demand. On the other side, a few readymade solutions don't support integration with existing systems, and businesses face performance degradation when traffic or the number of transactions increases.

However, Yo!Kart is a fully scalable off-the-shelf marketplace solution that can easily expand with your growing business. This readymade software allows seamless integration, supports the addition of several required features and functionalities and more.

Custom vs Readymade: Which Type of Software Offers Greater Control and Ownership?

Ownership and control over the marketplace means eliminating dependency on third-party software providers for hosting, server, customization, integrations, scalability and many more.

Custom-Built Marketplace:

Custom-built eCommerce platform offers complete control and ownership of the marketplace. The solution is entirely built from scratch and it belongs to you. You have complete access to the source code, and you own it.

Off-the-Shelf Marketplace Software:

On the other hand, off-the-shelf marketplace software also provides complete ownership and control over the eCommerce platform. However, not all the readymade marketplace software is the same. There are a few that provide a similar level of control and ownership, like custom-built marketplaces and some may lack.

Final Words: Definitely, a custom-built marketplace offers more control and ownership over the platform than a readymade marketplace software. However, the level of control and ownership that readymade marketplace software offers depends on whether it provides source code ownership or not.

Yo!Kart provides source code ownership as well which enables complete control and ownership over the platform.

Custom vs Readymade: Compatibility with Third-party Integrations

Compatibility with their-party integration means the ability to support additional integration in the existing system. Many businesses seek third-party integration options to enable additional features, functionality and more. Therefore, compatibility with third-party integration is important.

Custom-Built Marketplace:

Custom-built eCommerce marketplace ensures easy integration with third-party apps within the existing system. Their infrastructure is designed to support integration without any performance issues. With a custom-made platform, you get access to the source code and architecture that allows you to integrate without technical barriers.

Off-the-Shelf Marketplace Software:

Not all off-the-shelf marketplace allows seamless integration with third-party APIs and tools due to their fixed and non-customizable architecture. However, Yo!Kart is among the popular off-the-shelf marketplaces software available that is built to ensure compatibility with third-party integrations with no technical challenge. In addition, this type of marketplace software comes with the essential pre-integrated APIs and tools required for a fully operational eCommerce platform.

Final Words: On the one hand, custom software is compatible with third-party integration. On the other hand, readymade marketplaces software also supports seamless integration if built with the right technology.

Yo!Kart comes with all essential APIs and tools required and provides complete freedom when integrating with third-party apps to cater to evolving needs.

Custom vs Readymade: Maintenance and Technical Support

Software is built with technology and technologies need time-to-time updates and maintenance. Regular updates and maintenance help businesses ensure user satisfaction, fix bugs and errors, establish security parameters, resolve performance-related issues, upgrade latest features and functionalities and more.

Custom-Built Marketplace:

Technical support and maintenance can be a challenge with a custom-built eCommerce marketplace. Businesses need to establish an in-house team for regular updates and maintenance. However, it may cause a burden to the investment.

Although this is necessary, you also can't deny that a long-term investment can cause significant expense.

Off-the-Shelf Marketplace Software:

Readymade marketplace software providers typically offer technical support and maintenance services for time-to-time updates, performance optimization, bug fixes and security updates and more. The marketplace owner doesn’t need to establish an in-house team or recruit experts for it.

Final Words: In custom-built marketplace development, the marketplace owner is responsible for technical challenges, maintenance, updates and upgrades.

However, on the other side, when you choose off-the-shelf marketplace software, the software provider takes charge of technical issues, bug fixes, performance optimization and many more.

Yo!Kart provides a dedicated project manager to guide you throughout the journey from installation to fixing any unexpected issues and bugs or errors.

Custom Development vs Off-the-Shelf Marketplace Software: Which is Better?

However, you have gone through the above key comparisons that may help you decide which one of the approaches can fit your unique business needs. Alongside, let’s take a quick overview of custom development vs off-the-shelf marketplace software in the table below and decide the most appropriate one.

Key Aspects Custom-Built Marketplace Off-the-Shelf Software Conclusion
Best for Businesses with unique and complex needs Businesses looking for standard marketplace features Both are good. A readymade solution can also meet unique and complex needs.
Budget A higher investment is needed Can launch a marketplace with minimum investment Off-the-shelf software is more cost-effective as the development cost is distributed among multiple buyers.
Time to Launch Takes a longer time due to several reasons (may take months) Allows you to build and launch a marketplace quickly With readymade software, you can launch your marketplace in a few days or weeks.
Integration Compatibility Enables seamless integrations Allows seamless integrations if built with the right technology A custom solution can be more compatible. However, a right readymade software also supports integrations.
Customization Flexibility Fully customizable Partial or fully customizable Both solutions are customizable. However, a custom solution can be the winner.
Scalability Support Built with scalability in mind Scalability can be a challenge if not selected the right one Custom-built and readymade software are both scalable if built with scalability in mind.
Support & Maintenance Developers are needed and available at an additional cost Initially free for a limited period; charges may apply for extended requirements Readymade solutions can be better when it comes to support, maintenance, and updates.
Control & Ownership Complete control over infrastructure, source code, and more Partial or complete (depends on licensing type) Custom development offers full access, though some readymade solutions also offer complete ownership.
Pricing Model You can choose any one of these pricing models, such as Project-based, Team-based, & Hours or Material-based Licensed (one-time) or Subscription-based (monthly/yearly) With off-the-shelf, you can launch your marketplace with minimum investment.
Threat to Potential Losses Higher, as higher investment is needed Comparatively lower, as lower investment is required Off-the-shelf marketplace software is more reliable when mitigating risk.
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In the above table, you have gone through a comparison between a custom-built marketplace and an off-the-shelf marketplace software. Now, let’s explore how to choose the right approach to build a marketplace.

How to Choose the Right Custom eCommerce Development Company?

The selection of the right eCommerce development company is crucial to building the right platform. It will further ensure the success or failure of the marketplace. If you are also one of those entrepreneurs, startups or existing business owners looking for a custom development company, below tips can help you find the right one.

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Evaluate Technical Expertise: When recruiting an eCommerce development company, it is crucial to ensure whether the team is proficient in programming languages, frameworks and other technical requirements or not. This evaluation further ensures you are working with experts who will deliver quality products.

Cost Considerations: Compare pricing and choose the best development partner offering value for money. Be careful, cost considerations don’t mean to choose the cheapest option. Always compare services and prices together. If the company’s services are costly, but they are delivering value for money, then go with them. Otherwise, choosing the cheapest one can cause a big loss in the future.

Industry Experience: Checking industry experience will help you find the right custom marketplace development partner who has worked in the eCommerce industry. A company with similar project experience will deliver more quality and help you build a feature-rich platform.

Check Portfolio and Testimonials: You can check portfolio, client testimonials, case studies, reviews and ratings on the popular platform like Clutch to ensure facts that companies often present to onboard clients.

Technical Support: A software requires continuous technical support to resolve unexpected bugs and errors, performance-related issues, and many more. Therefore, ask the company for post-launch technical support options. Also, decide on the type of engagement model for the same, including costing if possible.

Time Management Skills: On-time project delivery is paramount. Always onboard an eCommerce development company that avoids delays and completes projects within a given timeframe. This will further help you tap into the market first by giving a competitive edge.

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How to Choose the Right Off-the-Shelf Marketplace Software

To choose the right off-the-shelf marketplace software, you need to be careful about a few key points. Let’s explore how to find the right off-the-shelf marketplace software.

How to Choose the Right Off-the-Shelf Marketplace Software

Product Type: A white-label marketplace software is needed to rebrand the solution as your own. It allows you to operate your business under your brand, helping you establish your brand’s identity and customer loyalty.

License Type: Whether you are getting a lifetime access to the software or license renewal is required every year or after a certain period. It is preferred to choose a license that offers lifetime product ownership.

Payment Model: There are two popular payment models that the industry primarily follows:

  • Recurring-based: In this payment model, you need to pay monthly or yearly recurring or subscription fees. The charges may increase or decrease based on the number of transactions, sales and other additional requirements. This type of solution also incurs several hidden charges.
  • One-time payment model: In this type of payment model, you pay once in a lifetime to get lifetime ownership of the software without any limitations.

In conclusion, a one-time payment model is preferred if you have long-term business goals. With marketplace software like Yo!Kart, you can launch the eCommerce platform by paying a one-time $499 only, which is almost equal to most of the recurring-based platforms with advanced features and functionality.

Ownership and Control: The ownership and control over the marketplace means the freedom to use, manage, customize, scale and more. Ask for the access you have, including access to the source code.

Flexibility with Customization: Every business has its unique brand identity, target audience, guidelines and more. A customizable marketplace enables businesses to tailor the platform to align with their specific requirements.

Scalability Support: A Scalable marketplace easily accommodates growing businesses' needs, making it a future-proof solution. Ask the software provider whether the solution is scalable or can't handle the growing demand of the business.

Technical Support: Technical support during setup and installation is paramount when you build a marketplace using off-the-shelf software. In addition, further assistance is also required because you are not familiar with the software, its code and many more.

Check Portfolio and Review: If you find any of the software is relevant to your marketplace requirements. Don’t hesitate to check the portfolio, case studies, testimonials and ratings and reviews on popular sites. This will further guide you to make an informed decision and also boost confidence to say yes or not.

Explore Demo: Exploring the demo also helps you understand workflows, explore features, experience UX/UI and check performance. In this way, you can decide whether the software fits your specific needs or not.

How FATbit Can Help: Building a Custom Marketplace vs. Choosing Readymade Marketplace Software

FATbit is a leading IT services provider. No matter whether you are looking for custom development or a readymade marketplace software, we cater to all your needs related to eCommerce.

FATbit Technologies, the team behind Yo!Kart has years of experience in the eCommerce industry and has helped a large number of global businesses with their unique marketplace needs. We have introduced a variety of readymade software solutions focusing on eCommerce and online marketplaces.

Our highly qualified industry experts are proficient in the latest technologies and programming languages required to build a robust online marketplace. They help you craft a solution that meets industry standards and offer an enhanced online experience for distinct user types.

However, if you are still confused between custom and readymade marketplace software, connect with us, and we will guide you through every step of building your marketplace. Our specialized experts will help you decide the best approach according to your specific marketplace needs and target market.

Why Choose FATbit Technologies for Custom Development Services?

Why Choose FATbit Technologies for Custom Development Services

Pre-vetted Developers: FATbit’s experts are proficient in different programming languages and the latest technologies. Whether you are looking for web app development or mobile app development services for your eCommerce business, we offer complete solutions.

Flexible to Adapt Changes: We always ensure a seamless development process. Our experienced development team is flexible with your uncertain project requirements and can easily adapt to changes, making you feel comfortable.

Lower Development Cost: If you are one of the business owners tight with budget, FATbit Technologies can help you save lots of money. Our expertise in the industry saves time and puts effort in the right direction, which leads to a cost-saving approach.

Flexibility and Scalability: With FATbit, you get complete control over the development process and timeline. We provide flexibility to scale up or down the team according to your development needs.

Effective Collaboration: Our team fosters effective collaboration with clients. Each one of our team members comes from a strong cultural background and is proficient in the English language which ultimately benefits when collaborating with clients with diverse cultural backgrounds and languages.

Quality in Deliverables: FATbit is committed to delivering quality services. We always ensure you find the right professional for your project to help you build the exact platform you are looking for.

Why Choose Yo!Kart Marketplace Software?

Why Choose Yo!Kart Marketplace Software

White-Label: Yo!Kart is a white label marketplace solution that allows you to rebrand your platform as your own.

One-time Payment: The marketplace software is available at a one-time payment option for a lifetime license, with no recurring or subscription charges.

Fully Customizable: Yo!Kart offers complete flexibility when customizing your marketplace. From CMS level to code level access, you gain complete control.

Support Growth: The platform is designed with scalability in mind. With Yo!Kart, you can easily expand your marketplace reach, transactions, user base and more without worrying about performance-related issues.

Source Code Ownership: To provide you complete control and ownership over your marketplace platform, Yo!kart offers source code ownership that helps you gain complete access.

Dedicated Support: Once you start your journey with Yo!Kart, you don’t need to worry about anything, including bugs and errors that you might encounter. Our dedicated and free technical support helps you overcome the situation promptly at no additional cost.

Final Thought

The debate between custom and readymade marketplace software has not started today; it has been for years. Whenever you think of software or building a digital platform, the two primary options come to mind: should I go with a readymade one or should I build a marketplace from scratch?

I hope by reading this guide on choosing custom-made marketplace versus readymade marketplace software, you can make an informed decision and choose the best option for your eCommerce business.

Alongside, if you seek experts to help you out of this overwhelming situation, FATbit and its team are always there to help.

FAQs

Which is the best off-the-shelf marketplace software?

Yo!Kart is the best off-the-shelf marketplace software that allows businesses to build, launch and operate their online marketplaces effortlessly. With Yo!Kart, you don’t need technical or coding expertise; an individual with no technical background can also build a marketplace.

Who should choose custom development to launch a marketplace?

Businesses with complex and unique marketplace needs can choose custom development. This approach will enable them to craft a solution that aligns with their specific needs.

However, readymade software like Yo!Kart also allows businesses to tailor the platform according to their specialized needs, similar to a custom platform.

Who should choose off-the-shelf marketplace software?

Entrepreneurs and business owners seeking a quick and reliable option to build a marketplace prefer off-the-shelf solutions. This type of market-ready software solution comes with all the essential features and functionalities required to operate an online marketplace effortlessly.

How much does it cost to build a marketplace?

The cost of building a marketplace is not fixed. It varies depending on your marketplace requirements, development approach, integrations and others. However, talking about the numbers

  • A custom-built marketplace can cost anywhere from $30000 to $200000 pr even more.
  • On the other hand, launching a marketplace with off-the-shelf software is really cost-effective. You can launch your marketplace with readymade software like Yo!Krt at $499.
Can I launch my own multi-vendor eCommerce platform with Yo!Kart?

Yes, with Yo!Kart allows you to launch your own multi-vendor marketplace platform effortlessly.

Can I customize Yo!Kart?

Yes Yo!Kart is a fully customizable eCommerce marketplace software that allows you to tailor the platform to specific business requirements. From CMS to code-level access, it provides complete freedom when it comes to aligning the marketplace with your business needs.

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