How to Build a Successful eCommerce Marketplace in 2023

How to Build a Successful eCommerce Marketplace in 2023

Views - 630
Leave a Comment

The popularity of e-commerce marketplaces has increased significantly, even more than that of online stores. There are many examples of successful eCommerce marketplaces like Amazon, eBay, Etsy, and others. According to Statista, in 2021, Amazon’s overall consolidated net sales revenue was $469.82 billion, with international revenue channels contributing $127.78 billion. 

North America was the biggest operations segment, accumulating over 279 billion U.S. dollars in net sales during the year.

But, before moving further it’s important to know all about eCommerce marketplaces. 

An eCommerce marketplace allows vendors to sell their goods and services to customers. It connects customers and sellers, however, unlike an eCommerce store, it has many suppliers. 

In this blog, we will guide you on how to create a marketplace that can become a flourishing business.

Table of Contents:

Reasons Why Building an eCommerce Marketplace is a Good Idea

The eCommerce marketplace is a platform that facilitates buying and selling while providing something for everyone. Furthermore, having a large number of online vendors leads to the growth of the business and offers an ecosystem where everyone benefits. 

According to Statista, 43% of consumers currently use the internet and social media to research products before buying and it can be predicted that in the US eCommerce sales will be worth around $470 billion in the coming years. We expect a significant expansion in the number of marketplaces soon, especially because the eCommerce industry is increasing rapidly every year.

Benefits of eCommerce Marketplaces over a Single Store

Let’s Explore! Why should entrepreneurs spend their resources creating a marketplace? 

  • Easy to Start and Maintain Without the Need for an Inventory

The significant benefit of building an eCommerce marketplace is that owners don’t need to invest heavily in the stock acquisition and its management because it is all held by third parties. 

The main focus is to provide the best platform for the customers. As a result, they can give their full attention to improving the experience of their customers and customizing the marketplace according to their demands.

  •  Low Operation Cost

Another benefit of having a marketplace is that you don’t have to make physical stores at all the locations where you want to sell your products/services, a marketplace can help you with this. 

Additionally, managing inventory is not something you have to spend time and money on when developing a multi-vendor marketplace website. The sellers running the marketplace are responsible for all of these duties.

In this way, you can concentrate just on starting and promoting your business on social media and other digital channels, while using the website to expand its services on an international level. This also means that the team size is also gradually reduced, which further lowers the cost of management.

Best Practices to Build an eCommerce Marketplace

Here are some vital steps to keep in mind before building a successful eCommerce marketplace.

Plan and Research Before Starting an eCommerce Business

There are some more methods that help you to build a successful marketplace business.

  • Competitor Analysis

Doing some research on the top-rated competitors of your industry can help you in so many ways. You can get many ideas by exploring their products, history, as well as their business models. Learn what people are looking for in your niche and try to deliver it in your unique style.

  • Choose Your Niche

Finding the right niche is important before building a successful e-commerce marketplace. Start by doing market research once you’ve decided what kind of business you’ll be running.

As the eCommerce industry has experienced such rapid growth, it’s also important to have as many ideas as you can before starting a business in this competitive world. To do this, entrepreneurs should find a specific niche where they can focus their business strategy on a well-defined audience. 

  • Have Some Knowledge About Your Target Market

The right way to start your business is by having a good understanding of the targeted market. Knowing your target audience can give you a general direction for your marketing. And for having a successful marketplace business, you must first understand the market, as well as what your customers are searching for in terms of their needs and the solution. 

An eCommerce marketplace is more successful when they focus on a specific niche because it gives buyers a reason to shop there and a sense of what they can anticipate from the vendors.

  • Pick a Name for Your Business

One of the most difficult aspects of starting an eCommerce business is naming your store. You’ll need to think of something that stands out accurately, defines your brand, and hasn’t been used by someone else. The theme of your business will be set right away by a smart business name.

Keep these points in mind when it comes to naming your business

  • Try to keep it simple
  • Differentiate yourself
  • Be creative
  • Be unique

Choosing the Right eCommerce Business Model

Knowing which category your concept belongs to might inspire creative thought about potential challenges and opportunities. Let’s discuss some business models.

  • Business-To-Consumer (B2C)

B2C is a type of business where companies conduct direct sales to customers, which includes direct selling of products and services. The process of analyzing B2C purchases is shorter than B2B purchases. Amazon is an ideal example of this kind of business.

  • Business-To-Business (B2B)

B2B is a type of business that includes a transaction between a manufacturer and a wholesaler, or a wholesaler and a retailer. B2B refers to transactions that take place between businesses. Generally, B2B models have a longer sale cycle but with bigger order values and more repeated sales.

An ideal example of this business model is Alibaba, a Chinese multinational company specializing in eCommerce, internet, retail, and technology.

Choosing Ideal Revenue Streams

  • Models Based on Subscription

Nowadays, subscriptions have become one of the most popular business models in terms of generating revenue. It is the amount that the seller pays on a regular basis. You need to make sure that your supplier receives greater value from your marketplace than it costs to be the subscriber in this business. 

  • Commission

You charge sellers, a certain percentage of every transaction that takes place on their platform. In this way, you allow them to use your marketplace and in return, you’ll earn a commission on every sale.

Possible Ways in Which eCommerce Websites can be Developed

For creating a multi-vendor marketplace, here are some solutions that help you while building an eCommerce website. Whether you can choose a custom eCommerce solution or a turn-key solution.

  • Custom eCommerce Solution

The custom eCommerce solution is all about creating an eCommerce marketplace from scratch while keeping your specific requirements in mind. You can combine any module of your choice with your customized eCommerce website.

Here are some benefits of using a custom eCommerce solution:

  • Capable of covering all business requirements
  • Improve website support and maintenance
  • Complete access to design and coding
  • Easily scalable
  • Great loading speed
  • Unlimited features
  • Turnkey Solutions

Entrepreneurs can also take advantage of a complete marketplace turnkey solution which is faster, easier, and less expensive. If you don’t want to hire a team of professionals to design and launch a marketplace from scratch, then you must opt for this solution which provides you with a selection of professional-looking marketplace templates that you can design with your content.

Here are some benefits of a turnkey solution:

  • Start-up cost would be low
  • No need for programming 
  • You can typically design and launch a feature-packed site in less than a week.

Build a scalable marketplace with our contemporary solutions

Services Provided by FATbit Technologies

FATbit is a software development company that developed expertise in understanding eCommerce success through the use of Agile methods not only in product knowledge but also in the creation and enhancement of reliable software for customers.

FATbit can assist you in building your website with their affordable inclusive eCommerce solutions. Additionally, the firm provides customized services and post-purchase technical support also. FATbit’s professionals are specialized in creating customized eCommerce stores that are specially designed according to your needs. All the products are created with cutting-edge technologies and are feature-rich.

All the pre-packaged software solutions offered by FATbit are ready-to-implement, highly adaptable, customer-centric solutions to speed up the time to value for all kinds of businesses. 

Here are some software solutions offered by FATbit Technologies:

  1. Yo!Kart
  2. Yo!Kart B2B
  3. Yo!Gigs
  4. Growcer
  5. Yo!Coach
  6. Yo!rent
  7. Yo!yumm
  8. Vivocabs
  9. Yo!Deals

Final Thoughts

We have provided you with a general concept of how to build a successful eCommerce marketplace. Creating a marketplace is a difficult yet manageable process that might take a lot of time. Careful research related to niche, a trading platform plan, and a perfect revenue plan are very important before starting to build a website. Choosing a trustworthy team is one of the crucial aspects. If you want a consultation regarding eCommerce website development feel free to contact FATbit Technologies.

Explore our 20+ purpose-built readymade marketplace solutions for all popular eCommerce niches

Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date. We advise - the readers should not take decisions completely based on the information and views shared by FATbit on its blog, readers should do their own research to further assure themselves before taking any commercial decision. The 3rd party trademarks, logos and screenshots of the websites and mobile applications are property of their respective owners, we are not directly associated with most of them.

Leave a Comment

Reload Image