Let’s start with a small story,
Two young men traveled to San Francisco in 2007 with one goal in mind: to work in the fast-growing IT industry.
They were barely able to pay their rent, so they began looking for ways to get money quickly. The Industry Design Conference was held in San Francisco at this time.
The men paused for a time before deciding to provide airbeds and breakfast to those who had not been able to secure a hotel room.
The first three customers arrived promptly, demonstrating that sharing free space in an apartment or house might be a viable means of supplementing one's income.
Brian Chesky and Joe Gebbia were the two young men whose idea grew into one of the most successful enterprises of our time, Airbnb.
Airbnb is a classic example of an online marketplace, in addition to being a pioneer of the sharing economy. Do you find this business concept appealing?
Great! This article is just what you've been looking for.
While no one in their right mind would build a marketplace software to compete with Uber or Airbnb, the market for new service-focused marketplace apps is still ripe.
How do you capitalize on the enthusiasm and create marketplace app with the help of web application development companies for a large audience? In our blog post, you'll find the solutions.
Before you create marketplace app:
1. Think of a potential marketplace idea
Is there a problem you want to solve by creating a marketplace?
Take, for example, Airbnb.
The secret to their idea's success was simple. They identified the pain areas of both service providers and customers and then created the greatest possible solution for both.
2. Define the appropriate marketplace type
Before you begin developing a marketplace app with a software development company, you need to decide what type of marketplace you want your app to be. Differentiating various marketplace categories is based on a number of different categories.
3. Conduct research analysis
Conducting research when you have an idea to develop an online marketplace of a specific sort takes effort, but it pays off and allows you to avoid some typical pitfalls. So, before moving on to the planning step, here is a list of questions you should be able to honestly answer.
- How often would you use this product?
- What is the response from a group of potential customers that were interviewed?
- How well do they comprehend your product's purpose?
- What is the overall addressable market size?
- How reliant are you on outside resources?
So before you start developing a marketplace, know your target audience and what is the buyer's persona, know if there is a market available for your marketplace idea, and research who all are your competitors or niche leaders.
4. Define your monetization model
Before looking for an answer to the question, "How can I construct a marketplace?" "How will I make money with my product?" is a question that needs to be answered.
You may monetize your online marketplace in a variety of ways:
Subscription Users must pay a monthly or annual charge to use the marketplace.
Fee for listing Every listing that the vendor adds to the marketplace must be paid for.
Freemium The majority of features on the marketplace are free, while premium services cost money.
Advertising The more users the marketplace has, the more money it can make through ads.
Commission based services
Where you allow customers to take your or other vendor services available on your platform on a commission basis.
5. Get the project documentation ready
Creating detailed project documentation, though it may appear to be a tedious activity, will save you a lot of time and money during the marketplace website construction process.
Whether you hire in-house developers or a dedicated team, the documentation will provide them with a clear roadmap.
Are you planning to build an online marketplace? Get in touch with our experts now!
Create Marketplace App from Scratch
Marketplaces are difficult to navigate. If you're starting from scratch, creating a marketplace app is a huge undertaking.
1. Select your marketplace technology stack
Select a framework: Using a web development framework is a smart idea. Authentication and web security, HTTP request/response handling, HTTP request validation, routing and templating, background job processing, Error handling, database connection management, and data migrations, and logging are just a few of the boilerplate features that the frameworks take care of for you.
Choose the main database: Most frameworks come with strong SQL database support out of the box. Choose from PostgreSQL or MySQL, for example.
Select a search engine: For your marketplace, you'll undoubtedly require an advanced search, so using a search engine makes sense.
Choose a hosting provider: Heroku, Amazon Web Services, Microsoft Azure, or Google Cloud are all options.
2. Define marketplace essential components
When creating an on-demand marketplace software, keep in mind that you'll need to accommodate both vendors and buyers. As a result, before you design a marketplace app, you must decide on the important features that your product will have for both user groups.
Buyers must trust your solution in order to spend money on it, therefore providing customer support, security assurance, and useful features to attract more consumers.
Have various components like:
- easy registration process
- build a user account management with sign-up, login, and password reset capabilities
- search engine with a variety of filters,
- shopping cart;
- listing management and review system;
- simple order monitoring system;
- multi-lingual and multi-currency support;
- integrated payment systems and many more.
3. Concentrate on the user interface and user experience (UI/UX)
It's time to start building the marketplace app in the following step. The initial step in this process is to design your app's UI/UX depending on the target audience, goals, and features you've identified.
In most circumstances, it is preferable to develop a minimum viable product (MVP) for your application.
4. Create a marketplace prototype and put the concept to the test.
To begin, you must get the notion out of your head and visualize it. MVP development is a useful technique for app development in general. Making a minimal viable product is advantageous in a variety of ways when it comes to developing a marketplace application.
It not only helps you to test the water and under the market, but also to minimize the risk, increase the investments and gain feedback to make the user experience better.
Know how we helped a business with Expert Hiring Marketplace Bridging Merchants and Developers.
5. Expand your Reach
Expand the number of people who use your online marketplace. Each small business's dream scenario is to have thousands of users, both suppliers, and customers, within hours of deploying a marketplace app. Unfortunately, such a wonderful coincidence cannot be relied upon.
That is why, long before the online marketplace is developed, you should start expanding your user base.
Thinking, what are the best places to look for potential buyers?
Some ideas are, to examine your competitors and adjacent services, and use the immense power of social media, use blogging services and search engines to your advantage.
6. Have effective support and maintenance
When you release your software on the market, the development process doesn't end there. The long process of maintaining, supporting, and improving your application begins next.
It includes the testing phase, in which you examine what your clients like and dislike about your product, as well as which features are no longer relevant and which you might add.
Customer support, bug hunting and bug fixing, new feature additions, and quality-of-life enhancements are all tasks that must be completed after the marketplace application is released.
Team Required to Launch Your Own Marketplace
To help you create your dream marketplace into reality, you will need a team for development. Here is a list of them:
- A project manager who knows exactly how to construct an online marketplace and supervises the processes and team members;
- UI/UX designer who knows how to identify user’s issues and solve them and create pleasing, interactive design of the marketplace app;
- Web developers;
- QA engineers make up the project team that helps you build a marketplace.
A few more members can be added if you are building a complex marketplace, it totally depends on the scope and features of your online marketplace development.
Develop a marketplace app faster with Terasol Technologies
Starting with the sharing economy is a good idea. Furthermore, any idea has the potential to propel you to the top of the industry.
Are you looking for some motivation?
Wanted to know our app development experience in the marketplace? Our experience in marketplace mobile app development is primarily limited to healthcare, fintech, and on-demand projects.
Here is one of the most recent marketplace initiatives in the Fintech niche that we've performed.
Want to make your dream marketplace a reality? Let’s connect over a cup of virtual coffee and discuss your business needs with our experts.