{"id":3025,"date":"2020-06-05T07:45:55","date_gmt":"2020-06-05T13:15:55","guid":{"rendered":"https:\/\/www.emizentech.com\/blog\/?p=3025"},"modified":"2022-01-21T11:42:35","modified_gmt":"2022-01-21T11:42:35","slug":"develop-buy-sell-marketplace-app","status":"publish","type":"post","link":"https:\/\/multisitelocal.ezxdemo.com\/blog\/develop-buy-sell-marketplace-app.html","title":{"rendered":"How To Build A Buy and Sell Marketplace App Like Etsy, LetGo"},"content":{"rendered":"

The web has been completely changed in the last decade. With the internet revolution, the businesses and users both are moving online to make sales and purchases. Due to this, the online marketplace has become a trending thing in ecommerce. The people have become more familiar with the marketplace due to the multi-vendor marketplace giants such as Etsy, Wish, LetGo, eBay, and others. These marketplaces are connecting the sellers and customers. Now a business owner can acquire customers from any corner of the world. It builds its brand reputation and increases. On the other side of the coin, the consumers are getting products delivered right at their doorstep at very reasonable rates. These multi-vendors marketplaces are a running concept that holds a good business outcome yet.<\/p>\n

<\/span>Retail eCommerce Sales Worldwide from 2014 to 2023<\/span><\/h2>\n

\"GlobalYou would be surprised to know that more than 55% of the retailers on a marketplace make more than 20% profit. In the U.S. 90% of online retailers sell through these online marketplaces. In fact, to enlist business in a marketplace, you don\u2019t require a very wide range of SKUs. In fact, 36.8% of sellers carry between 1,000 and 10,000 SKUs, but only 12.6% make the majority of their revenue on that range of SKUs. Retail ecommerce was valued at 2.3 trillion US dollars and is expected to reach a valuation of 4.9 trillion US dollars.<\/p>\n

<\/span>Types of Ecommerce Marketplaces<\/span><\/h2>\n

Ecommerce marketplaces can be categorized on the basis of the scale of business or its operations. On the basis of the business scale, the ecommerce marketplace has been generally categorized into three main categories:<\/p>\n

<\/span>1. Business to Business (B2B)<\/span><\/h3>\n

B2B is an ecommerce marketplace in which one business sells goods or services to other businesses. The businesses which sell goods in this model are large scale supportive enterprises that offer the equipment which other businesses require to operate and grow. Mostly, these include businesses like industrial suppliers or payroll processors.<\/p>\n

<\/span>2. Business to Customers (B2C)<\/span><\/h3>\n

B2C ecommerce marketplace is a business model in which the seller sells products & services directly to the consumers which are the end-users in this model. B2C became intensely popular in the last decades where the end-users started buying from the ecommerce stores of the retailers. B2C model has a global reach for the end-users, so even small businesses operating from homes can sell to customers to another side of the world.<\/p>\n

Learn More: eCommerce Marketplace Website with B2C and B2B model<\/a> and Key Differences Between B2B and B2C eCommerce Marketplace<\/a><\/h4>\n

<\/span>3. Customer to Customer (C2C)<\/span><\/h3>\n

These are not so common ecommerce marketplaces, but yet important. In these marketplaces, the customer sells products directly to the other customers. eBay is a perfect epitome for this, where you can sell your products directly to the other person. Other such platforms are OLX, traditional second-hand bookselling platforms, etc. The revenue of these marketplaces depends upon their terms & policies.<\/p>\n

<\/span>On the basis of Operations, the Types of Marketplaces are<\/span><\/h2>\n

<\/span>1. On-demand<\/span><\/h3>\n

In the On-demand marketplaces, the users are provided services that are in high demand among the users, such as food delivery services, telehealthcare services, etc.<\/p>\n

<\/span>2. Managed<\/span><\/h3>\n

A managed marketplace constitutes an intermediate entity that intervenes for the proper functioning of the marketplace. That intermediate entity is responsible for all the business processes such as payment, stocks, inventory, analysis, and maintenance.<\/p>\n

<\/span>3. Community-driven<\/span><\/h3>\n

Community-driven marketplaces gather independent retailers and brands on its platform.<\/p>\n

<\/span>4. Saas<\/span><\/h3>\n

A SaaS marketplace is a type of application marketplace. At a SaaS marketplace, customers can go to an online storefront to find, purchase, and manage cloud-based SaaS applications.<\/p>\n

<\/span>5. Decentralized<\/span><\/h3>\n

A decentralized market contains digital technology, which allows buyers and sellers of securities to deal directly with each other instead of meeting in a traditional exchange. A common example of a decentralized market is real estate, where buyers deal directly with sellers.<\/p>\n

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<\/span>Market Leaders<\/span><\/h2>\n

You must have heard of the global market leaders in ecommerce marketplaces such as Amazon, Walmart, and others. However, in this article, you will come across some other big names too such as Etsy, Offer Up, Letgo, Wish, eBay, Aliexpress.<\/p>\n

<\/span>Etsy<\/a><\/span><\/h3>\n

\"Etsy\"Etsy is amongst the best ecommerce marketplaces for artists who want to sell their handmade unique items across the world. The business model is almost similar to Amazon, and eBay, but what makes difference is that Etsy provides an amazing value to both buyers and sellers. As a seller on Etsy, you can sell your handmade crafts and earn a living and if you are a buyer you can own one of kind products. This fact has led to the massive growth of Etsy. It started as a simple website in the year 2005 and is now listed as a public company with over $360 Million of total funding.<\/p>\n

<\/span>Offerup<\/a><\/span><\/h3>\n

\"OfferUp\"Offerup is amongst the first peer-to-peer (P2P) marketplace that lets customers use Apple Pay, Google Pay, and Samsung Pay as part of its digital infrastructure. It is their advance payment strategy that makes different from other ecommerce marketplaces. The buying and selling is quite easier on the app ideas<\/a> in comparison to other marketplaces. Offerup is available for both iOS & Android, as well as for the web. It enables the purchase and sale of used goods. The marketplace, optimized for smartphones, displays big pictures of products for purchase through an infinite scroll design that is visually attractive.<\/p>\n

<\/span>Letgo<\/a><\/span><\/h3>\n

\"LetGo\"Letgo is another secondhand marketplace giant with a valuation of more than a billion dollars. You can sell and buy things locally in this marketplace. From its launch, the company did not charge for its services, earning any revenue, as part of its strategy to grow quickly. As of June 2018, the listing service remained free, but the app added a paid beta feature allowing users to place their sales items above organic search results.<\/p>\n

In March 2020, Offerup and Letgo announced that they will combine their US businesses. The combination will create a leading mobile marketplace supporting more than 20 million monthly active users, with complementary product capabilities and a national footprint across the United States.<\/p>\n

Also Read: How To Develop A Mobile App For eCommerce?<\/a><\/h4>\n

<\/span>Wish<\/a><\/span><\/h3>\n

\"Wish\"Wish is an online marketplace that lets you search and purchase items from the 3rd party sellers. It was founded in San Francisco back in 2010 and has gained immense popularity since then, due to its notable features and benefits to both sellers and buyers. It was the most downloaded shopping app in 2018 and is now the third-biggest ecommerce marketplace in the U.S. by sales.<\/p>\n

<\/span>Aliexpress<\/a><\/span><\/h3>\n

\"AliExpress\"Aliexpress was founded in 2010 by the great person, known for his struggle, Jack Ma. It is an online retail service constituting of small businesses in China and elsewhere offering products to international online buyers. It is amongst the best platform for those businesses who are looking for the dropshipping model. You just need to import the product content and images from AliExpress.com directly to your store, and you can also set your own prices and markups. The best part is that after you sell a product, you purchase it from a supplier on AliExpress and then have it shipped directly from their warehouse to your customer.<\/p>\n

<\/span>How does a Marketplace App work?<\/span><\/h2>\n

\"ecommerceAn online marketplace doesn\u2019t have to be responsible for maintaining inventories, stocks, shipping, but can transfer this burden to other entities such as sellers, shipping methods, payment methods, etc. While the sellers get a dedicated space for managing their stock, orders, and payments. The buyers can browse the products electronically, and make an order. This is a general working of a marketplace, however, it can vary as per the genre of the marketplace. For e.g. a marketplace for doctors would work on a service basis, while the traditional marketplace of products such as Flipkart, & Amazon works on products.<\/p>\n

Also Read: How To Develop An eCommerce Website?<\/a><\/h4>\n

<\/span>Business Model of an online marketplace<\/span><\/h2>\n

There can be several strategies for making revenue for an online marketplace. However, the common ones are:<\/p>\n

<\/span>Subscription basis<\/span><\/h3>\n

Subscription is the highest popular business model. It is quite simple to understand, there is a regular fee that can be charged monthly, quarterly, or annually from the supplier to use the platform. This revenue model helps suppliers find new clients or gain access to potential clients or partners.<\/p>\n

<\/span>Commission model<\/span><\/h3>\n

In the commission model, there is a percentage basis commission that you charge from the vendor when he makes a sale. Some marketplaces charge the commission from both buyer and seller such as Upwork (a freelancing platform). Unlike the Subscription-based model, there is no regular fee, and you have to give a commission only when you make sales.<\/p>\n

<\/span>Sign-up fees<\/span><\/h3>\n

As the name indicates, as a seller you have to pay an amount while registering or sign-up. Since the sellers pay you upfront, no complex payment gateways are required.<\/p>\n

<\/span>Product Listing fees<\/span><\/h3>\n

In this model, there are two methods of charging the fees from the vendors. First, you can charge for the registration and the seller can enlist a limited number of products. For uploading more products, you need to pay a substantial amount decided by the marketplace admin.<\/p>\n

<\/span>Mixed models<\/span><\/h3>\n

If you have become a huge marketplace, then you can include multiple revenue models for two major reasons; increasing profit, and restricting the unauthenticated or unreliable sellers. Some of the major online marketplace players like Amazon have combined several models with success.<\/p>\n

<\/span>How to Develop a Marketplace Web App?<\/span><\/h2>\n

Developing an online marketplace app doesn\u2019t only about the coding, first, you should have a proper understanding. Here is the proper flow of creating an online marketplace app:<\/p>\n