A Beginner's Guide to Launching an Online Marketplace

Article by Carmella Jennings - 26 Apr 2021 - 4 minute read

Online stores are a pure gold mine. For the last few decades, most things such as learning and shopping have moved online. From the comfort of your home, you can order most things you want and get them delivered to your doorstep. 

Entrepreneurs are taking advantage of this move, and they're creating online stores to join this growing marketplace. However, the process of getting e-commerce up and running may not be a walk in the park. But you shouldn't worry because digital marketing agencies like sortlist.co.uk are there to guide you. 

To ensure you get things right, here is a guide to help you build an online marketplace e that'll effectively compete in the market. Read on to get the basics.

Research on the Target Market

It's essential first to analyze your target market. For this, you should understand the users' needs and the solutions they're seeking for in their daily queries. 

There are different niches in every market, and the users may differ in terms of age, profession, and others. At the research stage, you need to ask yourself these questions: What's the structure of the market?  What are the target audiences' expectations and needs? From who do they buy their goods and services and why? Who are the sellers? How can one offer a better experience? If you can answer these questions, you'll understand the customers' needs and provide solutions to their needs. 

Choose the Correct Business Model

The business model you choose will determine whether or not you'll gain revenue from it. With this in mind, you should ensure you choose a suitable model. Design a model that you prefer.

Some of the standard models you can adapt, depending on the requirement are product listing fees, sign-up and subscription fees, processing and selling fees, and third-party ads.

There's also the alternative of combining these models to create the ideal one. It's important to note that these models are not the key to making the first killer revenue, but they may become the wells to sustain your store as time goes by.

Planning the Marketplace Operations

Having an up and running online store isn't enough; it needs to be managed well and carefully with commitment and dedication.

Managing the operation can be hefty as you need to manage the seller and buyers, process the payments, and market the e-commerce. You can ease this by having a well-thought-out plan. 

Have All the Basics and Features

Build the marketplace one brick at a time. It's not essential to start with e-commerce that's fully furnished. You can start with the basics then add the other features as the marketplace grows. 

It's noteworthy that the features and basics of any e-commerce marketplace may vary, depending on the kind of platform you intend to create. For this reason, you should first understand what's required and fully implement it before launching your store.

Select the Payment method

Any marketplace needs to have the preferred payment option(s). These will be payments from the buyers, sellers, and third-party advertisements. 

While the latter may not be difficult, the actual task comes in receiving that of the buyers. This is because the buyers could be from different localities that have other payment methods and currencies. It's better to go for a payment method that best fits the marketplace and the buyers themselves. 

Choose the Right Marketplace Software

Once you have all the above sorted out, the next step is to select the right software. The right software will fully customize the marketplace and optimize it to allow you to reap more benefits from it.

There are three types of software you can choose from:

  • Hosted Marketplace Software which requires no technical knowledge. Kreezalid is one of them.
  • Self-hosted software optimized for marketplace operations and requiring some customization.
  • Multi-vender CMS Extension which has different types like WordPress and OpenCart among others.

Launch the Marketplace

Lastly, once everything else is done correctly, you can go ahead and launch your marketplace. Once launched, it's better to be patient and let the platform grow. Sometimes, it can take a while to generate revenue. However, you can optimize it with SEO to drive traffic to the store. This is the only quick way to generate revenue. 

Takeaway

For your online marketplace to be successful, you need to get all the basics right. You should understand the current market trends, choose a suitable model, and have proper payment methods. What's more, there should be fully functioning software that'll help optimize the store. Of course, it would help if you launched the marketplace to start generating revenue.

Carmella Jennings
About Carmella Jennings

Carmella Jennings is a human resource consultant. She has been involved in recruitment services for many years. She is also an expert in matching employers and clients, according to their needs and preferences. Carmella likes cooking and gardening during her days-off. She has a cat named Chelsea.