An Informative Guide to Build a Marketplace Like Noon

Noon is an eCommerce marketplace that was founded in the United Arab Emirates in 2017 by Mohamed Alabbar. The marketplace is headquartered in Riyadh, Saudi Arabia, and operates primarily in the Middle East, with a focus on the UAE, Saudi Arabia, and Egypt. It has experienced rapid growth since its launch and has also raised significant funding from investors to support its expansion.

Tracing the Expansion of Noon – A Successful eCommerce Marketplace in UAE

At the outset, Noon encountered several unique challenges such as building trust among consumers. If that was enough, the postal system of Saudi Arabia was also unreliable as a major chunk of consumers did not have home addresses and collected their mail from the post office. To overcome these fulfillment challenges, Noon kept its delivery and fulfillment services in-house.

Noon seeks to own 15% of the eCommerce market by 2026, approximately $70 billion worth. As of 2021, Noon had over 20 million products listed on its platform, and it has become one of the top eCommerce companies in the Middle East.

In addition, as Noon is a venture of Emaar Group, one of the largest real estate developers in the region, it enabled Noon to open physical stores that offer its customers a chance to experience the products before buying them online. The perks of launching a marketplace like Noon are unparalleled and almost every aspiring business owner dreams about setting foot in this flourishing sector.

If you are also one of them, then we have a detailed guide to let you acquire knowledge about building a similar marketplace like Noon. By the end of this guide, you will have a good understanding of what it takes to launch a successful marketplace and be well on your way to creating your own eCommerce platform.

Benefits of Building a Marketplace Like Noon

• Large market opportunity: eCommerce is a rapidly growing market in the Middle East, and a marketplace like Noon can tap into this opportunity by offering a wide range of products to customers.
• Cost-effective: Building a marketplace allows entrepreneurs to leverage the power of network effects, where the value of the platform increases as more buyers and sellers join. This can help to keep costs down and increase revenue potential.
• High scalability: An online marketplace like Noon can scale quickly and efficiently as the number of buyers and sellers on the platform increases, which in turn can lead to increased revenue.
• Cross-selling opportunities: A marketplace can also offer cross-selling opportunities. For example, if a customer is buying a new phone, the platform can recommend a case or screen protector to go with it, which can lead to increased sales.
• Access to a large customer base: A marketplace like Noon can quickly attract a large number of buyers and sellers because of its online presence, providing entrepreneurs with access to a large customer base.
• Leverage on data: Building a marketplace generates a huge amount of data (browsing history, purchasing behavior), which can be leveraged to improve the customer experience, optimize pricing, and more.

It’s worth noting that building a marketplace is not an easy task and requires a lot of effort and resources, but if done well, it can be a very rewarding and profitable venture.

How Does Noon Work?

The platform allows sellers to list their products for sale, and buyers to browse and purchase those products.

• Sellers: Noon allows sellers to list a wide range of products on the platform, from electronics and fashion to home goods and more. Sellers must register with the platform, and once their account is approved, they can list their products for sale.
• Buyers: Buyers can browse and purchase products on Noon through the website or mobile app. They can search for products by category, brand, price, and more. Once a buyer has found a product they want to purchase, they can add it to their cart and proceed to checkout.
• Payment and delivery: Noon offers several payment options, including credit card, cash on delivery, and online banking. Once the payment has been processed, Noon will arrange for the product to be delivered to the buyer.
• Customer service: Noon provides customer service to both buyers and sellers, including assistance with returns, exchanges, and refunds.
• Physical Stores: The physical stores of Noon offer their customers the chance to experience the products before buying them online.

Overall, Noon works as a platform that allows customers to browse, purchase and receive products, and also provides customer service support for both buyers and sellers.

Revenue Generation Streams of Noon

Overall, Noon generates revenue through a combination of commissions on sales, advertising, delivery fees, subscription service, and physical store sales.

• Commission: Noon charges a commission on every sale made on the platform, which is typically a percentage of the total sale price. The commission varies depending on the product category, and sellers set their own prices.
• Advertising: Noon also generates revenue through advertising. Companies can advertise their products on the platform, allowing them to reach a larger audience.
• Delivery fee: Noon also charges a delivery fee for each order placed on the platform, which is typically a flat fee.
• Subscription service: Noon also generates revenue through a subscription service called “Noon Prime”, which is a membership program that offers free and fast delivery, exclusive deals, and more to customers who pay a monthly or annual fee.

Essential Features Required to Build a Marketplace Like Noon

Building a marketplace like Noon requires a number of essential features to be implemented in order to provide a seamless and efficient experience for both buyers and sellers. Some of the essential features required to build a marketplace like Noon include:

• User registration and authentication: This feature allows buyers and sellers to register and create an account on the platform, and also secure the registration process.
• Product listing: Sellers can list a wide range of products on the platform, from electronics and fashion to home goods and more. Sellers must register with the platform, and once their account is approved, they can list their products for sale.
• Product management: This feature allows sellers to manage their inventory, including adding, editing, and deleting products.
• Search and filtering: Buyers can search for products by category, brand, price, and more. This makes it easy for buyers to find the products they are looking for.
• Shopping cart and checkout: Buyers can add products to their cart and proceed to checkout. Noon offers several payment options, including credit cards, cash on delivery, and online banking.
• Customer service: Noon provides customer service to both buyers and sellers, including assistance with returns, exchanges, and refunds.
• Delivery and tracking: Noon arranges for the product to be delivered to the buyer and provides tracking information so that the buyer can track their order.
• Mobile App: Noon also has a mobile app that allows customers to access the marketplace on the go and make purchases.
• Order management: This feature allows customers to track the status of their orders, and also to manage their delivery address, and track and cancel orders.
• Analytics and reporting: This feature allows business owners to track and analyze data such as sales, customer behavior, and performance of products.
• Security: This feature is crucial to ensure that the platform is secure and protects the personal and financial data of customers and sellers.

How Can Yo!Kart Help to Build a Marketplace Like Noon?

Yo!Kart is a pre-built, customizable eCommerce marketplace software that can be used to create a website similar to Noon. It offers features such as multi-vendor support, product management, order management, and payment gateway integration. Yo!Kart also provides a variety of templates that can be used to give the marketplace a unique look and feel.

Additionally, Yo!Kart has built-in SEO-friendly tools which help to increase the visibility of your marketplace. To build a marketplace like Noon using Yo!Kart, you would need to purchase a Yo!Kart license, set up hosting for your marketplace, customize the platform to suit your specific needs, and then add your vendors and products to the marketplace.

Once your marketplace is built, you will need to launch and promote it. This will typically involve creating a marketing plan, as well as setting up social media and email marketing campaigns. You will also need to optimize your site for search engines, as well as create and publish content that will attract customers and vendors to your platform.

Signing Off

In conclusion, building a marketplace like Noon is a complex and challenging task, but it can also be a rewarding one. With the right strategy and tools, you can create a platform that attracts customers, vendors, and partners, which helps you to grow your business. By following the steps outlined above, we hope you are ready to establish your eCommerce marketplace like Noon.