How to Make a Marketplace Website from Scratch in 2025

Planning to launch a marketplace website but don’t know where to start?

Don’t be puzzled!

This insightful blog will surely help you solve the puzzle leading the way to launch a feature-rich marketplace website starting from scratch.

In the eCommerce landscape you are not alone who is seeking an eCommerce website to serve customers online and generate revenue through multiple revenue streams. A number of eCommerce websites are launching every second with the hope of achieving success in this growing eCommerce space. Especially, the current stats of eCommerce have driven the attention of entrepreneurs toward building marketplace websites. 

According to the latest report by Statista in 2025, global eCommerce sales in 2024 amounted to $7+ trillion and is expected to reach $10 trillion by 2028. This eCommerce boom is indicating that there is huge potential in the market and launching an online marketplace website can be a wise decision.

Let’s begin with how to make a marketplace website from scratch in 2025. This informative blog will exclusively help you launch your platform and pinpoint the aspects to introduce a successful eCommerce platform into this growing eCommerce landscape. 

What is a marketplace website?

A marketplace website is a virtual platform hosted or located on a server that connects buyers and sellers online. It allows businesses to access a global customer base by offering products and services worldwide. On the other hand, the buyer can access millions of products and services online. On the online marketplace website, a buyer can search and browse products and make an online purchase by paying online. However, the mode of payment is the choice of the seller which can be both online and offline (cash on delivery). 

These marketplace websites are built to initiate a variety of online transactions including selling products, services and more.

An extensive range of features and functionalities of the marketplace website lets its different users access and operate the platform effortlessly. These eCommerce platforms work as intermediaries where sellers list their products and services on these marketplaces and on the other hand, buyers avail them according to their requirements by placing online orders. 

Talking about the extensiveness of marketplace websites, you can take the example of Amazon. A platform with millions of listed products from diverse industries and categories that tackle myriad customer needs. 

Different Types of Marketplace Websites  

Each business has a different business model, target audience, marketing strategies and so on. Here are the different types of marketplace websites based on their target audience, offerings, characteristics, business models and more: 

• Business-to-consumer (B2C): These marketplace websites directly offer products or services to the customers. 

Example: Amazon, Walmart, eBay

• Business-to-business (B2B): In the B2B marketplace website businesses trade with the other businesses. 

Example: Alibaba, eWorldTrade, Global Sources

• Consumer-to-consumer (C2C): On this type of online platform operates vice-versa_customers are buyers and sellers themselves. They sell and buy products from each other. 

Example: Etsy, Poshmark, eBay

• Horizontal Marketplace Website: This type of marketplace website offers an extensive range of products from diverse industries to its customers. 

Example: Amazon, eBay, Flipkart

• Vertical Marketplace Website: Exactly opposite from vertical marketplaces, this type of eCommerce platform offers niche-specific or targeted products to its targeted customers. 

Example: Etsy, Airbnb, ASOS

• Service-based marketplace websites: These types of marketplaces offer services by connecting service providers with customers. 

Examples: Upwork, Airbnb, Fiverr

• Product-based marketplace websites: These eCommerce platforms allow buyers to buy products from different categories.  

Example: Amazon, eBay, Etsy

• Global marketplace websites: A global marketplace is an online platform that enables buyers and sellers to trade in goods and services across international borders.

Example: Amazon, eBay, Alibaba

Key Benefits of Building a Marketplace Website

Launching a marketplace website has a number of advantages. It can let you make more profit and help you reach out to a wider audience compared to a physical store. Let’s explore a few more benefits of launching your own marketplace website below: 

• No Inventory Management Required

Many entrepreneurs launch a marketplace because it doesn’t require to maintain an inventory. There is no need to rent space, maintain inventory, employ a workforce or any more. A marketplace website eliminates the expenditure associated with managing an inventory. 

A marketplace website serves as an intermediary between sellers and buyers. On the one side, where sellers list their products or services. On the other side, the buyer made the purchase and the seller took the responsibility to complete delivery from packing to shipment.

However, the marketplace plays a significant role. It connects all the parties including seller, buyer and shipping partner and earns through various revenue streams. 

• Opportunity to Reach a Broader Customer Base

A marketplace website doesn’t restrict the marketplace owner like a physical storefront where the business has limited customer access. In addition, not only compared to a physical storefront but a marketplace website has a wider customer base than a single-vendor online store. 

Unlike an online storefront where limited products or services are offered, the marketplace has wide offerings. It offers a wide range of products from diverse industries that tackle diverse customer needs contributing to broader customer reach. Therefore, by building a marketplace website you can get the opportunity to target a broader audience.

• Option to Generate Revenue through Multiple Revenue Streams

Again, unlike a physical or a single-vendor online store, a multi-vendor marketplace website is not just limited to one or two revenue streams. However, its diverse offerings and large customer base enable the marketplace plan and generate revenue through multiple revenue channels. 

A marketplace can generate revenue through: 

Commission on sale: In this revenue model, a marketplace charges a certain percentage of each sale. 

Listing fee model: Sellers pay a fee to list their products on the marketplace. 

Featured listing fee: Sellers can pay additional to have their listings prominently displayed on the platform. 

Subscription model: To access premium features, services or content, users pay a recurring fee monthly or yearly. 

Advertising revenue model: The marketplace also generates revenue by allowing third-party advertisers to promote their products or services to the customers. 

Freemium model: It seems similar to subscription but is different. There are a few additional features, tools, or functionalities that are only accessible to paid users.

• Reduced Operational Costs Compared to Other Sales Channels

The cost of managing a marketplace is lower than operating other sales channels. The marketplace owner doesn’t need to hold inventory, handle the logistics or product shipment, or manage individual customer relationships, and more. Therefore, if you want to start a business with a low budget, launching a marketplace website can be one of the cost-effective approaches.

• Easily Scalable with your growing business

Unlike physical stores, a marketplace doesn’t require a physical space. Even though there is no need to shift inventory from one place to another while scaling. Marketplace websites are stored on a server and are easily scalable. 

Of course! The marketplace software and tech stack matter while scaling the platform. The marketplace website can be grown only with your growing business if you have chosen the right platform and development method to build your marketplace. Otherwise, it may cause lots of trouble and barriers. 

Many entrepreneurs and business owners make mistakes in the selection of marketplace software and face challenges while scaling the platform. 

Major Challenges and Solutions of a Marketplace Website

Everything that comes with benefits has a few challenges as well. The same statement applies to the marketplace website. Building a marketplace is an exciting venture. At the same time, a few challenges are also there that one should not miss while launching a marketplace website.  

• The “Chicken and Egg” Problem of a Marketplace 

This is one of the biggest challenges for any marketplace in the early stages. Chicken and Egg problem means whom to attract first, Buyer or Seller? 

Let’s have some clarity on the concept. 

If there is no seller then how can a buyer visit a platform and for what? On the other hand, if there is no buyer then it becomes tricky to convince sellers to list products on the platform. 

Solution: To overcome this challenge you can refer, customers don’t wait for the products, they have multiple options. On the other hand, being a business owner you always wait for the customers. Therefore, approach sellers first. Because they can wait for the customer. If you have launched a reliable platform and can convince sellers of your unique capabilities, they list products on the platform and wait for the customers. 

• Difficulty in Building Trust in the Early Stages

Trust building is always a concern for business in the early stages. It’s like convincing people to live with strangers. Customers don’t feel safe sharing data, making payments and placing orders if the marketplace is not popular or familiar. They often prefer making transactions on trusted eCommerce platforms as a significant percentage of customers place orders on platforms they are familiar with. Therefore, earning trust becomes a challenge for marketplace websites in the early stages. 

Solution: Suppose you are a customer. What do you see before purchasing on a marketplace website? The answer will be authentic sellers, product quality, trusted payment gateways, reviews and ratings, social handles, website ranking, customer support, transparency and more such aspects. 

Therefore, if you want to earn the trust and loyalty of customers on your marketplace website in the early stages, focus on offerings, transparency, clear communication, verification processes, reviews and ratings, social proof, and safety features, and prioritize a user-friendly experience. These considerations will help your customers feel secure on the marketplace website while making transactions. 

• Marketplace Competition: Your Forever Partner in Success 

Competition is another significant challenge in the crowded eCommerce landscape. In the early stages, gaining brand recognition can be tough, but as your marketplace grows, the competition intensifies. You face major players like Amazon, eBay, Walmart, Flipkart and others.  

Solution: What sets you apart from the competition is your Unique Value Proposition, which not only helps you build your own brand’s identity but also attracts buyers and sellers to the platform. Because admiring the same what others are doing can be a cobblestone in paving the way toward marketplace success. Therefore, always try to offer what others are missing. 

In addition, conduct market research, analyze your competitors, understand their strengths and weaknesses, plan your strategies, and more. In addition, understanding changing customer’s needs, improving user’s marketplace experience and innovative ideas are a few noteworthy steps startups can take to stand ahead of the competition. 

• Order Fulfillment: Ensuring Quick and Timely Delivery

Modern customers expect quick delivery. They don’t want to wait longer for order fulfillment. Therefore, order fulfillment is another challenge for the marketplaces today. Delays in delivering orders may cause customers frustration. It may also increase the chance of cancellation and return. 

Solution: To avoid delays, cancellations and returns, the marketplace should focus on the supply chain, quick order processing, and more. Encourage sellers to pack and ship products with a reliable delivery partner who can help ensure the fastest delivery. Automation in delivery can help marketplaces ensure same-day delivery. In addition, safe packaging and reduced shipping costs also enhance the customer’s shopping experience. 

Steps to Launch the Marketplace Website from Scratch in 2025

Building a marketplace website from scratch is a challenging process. It requires several considerations from exploring ideas to launching a full-fledged marketplace website. The below steps are crucial for an entrepreneur or business owner who is stepping into the world of eCommerce by launching a marketplace. 

1. Market Research to Identify Marketplace Needs

Launching an eCommerce marketplace website does mean establishing a successful online platform where customers will shop for sure. Most of the marketplace websites are shutting down and ceasing operations due to a lack of planning, strategies, selection of marketplace platforms and several more reasons. Therefore, before you launch a marketplace website, you need to do a thorough market research and analysis. 

Thorough market research is an important aspect of launching a marketplace website. This process involves analyzing competitors, identifying the actual problem, customer’s pain point, gap in offerings, opportunities, and more. During this process, you will get insights into the business model and growth potential in the future.  

2. Define Your Idea to Launch a Marketplace Website

Planning to launch a marketplace website itself is an idea. But when you go through in-depth market research, you get clarity about the direction where you have to put efforts. Therefore, once you are finalized with the market research, the second step you have to think of is your idea. 

In this consideration, you will analyze the market, target audience, customer’s needs, your offering (product or services you will offer), operations, and unique selling proposition to define your idea. This analysis will not just help you define the idea but will also help you plan further strategies accordingly. 

3. Build a Business Model and Decide Revenue Streams

Building a business model means planning how your marketplace will operate. You will outline the products or services you have to offer, the target market, target audience, marketing strategies, operational costs and more. Planning your business model will also help you determine how the marketplace will match supply and demand. Once you have done with your marketplace business model, the next step is to decide on revenue streams. 

Revenue generation is the end goal of any business. In the same way, it also complies with your marketplace website on how you will generate revenue. One of the significant advantages of building a marketplace website is that you can generate revenue from multiple sources. It allows marketplace owners to decide on multiple revenue streams. A marketplace website can help you generate revenue from commissions on transactions, subscription fees, product listing fees, freemium services, Advertising, sponsored ads and more. 

Important for You: The revenue streams of marketplace websites vary depending on the marketplace type, offerings and business model. It is a strategic step that requires various considerations alongside the mentioned above such as competitor analysis, customer preferences, value to product or services, and more. Therefore, always choose sustainable revenue streams that align with your marketplace business model. 

4. Define Features and Functionalities to Make Your Platform Operational 

Well-designed features and functionalities are critical on a marketplace website. They ensure smooth marketplace operations, enhanced user experience, improved marketplace engagement and drive more sales. For customers, features help them find products or services and help them complete checkout. For sellers, advanced features are required to manage listings, inventory, sales and more. For Admin, features are crucial to analyze data, control, operate and grow the marketplace website. 

Below are a few important features that one should not miss while launching a marketplace website: 

• Easy to Register Process: This is the first step where users interact with the marketplace for the first time. Therefore, a streamlined registration process matters. An easy registration process is required to make the marketplace user-friendly and straightforward for buyers and sellers. 

• Advanced Search and Filtering: Advanced search and filter options are important to help buyers find products and services easily from the vast catalog. They can easily search products by entering keywords and short or filter them on the various options available. 

• Add to Cart Option: A cart on the marketplace website is a virtual space where buyers can save items they intend to buy or want to browse later. This option allows buyers to browse other products while adding preferences to the cart. In addition, an add-to-cart feature also lets the buyer compare products in the cart and select any from the list to checkout. They can add or delete items anytime from the cart. 

• Payment Gateways: Multiple payment gateways enable multiple payment options for buyers from different regions. One of the significant advantages of multiple payment gateways in the marketplace is that it allows buyers to initiate payment methods or options using a gateway popular in their region or they trust. 

• Order Tracking: Once the order is placed, the order tracking feature becomes essential for the buyer. It provides real-time updates of order and delivery status. One can track the status of the order including when it was placed, where it is, and when it will be delivered and more. 

• Rating and Reviews: As we discussed above reviews and ratings play a substantial role in building trust in the marketplace. A significant percentage of buyers check reviews and ratings of the product or services before checkout. It helps them get actual feedback from the customers on the product or service they are buying. Therefore, this feature is also required in the marketplace website. 

• Customer Support Option: Although customer support is not a feature it is a service but on the marketplace it becomes a feature when it comes to finding the option to interact with customer services for buyers. Therefore, a one-click or easy customer support feature is required to provide an easy option for customers. 

• Push Notifications: A push notification is a feature that allows sellers or the marketplace website to send alerts directly to the buyers. They can send notifications for new products, price drops or discounts, special deals, order updates or other relevant information. This feature works as a marketing or direct communication channel that boosts user engagement.

• Separate Dashboards: Separate dashboards help its users including admin, seller and buyer part and play their roles and responsibilities by making the marketplace fully operational. 

• Reports and Analytics: The reports and analytics feature integrated with the marketplace website is really crucial when it comes to make data-driven decisions. Because it provides sellers and admin with valuable insights into customer behavior, sales trends, product performance, and overall market dynamics. The end goal of the feature is to help the marketplace owners plan strategies according to insights and drive growth.

5. Choose a Development Approach to Build Your Marketplace Website

After defining essential features for your marketplace the next step is to choose the development approach which means a solution or software to launch your marketplace website. There are three popular approaches that one can opt for, developing a marketplace from scratch, Choosing SaaS-based solutions, or launching a marketplace using self-hosted software. 

– Custom Development: An Approach to Build a Marketplace from Scratch

This approach is required to build a marketplace website from the ground up. In this approach, you get complete control over the platform, from deciding features to functionality, UX/UI to tech stack. However, this approach can be time-consuming and costlier. Because it requires a dedicated team of developers and resources including product research and development. For entrepreneurs with some initial investment, building a marketplace is not the right choice. Therefore, they avoid developing a platform from scratch and go for other available solutions. 

Cost of Developing a Marketplace Website from Scratch

The cost of developing a marketplace from scratch can cost you anywhere from $30000 to $200000 or even more depending on your marketplace requirements. 

– Readymade Software to Launch Your Marketplace Website 

Today, self-hosted readymade software is quite popular in the eCommerce industry. Entrepreneurs are choosing this solution to launch their marketplace website. This type of software comes with out-of-the-box features and functionalities allowing you to launch a feature-rich platform. Also, they provide an option to add features tailored to your specific business needs. The flexibility to customize platform features is not readily available in SaaS solutions, so readymade software with more customization options might be better suited. 

Cost of Launching a Marketplace Website with Self-hosted Software

Launching your marketplace website with readymade software is always more cost-saving than developing a platform from scratch. In addition, unlike custom development, it does not take much time to launch. But this type of software comes with all the essential features and functionalities and allows entrepreneurs and to introduce marketplace in the less time. 

In addition, readymade software like Yo!Kart provides an opportunity to launch your marketplace website starting at $499 which is really a cost-saving solution. Also, this eCommerce software does not charge monthly or yearly recurring charges, making it a cost-saving selection in the long run.

6. Build a Marketplace MVP to Test Your Idea

Launching a full-fledged marketplace at the initial stage can be risky. You have no idea whether your marketplace will thrive or not. One cannot deny that people can accept or reject the idea. Therefore, marketplace launch should be planned in such a way that there should always be a scope to come back. Building an MVP is always the right decision.  

An MVP is a cost-saving approach to validate your idea, understand user behavior, identify challenges, analyze requirements of features and functionalities and so on. It is the first version of your product with minimum essential features to attract early adopters and validate your idea. An MVP requires less resources, and money compared to a fully operational eCommerce platform. One of the significant advantages of launching an MVP is it takes less time and gives you the opportunity to hit the market first. 

By launching an MVP, you get a chance to implement what you are lacking to dominate the market. In addition, It is less risky than launching a fully operational marketplace website. Although, an MVP is also an operational solution but only with essential features and functionalities. 

7. Launch a Full-fledged Marketplace Website

After you launch an MVP you get some important feedback from the early adopters. Now you can have some idea on potential challenges, essential features that need to be developed, and more. These feedbacks are crucial to improve user experience on your marketplace website. 

Once you have worked on all the feedback, improvement areas, offerings and all. Now you can make data-driven decisions to launch your full-fledged marketplace website. However, one should never stop working on the feedback. Always monitor the user experience on your marketplace, conduct thorough research and competitor analysis and keep optimizing features and functionalities, according to the feedback shared. 

Alongside, several more considerations are also there that one should not ignore such as motivating sellers and buyers through different programs and incentives, running campaigns, planning effective marketing strategies and so on to grow your marketplace website. 

Choosing the Right Solution to Build an Online Multi-vendor Marketplace Website

If you are an entrepreneur or business owner who is seeking a solution to launch a marketplace website without developing from scratch and also looking for more flexibility to customize than a SaaS-based solution, Yo!Kart can be an ideal choice. It is a self-hosted marketplace solution that also proves source code ownership making it an excellent choice when it comes to gain complete control over your eCommerce platform. With Yo!Kart, you get a complete marketplace ecosystem that not only provides you with a solution to launch a marketplace website but also helps build a global platform. 

What are the Advantages of Choosing Yo!Kart 

• Yo!Kart is a self-hosted software that can be hosted on your server. 
• It provides source code ownership allowing you to get access to the source code. 
• Being a fully customizable solution, Yo!Kart gives you the option to customize the marketplace according to your needs. 
• Yo!Kart is a one-time paid solution that offers lifetime product ownership with no recurring charges. 
• You can grow your marketplace website with growing business needs with Yo!Kart. 
• It is a white-label marketplace solution that allows you to launch your marketplace under your brand. 
• With Yo!Kart, you get multilingual and multi-currency support that lets your marketplace break all the barriers. 

Popular Marketplace Websites Empowered By Yo!Kart with Their Case Studies

• UNI Diamonds
• B2B Liquor Selling Platform
• Voyij
• Bozinga
• Regake
• OGI
• A1vendor
• Due Dash
• Myntist
• CX Marketplace

Explore our Global Clientele 

Final Thought

In this blog, we have explored all the considerations including how to launch a marketplace website from scratch. Also, we have discussed the approaches that one can choose to build a marketplace website. 

However, marketplace websites are high in demand today. The potential of connecting businesses worldwide makes it the first choice for entrepreneurs. Especially, the technological advancements, advanced features and marketing tools are helping businesses to connect with customers by ensuring seamless transactions. 

Undoubtedly, launching and growing a marketplace platform in the early stages is a bit challenging but at the same time it is an exciting adventure that enables businesses to achieve their goals by stepping into the global market. If you are also interested in launching a marketplace website, Yo!kart can help you establish a global eCommerce platform. 

FAQs

Q 1. What are the essential steps to launch a marketplace website in 2025?

Ans. Launching a marketplace website whether in 2025 or anytime, requires a few important considerations and steps. The first step is the evaluation of your marketplace idea which involves thorough market research. In addition, by understanding market trends, defining the target audience, identifying unique value propositions, building an intuitive marketplace MVP, Testing ideas and platforms, working on feedback, introducing a full-fledged eCommerce platform and in the last step you can market and grow your business. Along with the above, several more aspects are also there to ensure marketplace success such as marketplace features, functionalities, offerings, pricing strategies, customer services and more. 

Q 2. How much does it cost to build a marketplace website from scratch in 2025?

Ans. Building a marketplace website from scratch can cost you anywhere between $30000 to $200000 or more depending on your marketplace requirements. However, by choosing Yo!Kart as your marketplace platform, you can save so much money. Because this readymade eCommerce software allows you to launch your marketplace website starting at $499 with no additional costs. 

Q 3. Can a marketplace launched with Yo!Kart generate revenue from multiple revenue streams?

Ans. Yes, with Yo!Kart you can generate revenue through multiple revenue streams such as commission on each sale, commission on each transaction, subscription fees, listing fees, featured listing, advertising and sponsored ads. 

Q 4. Which is the best eCommerce software to launch a marketplace website?

Ans. Deciding the eCommerce software that best suits your marketplace idea depends on various factors. These factors may include your specific marketplace requirements, goals, target audience, product or service type, features and functionalities needed and more. 
However, Yo!Kart can be one of the best eCommerce software and the most preferred choices for you that can help you launch your marketplace website effortlessly. Also, this platform is highly flexible with customization and scalability. Therefore, you can easily tailor the solution to align it with your unique marketplace requirements.