How to create an online marketplace like Etsy?

Updated 11 December 2020

If you are planning to build a Multi-vendor e-commerce website for local vendors in your area dealing in handicraft items, then you might be looking for an e-commerce website like Etsy. Here I will discuss how to create an online marketplace like Etsy.

Etsy supports multi-vendor feature so that multiple vendors can come together and sell their products. It was founded in 2005 in  Brooklyn, New York. As of 2018, more than 2.1 million sellers active, and 39.5 million buyers active on Etsy. Most of the seller on Etsy is women.

etsy buyer

seller on etsy


On Etsy, Buyers can directly connect with the seller and buy a customized and personalized item. It is popular because repetitive buyers want the handmade product on Etsy. Here I will discuss how to create a multi-vendor marketplace like Etsy.

Creating an online marketplace like Etsy!!

You need to follow the below process for implementing your e-commerce website like Etsy

Select the Right Platform for your e-commerce website

This is a very initial step while implementing a new e-commerce website. When you are planning to make an e-commerce website then you have to select one from lots of development platforms like Prestashop, Magento, Bagisto etc.

Nowadays Magento is a very popular platform for creating an e-commerce website. It is a more secure platform for e-commerce. For easy customization and developing a basic eCommerce shop, you can make use of platforms like Bagisto and OpenCart.


Recently Launched e-commerce platform Bagisto is an opensource platform build on Laravel.

Laravel is the most popular php framework, which has elegant syntax. The main feature of laravel is to make the development process simple and attractive without sacrificing application functionality.


Few Feature of Laravel

Technical Team

For making a new e-commerce website you should have a good technical team comprising of a Developer, Website Designer, Tester so that they can develop your idea in an effective way.


Technical team


Choose Proper Web Hosting

When you have successfully created the e-commerce website you need to make it visible with web hosting services. You can select one from lots of web hosting services like AWS, Google Cloud etc.



Test Your E-commerce Website

Once your website is ready you have to perform testing on an e-commerce website. This is to check your website for the potential bug before it’s made live in the production environment.



Launch Your E-commerce Website

Once your website is ready and properly tested, you can launch your website.

How to Implement Multi-Vendor Functionality?

Bagisto offers multi-vendor marketplace extension as well as multi-warehouse inventory which is a core feature of the e-commerce platform. You can easily manage your inventory and create a marketplace like Etsy.

bagisto features

Laravel Multi-Vendor Marketplace

By using Laravel Multi-Vendor Marketplace, you can easily set up your multi-vendor eCommerce website. The marketplace allows sellers to check all statements ( total sale, total payout), customize their shop branding, add or delete products, and much more.

How To Install and Set Up the Laravel Marketplace

The admin has total control over the marketplace. The payouts can be made easily to sellers, allow/disallow permission, auto-approval of a seller, products, etc. Few other features of the marketplace are:

Laravel Marketplace Live Demo

If you want to create an e-commerce site like Etsy. Feel free to connect Bagisto Helpdesk or follow Bagisto Tutorials and our official Bagisto Forum.

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