The eCommerce industry is really growing fast, and a lot of entrepreneurs are looking into how to start an online marketplace to take advantage of this growth.
This article will help you understand the important steps to create, launch, and expand your own multi vendor eCommerce business.
How to start an Online Marketplace?
Before you begin creating an online marketplace website, there are a few technical things to think about.
But first, let’s understand the core concept of an online marketplace.
What is an Online Marketplace?
An online marketplace is a website that brings together many buyers and sellers on a single platform.
This type of business is growing really fast these days and looks like it will keep getting bigger in the future. This comes under the Horizontal e-marketplace.
Some of the top online marketplaces are Amazon, eBay, Etsy, Bonanza, and Walmart.
Marketplace vs Online store
A marketplace (multi vendor) lets lots of sellers put their products up for sale on the same site.
An online store (single vendor) is run by just one brand that only sells its own items.
We’ve added an image below to clearly show the key differences between a marketplace and an online store.
Now, let’s move on to the steps on how to start an online marketplace.
Create an MVP(Minimum Viable Product)
Creating a Minimum Viable Product (MVP) is the key first step when launching an online marketplace. You’re not merely making a website—you’re starting a business.
Begin with just the essential features that satisfy the initial needs of your customers and get it up and running fast.
After that, enhance your marketplace using feedback from users and what you learn from real life experiences.
This method allows you to grasp how users act and get ready for any surprises that may come your way.
Select the Platform
Picking the right platform is super important when you begin an online marketplace.
There are so many options out there, and each one has its own features and flexibility.
Some popular choices are Magento, WooCommerce, Shopify, and Bagisto.
Magento and WooCommerce are really popular among the best eCommerce websites all over the world.
Bagisto, which is based on Laravel, is a strong choice that offers great customization and scalability for marketplaces with multiple vendors.
A good marketplace platform can help you draw in more customers and expand your business effectively.
Choose and Register the Domain Name
Choose a special domain name before launching your online store, because it acts as the entrance to your brand on the internet.
It’s best to go with a .com extension, as it’s simpler for people to recall and gives your marketplace more trustworthiness.
Some well known domain providers are GoDaddy, Domain.com, Name.com, DreamHost, NameCheap, and Bluehost.
Web Hosting
Having reliable web hosting is super important for making your online store available to people all over the world.
Dedicated hosting gives you more bandwidth and storage compared to shared hosting, which is perfect for expanding eCommerce sites.
You might also want to consider cloud hosting, as it provides better uptime and saves money by using several servers to handle traffic.
Some well known hosting companies are Kamatera, phoenixNAP, Amazon Web Services, Microsoft Azure, Google Cloud Platform, and Php Web Hosting
Integrate with Shipping Providers
To handle product shipment in your online store, it’s important to work with trustworthy shipping companies.
Some popular options are Aramex, FedEx, DHL, and other local logistics partners.
Set Up a Payment Gateway
A safe payment gateway is really important when you begin an online marketplace. It helps transactions go smoothly and makes customers feel more secure.
Provide different payment methods such as credit or debit cards, net banking, digital wallets, and UPI so that customers can choose how they want to pay.
When customers are happy with the payment choices, they are more inclined to buy again.
SSL Certificate
An SSL certificate is really important for keeping payments safe and protecting customer information in your online store.
It helps create trust, boosts your search engine rankings, and keeps your website safe from hackers.
Market Your Site
Good marketing is really important for making your online marketplace bigger and getting more buyers and sellers.
Use social media, SEO, email campaigns, and paid ads to get people to notice you and bring more visitors.
Track Performance
Keep an eye on important numbers in your online store, like sales, customer orders, and Monthly active users (MAU).
Looking at how users act can show you where things can get better and make shopping more enjoyable for everyone.
Above are some key points to consider when creating your own marketplace.
Let us know in the comments which metrics you followed while building your marketplace solution.
Hope it will be helpful for you. If you have any issues, feel free to raise a ticket at Bagisto Support.
