Are you inspired by the success of online marketplaces like Amazon, Etsy, Airbnb, and eBay? Wish to create a marketplace like theirs? Then you are at the right place.
The enormous growth of the online marketplace attracts many entrepreneurs like you. Establishing an online marketplace seems challenging, but it’s not when you have proper guidance.
I welcome you on the journey of building a no code platform. You require step-by-step guidance to create a marketplace. Don’t worry! We’ll help you with that.
In this journey, you’ll get to know about everything from building a marketplace to launching a marketplace.
Well! Start your journey as an Online B2B Marketplace Entrepreneur.
Before moving how to create a marketplace, first know about the online B2B marketplace.
What Is A B2B Marketplace?
“B2B” stands for “Business to Business.” It often refers to a business strategy where enterprises provide services or supply goods to other businesses rather than private individuals.
The phrase has recently started to be used interchangeably with online trade and may also refer to SaaS products, B2B marketing agencies, and other supply businesses.
In simple words,
The B2B marketplace offers an online platform for business owners who can provide their products/services to their customers. Thanks to the online B2B marketplace, now business owners can reach their clients globally.
So by now, you might have a question: does the B2B marketplace have any classifications?
What Are The Types Of Online B2B Marketplaces?
Based on the type of business (products/services supplied) or the business style, we may differentiate the several B2B marketplaces.
B2B marketplace can classify into two types,
- Vertical B2B Marketplace – focuses on a specific niche or sells the product to a particular business person like textile owners, automotive, etc.
- Horizontal B2B Marketplace – establishes the connections between firms offering a wide range of products and services in various market areas.
Apart from these types, the B2B marketplace further classify into
- B2B Product Marketplace connects various companies which provide products like office supplies, furniture, packaging, clothing, etc.
- B2B Service Marketplace connects various businesses that offer services like travel, food, beauty service, event management, etc.
- Hybrid markets are intricate networks, including B2B and other business models for goods, services, B2C, and C2C components. In addition to selling directly to retail customers, it assists other businesses in meeting their needs.
Now, you have an idea of what is a B2B marketplace. Second, you need to decide which marketplace platform you are going to use. You can create a marketplace website with or without involving the code. But before deciding, you need to know the differences between marketplace no code and coded platform.
Difference Between No-Code Marketplaces And Coded Marketplaces
Time For Development
No-code marketplace promises to deliver the marketplace instantly or within a short time. There are people who use these platforms and create a marketplace shortly. It is not the same in a coded marketplace.
A study conducted by Good Firms has found that creating a custom marketplace typically requires an experienced team to spend an average of 4.5 months on the entire development process.
It includes identifying requirements, careful planning, designing, programming, testing, and deploying the finished product.
The development of a coded marketplace can be a lengthy process, as highlighted in the Good Firms study which reports an average timeframe of 4.5 months.
Nevertheless, opting for a No-code marketplace solution allows you to create a marketplace that meets your business needs quickly.
Cost For Development
Most No code marketplace works on SaaS. With SaaS, you can cut off the development cost because it’s on a subscription basis.
For example, QMarket, a SaaS marketplace, provides a B2B marketplace solution for less than $50. Along with this, they provide a 30-day free trial where you can check your marketplace operation.
However, in a coded marketplace, it is not possible, because you’ll need to engage a skilled team of developers. The price may change based on the nature and extent of your project.
In order to complete the whole design and functionality of the applications, the majority of the custom-fit software development projects, according to Soltech, cost between $40,000 and $250,000.
Legacy code and restrictive data models are at the heart of the coded marketplace. Launching a project can be challenging since app developers must identify all elements (such as which third-party applications must incorporate) from the beginning. As a result, later on, it will be necessary to make adjustments and updates or perform another labor-intensive activity.
Whereas in a no-code marketplace, you can load data more quickly and logically since your data will save as a JSON document.
You may start updating immediately with the right to make necessary adjustments on the fly and a complete redirection when needed. Thanks to no-code platforms and databases without schema.
Reduced Legacy Maintenance
The cost of recruiting expert engineers and ongoing legacy maintenance are only two ways that complex coding projects can have a negative impact on an organization’s bottom line.
A company’s resources and financial resources might be severely depleted by legacy maintenance for the IT department. Reverse engineering needs in-depth code, which takes time, to modify or correct an engineer’s work.
As time goes on, this implies that businesses are paying for incredibly costly engineers to keep things the same.
Maintaining old code is not necessary with no-code development. You may create an online marketplace without knowing any code, thanks to platforms like QMarket.
Additionally, they may coexist with current legacy systems, giving your engineers the freedom to preserve what functions well and modify what doesn’t.
Now, you clearly know why a no-code marketplace is best. Thirdly, the main thing you’ll learn about is the steps to create a marketplace with no code.
How To Create A Marketplace?
So creating a marketplace platform involves seven steps. By following these steps, you can build a marketplace app successfully. The steps are as follows,
Step 1: Identifying Business Niche
The first thing you should focus on in identifying a business niche is finding the business’s pain points. Follow these 5-steps,
- Find Key Customers. By now, you have a business idea, so find a potential customer for your business. Your target audience must be easily identifiable and accessible.
- Target Market. Analyze your customer’s behavior and filter the customer with similar behavior to your business idea.
- Look For Competitors. After identifying the target market, look for the competitors. Find your competitor’s strengths and weaknesses. Discover a way to turn their weakness into your strength.
- Test Your Idea. Before confirming your business niche, test it. To discover new concepts and showcase your own, attend various business fairs.
- Revise Your Business Niche. Reflecting and readjusting are the secrets of many successful businesses. Constantly revise your business niche because there is always room for improvement.
Step 2: Choosing A Business Model
The second is a crucial thing because it can turn your business upside down. A good business idea with a poor business model is a failure.
The business model for a no code marketplace is a chicken-and-egg problem because you need to bring the sellers and buyers to your platform.
You can design the business model considering three things,
- Customer Needs. Your customer’s needs and expectations should align with your business model. You can combine many business models but satisfy both customer needs and your profit.
- Value of Proposition. Consider the model that makes you stand out from the competition. Your business model should explain why your customers should select you over your rivals for their company.
- Market Potential. Analyze your market to learn how other businesses are making money. If they have been in operation for some time, they have undoubtedly developed a replicable business model.
Some popular revenue model for marketplace owners is
- Listing Fee
- Commission Fee
- Service Fee
- Ad Fee from google
Step 3: Selecting The Right No Code Marketplace Website Builder
Since no code marketplace works on SaaS, you need to select the right marketplace website builder.
When selecting the online marketplace builder, consider the following
- Features – check whether the features satisfy your business needs.
- Go for a free trial – many SaaS marketplace vendors offer a free trial where you can know about the features.
- Security & Privacy – check if the marketplace vendor’s platform is secured or not.
- SLA – Check their uptime and downtime meanings along with the cost of SLA.
Step 4: Building MVP (Minimum Viable Platform)
The Minimum Viable Platform (MVP) is a clipped version of your marketplace that offers the essential functions in order to launch it early. You may shorten the process, save money, swiftly test the assumptions, and get insightful feedback from early adopters.
The MVP helps you to,
- With MVP, you can quickly release your platform to the market.
- You can test your platform with real users before fully committing to the large-budget platform.
- You can learn what resonates with the company’s target market and what doesn’t.
Several frameworks can assist us in creating a successful MVP, depending on the nature of the project.
Step 5: Testing Product
Testing is a vital part of creating a marketplace. As in the previous step, you can test your platform as an MVP. From the feedback of the actual user, you can revise your product. The response can improve in the full launch. It aids in making money before a full launch.
Step 6: Launching the Marketplace
Finally, the launch of your platform is the satisfying result of all the time and work you spend on research, testing, and development. You will often gain the most vital information when the launch happens. Before launching, once again, test your platform. Make sure that your marketplace improves the response from the MVP.
Step 7: Promoting the Marketplace
Without promotion, you cannot hold your customers for a long time. Promoting your marketplace involves 4 steps.
Step 1: Develop a marketing plan – This involves creating a detailed strategy that outlines your marketing goals, target audience, messaging, and tactics. It helps you identify the most effective ways to promote your product or service, allocate your resources, and measure your success.
Step 2: Use the power of SMM (Social Media Marketing) – SMM involves leveraging social media platforms like Facebook, Instagram, Twitter, and LinkedIn to connect with your target audience, build brand awareness, and drive engagement. It includes creating compelling content, running targeted advertising campaigns, and engaging with users to build a community around your brand.
Step 3: Plan an effective SEO strategy – SEO (Search Engine Optimization) is the process of optimizing your website to rank higher in search engine results. By conducting keyword research, optimizing your website’s structure and content, and building high-quality backlinks, you can improve your website’s visibility and attract organic (non-paid) traffic from search engines like Google.
Step 4: Take Advantage of Email marketing – Email marketing involves sending targeted messages and promotional offers to your subscribers’ email addresses. It helps you build relationships with your audience, nurture leads, and drive conversions. By segmenting your email list, personalizing your messages, and tracking your email campaign’s performance, you can effectively reach your audience and encourage them to take action.
Mistakes To Avoid While Creating a Marketplace
Finally, you have learned about creating a marketplace. A simple mistake can slow down your marketplace creation. Some of the common mistakes you should avoid while creating a marketplace platform is.
Lack of Market Research
It is critical to do market research and competitor analysis to keep ahead of the competition. The success of your internet business is determined by your competition, consumers, and merchants in your market.
Make a thorough study of your sector to identify any market gaps. Spend a lot of time and money investigating the market, seeing what competitors are doing, and determining where you can provide value.
Attempting to Excel in Everything
Simplicity and concentration are the core building blocks for a revolutionary marketplace platform that is highly scalable and designed for long-term viability.
You cannot be perfect in everything, time makes everything perfect. So don’t let your hope down while seeing MVP’s negative response. Make those responses into positive ones.
Choosing Untrustworthy Platform
Security is crucial in an online economy where customers submit private information like home addresses and credit card details. Furthermore, shaky payment methods destroy credibility, frighten away customers, and hurt businesses.
To secure your customer data, understand how to establish a marketplace with robust security procedures. Always work toward providing customers with pleasant browsing and purchasing experiences as well as transparent information about suppliers, rules, and assistance.
Concluding this lesson with the beginning stage of marketplace entrepreneurs. Creating a marketplace platform involves many things.
Every step is crucial. You will face many challenges, but it will be fruitful. Whatever happens, the things you learn will help you in a hard time building a marketplace.
Good Wishes On Your Journey As An Online Marketplace Entrepreneur!