How to build a marketplace

Marketplaces are taking over the world. If you live in a modern city you probably experience it by taking an Uber or ordering food with help of your phone. This new form of business that was raised not so long time ago is now responsible for 52% of all e-commerce sales in the world.

So why not think of building your own marketplace as a new form of your daily business. There is a potential in different market sectors not dominated by global players, but even if you think about it closer you will notice that society is getting back to old fashion “be local, support local”.

If you do it wisely and start local you can have a sustainable business that can bring you solid revenue every month.

There are challenging things in building a marketplace. The first and biggest issue is the software. In the current times, software developers cost a lot and if you decide to build it by yourself you have to prepare yourself for an initial investment.

If you decide to to it by yourself, you will find a lot of smaller problems that will take your time and cost you a lot more money than you think. Do you have other options? Yes! You can use a marketplace generator, just keep reading.

Using a marketplace generator will dramatically lower your initial costs of bringing your idea to life. You can use the money for promotion, marketing and sales. Your time to market is almost instant, you can do marketplace business right away, which is especially important when you find your niche And want to use this opportunity.

What else do you need, to run a marketplace business:

  • You need a payment operator
  • You need to have your own domain and name
  • You need to have an idea how to bring to your website both parties…. a plan of attack

Let’s start from the begining

Marketplace generator

There are different types of marketplaces. Rental, booking, trading, the right choice depending on your niche and expertise. We will focus here on the most popular one… a rental marketplace. A marketplace is similar to Airbnb, booking.com, car rentals, and more. What’s important we do not talk only About marketplaces designed for real-estate… this can be anything you can rent: rooms, attractions, cars, scooters, bikes, and whatever you imagine.

To generate a marketplace you can use the getreve rental marketplace generator. Simply join the platform and activate the tool.

You will be taken to a simple wizard where you provide information about your marketplace's most important values:

If you run a marketplace you will earn money on commission taken from every transaction made. For example, if someone in Houston will place their home for rent And someone else will rent it, the marketplace will calculate a commission that will be paid to you.

In the next step you need to define what’s your marketplace product. Those are pre-defined product data sets. For example, if you choose properties Then the system will add “Number of rooms” to the product description. If you choose vehicles you will see their “Number of passengers”

You can choose one of the predefined product templates or you can build your custom one. Like the example below. I’m building a product of a “Boat”. I define the fields someone with the boat needs to fill to add an offer to a marketplace.

This is how it looks customized, but we will stick to properties for the purpose of this demonstration. And that’s it your marketplace is ready to rumble!

Every generated marketplace has a unique internal address where you can find your marketplace. This is only for the initial purpose, later you can easily add your own domain and build your own branding. This takes a little time for you to do, so an internal address is a perfect solution for You to build your marketplace as fast as you can. After 5 minutes of your time, your marketplace is ready and looks like that:

At first it’s empty, but it gives you an overview how it will look like. You can later add things like

  • Your domain
  • Your logotype
  • Your colors
  • Build more product fields
  • Adjust how the search works
  • Define main language
  • And finally configure how your marketplace trading process looks like

Ok so before we will show you how it works from the management panel, let’s become someone with a room for rent in Houston. I’m going to the platform and adding an offer:

Next the host define avability:

And done, the offer is there

Now if someone would like to rent it they can easily check the availability and proceed

As we mentioned above the whole process of marketplace trading is a thing that you need to calibrate. You need to decide for example if:

  • Offers are moderated
  • You accept offers only from a specific location
  • If marketplace needs approval from the host side
  • If auto-approval will take you to the payment process.
  • And more

It’s too wide to discuss it now, however, you just need to know that you need to understand your business and set up the system with the best fit for your expertise

Let’s talk about the payment process. Getreve marketplaces can work in 2 different models:

  • Free. This means that no commission is taken from users (mostly for non-profit organisations)
  • Paid. It means that people pay a commission for every transaction.

If you choose a paid option you have 3 types of operating models (getreve constantly expand the options here)

  • Wire transfer (Manual). Renting user will see details of a payment to a bank account and he needs to do that manually. The host needs to confirm the payment.
  • MangoPay (Automatic). Renting users will pay with a credit card and money will be transferred to a host automatically.
  • E-payments with gateway (automatic). The host provides his own payment gateway credentials and renting user-pay directly to him

And what about the commission to you. It depends on the selected model above. If you choose an automatic payment system will collect payment automatically.

If that’s not possible it will calculate a commission and force users to pay the balance. If it stays negative system will lock the usage of a platform.

What about managing and promoting a marketplace:

As a marketplace operator you have access to a marketplace management panel

In this panel you can easily manage all necessary things like:

  • Clients
  • Offers
  • Orders
  • Settlements (client wallets)

You have numerous options of configuration, everything which is necessary to run a marketplace business. We also give you a variety of options to build pages within the system with your content, add banners, promotional materials, and create deals.

We’re also proud of the social impact option. When you activate it system will collect additional payment that can be sent to a 3rd party organization that people can choose

So you have your own marketplace in a matter of minutes, what you should do next.

First of all you need to think about entering as many offers to a system as you can and adjust the process to a “rollout” stage. So if you for example build a marketplace for renting houses, try to address as many house owners as you can. At first, do that manually, do not invest in any marketing Ads, because you can’t compete with a giant at this stage. Simply go to a competition page and reach people who own houses, offering them better terms and help. If it’s necessary you can help them to enter information into your portal, but remember to provide their proper email address because they Will receive information about rental offers.

At the start you should switch your system to “auto-approve offer” to off. This means that the host will receive a question “If the house can be rented on the selected dates”. Host clicks approve or decline, if he approves client is taken to a payment processor. If the host does not approve within 24 hours the offer will be automatically declined. In this model, you can build an easy approach roadmap for all the house owners.

New step is a little bit more tricky, you need to find a way to reach people. Again at the start do not think about building a marketing campaign in google ads. Focus more on reaching people directly, finding partners that will share the portal with other people, use Facebook groups.

One of the most important thing in running a successful marketplace is the time! When you start your marketplace and add offers you will generate a lot of content. With proper descriptions, the content will be indexed by google and after some time this will bring more traffic to your website.

What’s most important to remember is the opportunity that the marketplace generator is giving you. An opportunity to go to market, not wait for software development. Money that you will spend on that you can use for your sales and marketing.

Try to build your marketplace now with getreve generators!

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