How to create an online marketplace

An online marketplace is where a transaction between multiple buyers and multiple sellers are moderated on a single online platform. A marketplace operator/ admin processes these transactions on a regular basis. It is essentially an aggregator. Ola, Uber and Flipkart are good examples of online marketplaces. An online marketplace works well only at scale and getting to scale should be the first priority for any startup. Here are a few steps to create an online marketplace.

Strategise

A niche sector that the entrepreneur is familiar with needs to be picked. Opportunities for connecting buyers and sellers online in a field can be spotted, be it designers, web developers, or other service providers. However, if any of these markets are being considered, firsthand experience/ expertise is recommended. An entrepreneur needs to tap into his background, education and experiences to create an online marketplace which would disrupt the existing market.

Server Hosting

An online marketplace would require a hosting service. Subscription to an existing web-hosting service would be ideal as they have the servers, services and connections available for reasonable monthly fees. The servers are preconfigured to resist hackers. Frequent backup of data ensures that no data is lost. Several hosting services should be researched to determine the fee structures and available services. It is essential to ensure that it enables with AWS cloud hosting for performance at the highest levels.

Build an MVP

The front end and the back end of the portal needs to be integrated based on the requirements like location, language, payment integration, delivery, shipping etc. along with admin friendly features.

Building a minimum viable product can start off with wireframe or preparing a blueprint to check the way the app will look like on a phone. Wireframe would not be functional in themselves but it could help in the initial visualisation while explaining the idea to mentors, investors etc. The are multiple ways to build a wireframe i.e., it could be built by the entrepreneur himself, outsourced to programmers or even by hiring a company that specialises in this. Due to the significant costs involved in hiring a company, it is preferable to build the wireframe in-house. Swift in Xcode can be used if the latest Mac OS is available as it is free. This would also help gain credibility if pitching the idea to investors. However, it can be time-consuming and difficult for a beginner with no coding skills. Due to the emergence of sites like Upwork, it is possible to hire overseas programmers to help build the wireframe. However, it might take some time to convey the idea to programmers who have no idea of the product to be developed. If capital is not an issue, hire professional companies to create them. However, it would cost upwards of Rs. 1 lakh to hire a standard company to do the job.

Marketing

Marketing the new portal is essential to ensure a steady stream of visitors. Digital marketing campaigns like search engine optimisation (SEO), search engine marketing (ads search, Google Adwords, Display Ads, Remarketing etc.) and email marketing would help reach out to a significant number of potential visitors. It is essential to create a buzz around the new portal, hence all marketing mediums need to be explored.

Challenges faced by new marketplaces

The sufficient number of buyers and sellers must register with the online marketplace, else if there are insufficient buyers and sellers, the site won't take off. Scaling to this level requires time and effort and sustained parallel work on advertisement and marketing along with the creation of the portal would ensure that subscription of the new marketplace.

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Frequently Asked Questions

Common questions about Online Marketplace Creation for Financial Services.

Strategizing is the first step in creating an online marketplace. The entrepreneur needs to identify a niche sector they are familiar with and spot opportunities for connecting buyers and sellers online in that field. It's recommended to tap into one's background, education, and experiences to create a disruptive online marketplace.

The entrepreneur can build the wireframe or minimum viable product (MVP) themselves using tools like Swift in Xcode if they have the latest Mac OS. Alternatively, they can outsource the wireframe development to programmers or hire a company that specializes in this service. The choice depends on factors like budget, technical expertise, and time constraints.

Hosting is crucial for an online marketplace because it provides the necessary servers, services, and connections to run the platform. Subscription to an existing web-hosting service is recommended as they offer preconfigured servers that can resist hackers, and frequent data backups to prevent data loss.

Marketing is essential to ensure a steady stream of visitors to the new online marketplace. Digital marketing campaigns like search engine optimization (SEO), search engine marketing (ads, Google Adwords, Display Ads, Remarketing), and email marketing can help reach potential visitors. Creating a buzz around the new portal through various marketing mediums is crucial.

The biggest challenge for new online marketplaces is attracting a sufficient number of buyers and sellers to register on the platform. If there are insufficient buyers and sellers, the site won't take off. Scaling to this level requires time, effort, and sustained parallel work on advertisement and marketing along with the creation of the portal.

When choosing a hosting service for an online marketplace, it is essential to ensure that it enables integration with AWS cloud hosting for performance at the highest levels. Researching different hosting services, their fee structures, and available services is recommended to make an informed decision.

Firsthand experience or expertise in the chosen niche is recommended when creating an online marketplace because it allows the entrepreneur to leverage their background, education, and experiences. This familiarity with the market can help in identifying opportunities and creating a disruptive online marketplace that addresses the needs of buyers and sellers.

When building an online marketplace, the front-end and back-end of the portal need to be integrated based on requirements such as location, language, payment integration, delivery, shipping, and admin-friendly features. These components are crucial for the smooth functioning of the marketplace.

An online marketplace works well only at scale. Therefore, getting to scale should be the first priority for any startup in this space. If there are insufficient buyers and sellers on the platform, the site won't be able to take off and succeed.

To create a buzz around a new online marketplace, entrepreneurs can explore various marketing mediums. Digital marketing campaigns like SEO, SEM (search engine marketing, Google Adwords, Display Ads, Remarketing), and email marketing can help reach potential visitors. Additionally, generating buzz through traditional marketing channels and leveraging social media can also be effective.