To build a marketplace platform is to create a place where others do business with each other. Sellers or service providers put their offer online, buyers find and book it, and you earn on every match. Think of a platform for local tradespeople, second-hand materials or equipment rental.
That's different from an online shop. In an online shop you sell your own products. In a marketplace you bring two groups together. That makes the technology a little more complex, but above all the launch. In this article you'll read what you need and how to keep the risk small.
What exactly is a marketplace platform?
A marketplace is a two-sided platform: there are providers and buyers, and both groups need to see value in it. You're the go-between who provides trust, clarity and a smooth process.
There are roughly three types:
- Product marketplace: sellers offer goods, buyers order and pay through the platform.
- Services marketplace: customers find a tradesperson, coach or other service provider and book an appointment or request a quote.
- Rental platform: people or businesses rent out spaces, vehicles or tools for a period.
Want to sell your own products through existing platforms such as bol.com instead? Then our article on your own online shop or a marketplace is a better place to start.
The chicken-and-egg problem: supply or buyers first?
The biggest challenge of any online marketplace isn't the software. It's the launch. Without supply, no buyers come, and without buyers, providers don't want to join. Many platforms get stuck here, however good the technology.
Here's how to tackle it:
- Start narrow. Pick one region, one industry or one type of product. Better a busy market in one city than an empty market across the whole of the Netherlands.
- Get supply first. Approach providers personally and help them post their first offer.
- Give providers a reason to stay, even while there are few buyers. For example a free profile page that ranks well in Google.
- Do the first part by hand if you have to. Arranging matches manually teaches you exactly what the software needs to do later.
Which parts does an online marketplace need?
Every marketplace is different, but these building blocks almost always come back:
- Accounts for two types of users, each with their own dashboard.
- Profiles and listings, with photos, prices and availability.
- Search and filters, for example by location, category and price.
- Messaging between buyer and provider, so questions stay within the platform.
- Booking or ordering, with confirmations by email.
- Payment through the platform, with your commission deducted automatically.
- Reviews and ratings to build trust.
- An admin area for you: approving providers, handling reports, tracking payouts.
Not everything needs to be there at launch. You can replace messaging with plain email at first, and add reviews later. Start with the smallest platform that lets the first transactions happen. Then look at what users really do and miss, and only then build the next part. That way you avoid spending money on features nobody uses. Read more in our article on building an MVP.
Marketplace payments: what to watch for
Payments are trickier in a marketplace than in an online shop. The buyer's money goes to the provider, and you keep a share. This is also called split payments. Holding other people's money yourself, even temporarily, is regulated in the Netherlands, so you don't want to do that yourself.
The solution is a payment provider with a dedicated marketplace feature. It handles the split, verifies providers' identities and pays them out. You build the integration. When choosing, look at the supported payment methods (such as iDEAL), the cost per transaction and how easily providers can sign up. Rates change regularly, so always check the current price. Read more in integrating online payments.
How do you make money from your own marketplace?
Choose your business model early, because it shapes how your platform is built. The common models:
- Commission per transaction: a percentage of every sale or booking. Logical for providers, because they only pay when they earn something.
- Subscription for providers: a fixed monthly amount for a profile or extra features.
- Pay per listing or per lead: providers pay for a listing or for each enquiry they receive.
- Featured listings: providers pay to appear at the top.
A commission only works if payment runs through the platform. Otherwise buyer and provider simply arrange things between themselves after the first time. So make it attractive to stay within the platform, for example with buyer protection, reviews and easy invoices.
Rules and trust on a marketplace platform
As a platform, you're responsible for more than just your own website. Think about these points in advance:
- Terms and conditions for both buyers and providers.
- A privacy statement and careful handling of personal data, in line with the GDPR (AVG in Dutch).
- A way to report illegal or misleading offers and remove them quickly. European rules for online platforms, such as the Digital Services Act, set requirements for this.
- Checks on providers, especially for tradespeople or rentals.
- Clear agreements on disputes, returns and cancellations.
Which rules apply to your platform exactly depends on what you offer. Have a lawyer check your terms and approach before you go live.
Build a marketplace platform with Violexa
At Violexa we build custom web applications, including platforms where several types of users come together. We start with the question of how you'll attract the first providers and buyers, and build the smallest working platform around that. Then we expand step by step.
A custom web application starts from €1,799 excl. VAT (€2,177 incl. VAT) per project. A full marketplace is usually a larger project. For that you get a fixed price in writing up front, so there are no surprises. Want to know what affects the cost? Read how much does a web application cost.
Got an idea for a marketplace? Book a free quickscan. In 30 minutes, online or on site, we discuss your idea. Afterwards you get short written advice with a price indication. You're not tied to anything.
Frequently asked questions
How much does it cost to build a marketplace platform?
That mainly depends on the number of features, such as payments, messaging, reviews and bookings. A first version with just the core is much cheaper than a complete platform. At Violexa, custom work starts from €1,799 excl. VAT (€2,177 incl. VAT), and larger projects get a fixed price up front.
Can I build a marketplace with WordPress or an off-the-shelf package?
For a simple test, that's sometimes possible with a plugin or ready-made marketplace software. As soon as you need your own rules, payment flows or integrations, you often hit limits. Custom work gives more freedom, but costs more at the start.
How do you get the first users on a new platform?
Start with one niche or region and bring in providers personally first. Help them with their first offer and make sure their profile is easy to find. Then attract buyers with SEO, ads and your providers' own networks.
Can I pass payments on to sellers myself as a platform?
Managing other people's money is regulated. That's why most platforms use a payment provider with a marketplace feature, which handles the split and payout. If in doubt, get legal advice.
