Online marketplaces are the most challenging as well as promising business ideas that have unbelievable scope and future. Many leading ecommerce giants have proved that the industry has high demands and millions of users are utilizing these platforms.
One such remarkable platform is Etsy that has gained the attention of a maximum number of users who show special interest in purchasing hand-made accessories, furniture and vintage clothing. This popularity has made a revolution in the minds of entrepreneurs and they have started showing interest in creating a website like Etsy.
Let us first have a deep look about what an online marketplace is and how to build an online marketplace like Etsy.
What Is An Online Marketplace?
An online marketplace is a digital platform where several companies will display their products or services through the platform and will reach their audience easily. Buyers will find their products or services by searching within the platform and will buy them online.
The checkout process is quite simple and will contain payment gateways integrated to it. Buyers can select their comfortable payment option and can get their products at their doorstep.
Sounding Success of Etsy
The success gained by Etsy is transparent and can be clearly identified by all. This made entrepreneurs think about creating an online marketplace like Etsy. Let us analyze the key reasons behind the success of Etsy.
- Value creation – Etsy has its own unique way of providing product offerings to its users. The entire marketplace is restricted to sell only handcrafted and vintage goods alone. This gives additional value to the marketplace and
- Sustainability – Etsy has sustained well in this market and there are many factors that have supported Etsy to stay long.
- Scalability – Etsy has a flexible marketplace model that allows business expansion and can hold numerous customer data that can be used anytime for customer behavior analysis.
A Business Model Canvas for an Etsy Like marketplace
Marketplaces like Etsy can succeed only if it has a perfect business model. Etsy has a reliable business model that benefits sellers, buyers and also the admin of the platform. Etsy connects sellers who are into selling handcrafts and vintage products.
All products are arranged under categories and this will facilitate buyers to easily find products of their choice. Buyers will pay through the platform and the admin will deduct the commission fee from the customer and the remaining amount will be settled to the concerned seller.
Features List of Etsy Marketplace
Let us split the features of Etsy for admin, sellers and buyers-wise as it will help you to build a marketplace like Etsy.
|Admin features||Seller features||Buyers features|
|Exclusive dashboard to understand the business performance.||Dedicated seller page to manage their store.||Easy registration process|
|Simplified commission setting.||Perfect order management.||Dedicated mobile application to buy products.|
|Tax and invoice management.||Excellent inventory control.||Advanced product search|
|Reports and analytics.||Easy transaction management.||Add products to the wishlist.|
|Easy customer and seller management||Internal chat system and many more communication channels to |
communicate with buyers.
|Review and rating system.|
Steps To Build An Online Marketplace Like Etsy
By seeing the success that Etsy has made and the revenue it has earned so far, every aspiring entrepreneur will be curious to know how to create an online marketplace like Etsy. You can find step by step guidance to build a marketplace like Etsy.
- Step 1: Research And Analysis – before beginning your own online store, you need to study the market and what is the real demand it has. Only through proper analysis and research can you set your marketplace. You need to know more about your competitors and should come with a unique marketing strategy to survive the competition.
- Step 2: Platform Development – while planning to build a marketplace like Etsy you need to put more attention in choosing the right platform. Make sure your platform supports device responsive design and provides customization options along with scalability features.
- Step 3: Development & Testing – development and testing process is a major task that seeks your involvement. You need to discuss with your developer and should see frequent demos about the performance of your marketplace platform and should confirm that the platform has gone under proper testing process.
- Step 4: Support & Scale-up – build a proper customer supporting team that can be more supportive in sorting out customers’ issues. Customers will gain trust with your platform only if you listen to their issues else you may lose your reputation easily.
- Step 5: Promote your brand – branding is very essential to run a marketplace like etsy. Your marketplace should be SEO-friendly only then you will be able to promote it online with less effort.
How Much Does It Cost To DevelopA Platform like Etsy
Cost is the major fact that comes in the mind of any entrepreneur who plans to build a marketplace like Etsy. But it is difficult to have a fixed price for building a platform as the features may vary according to the business requirement. It depends on several factors like developers you select to build your platform, the time it needs to develop it and what are all the features you want to have in it.
For a startup you can have basic features while for corporate business you need to have advanced features. In this case, the price varies along with these factors. If you need to have an affordable platform then you can go for a ready-made solution that is quite cost-effective.
Always do proper research to understand what your business model is and what exactly it requires. There are many marketplace platforms that are emerging markets on a day to day basis but the true fact is all of them are not finding it easy to survive in the market. So you need to take careful steps while building a marketplace like etsy and reach your target audience with your powerful platform.