How to launch a marketplace using the Marketplace Kit

What is marketplace?

A marketplace is an online platform that connects sellers and buyers enabling them to trade a wide range of goods and services from all over the world.

Types of marketplaces and their distinguishing features

There is a huge variety of marketplace types, but they are typically classified based on the type of activity they facilitate - selling goods or proving services.

In general, service and product marketplaces have common features, such as a wide range of products and services, ease of search and comparison, security of payment and delivery. The distinctions between marketplaces are also shaped by types of goods or services offered on the platform.

Service marketplaces are characterized by the following:

• providing services online;
• a variety of business models, for example, platforms serving to choose and hire specialized service providers;
• sellers are typically individuals who offer their services, transport aggregators, and other similar entities.

Product marketplaces are characterized by the following:

• address delivery;
• sellers are required to keep physical goods in stock in order to offer them for sale;
•  both individuals and legal entities can be sellers on product marketplaces;
•  goods are sold both wholesale and retail.

Benefits of having your own marketplace

Although there are numerous marketplaces that provide a range of options for sellers, they also have drawbacks that can impact business performance, including:

• high competition;
• difficulty in applying customized marketing strategy;
• strict contractual terms and conditions;
• high commission;
• limited expectation of returning customers;
• lack of diversity in pages design and functionality;
• rigid content requirements.

That is why creating a custom marketplace can be beneficial for entrepreneurs. In the following section, we will outline some of its advantages:

Monetization

Creating a source of extra income through sales commissions, advertising, sponsorships, and other revenue-generating channels.

Control over business processes

Capability to cater to customers' needs, adjust workflows to suit individual preferences, and specific business model.

Boost in sales 

Broadening your audience, acquiring new customers, and ample opportunities to market your products and services.

Business growth

New business growth opportunities in various directions, attracting fellow entrepreneurs, suppliers, and partners to collaborate.

Customization

Enhanced knowledge of your market by leveraging customer data, their behaviors and needs, allowing for customized sales and marketing strategies

Brand management

Entrepreneurs have the opportunity to establish their brand, increasing their credibility and trust among customers

If you want to create your platform as a separate additional source of income, or if you have a product or service that doesn't fit any existing marketplace on the market, then our tool, Marketplace Kit, can help you bring your idea to life quickly.

Marketplace Kit based on fdForge

Marketplace Kit is a set of ready-made tools developed on the basis of low code platform fdForge . Our platform is modular, easily integrates with other systems, and provides a range of pre-tested functionalities for web and mobile applications.

This approach not only saves time by reducing project automation costs, but also accelerates the launch of the MVP version of the project within an implementation timeframe of approximately 2 months 

The Marketplace Kit system features

Entrepreneurs can leverage the capabilities of Marketplace Kit, which include:

• User accounts
• Integration with sellers' product catalogs
• Searching and filtering products based on selected attributes
• Convenient order management system
• Integration with payment systems
• Built-in chats and notifications
• Ratings and reviews module
• Search engine optimization
• Adaptive and cross-browser version
• Integration with other systems via the API

Some of these features we successfully implemented for the Mapus project - an online platform for connecting customers and contractors. The client emphasized the need for a chat feature to be available to all users of the platform.

Due to our marketplace tools, the company now has the following features available for customers and contractors:

•     A chat feature to discuss task details, deadlines, and cost of completion
•     File sharing right in the chat
•     In-app calls
•     The anonymous feedback system for contractors through the chat using emojis 

Benefits of implementing the Marketplace Kit

When creating a marketplace, there are several key factors that need to be taken into account to ensure a smooth setup of the platform's functionality in the future. For this reason, we suggest using Marketplace Kit, which has a range of advantages due to its pre-built and tested features. In the next section, we will outline some of them:

Management, control and accounting

The ability to manage, monitor, and track financial transactions in a single convenient system greatly simplifies business management and enables quick access to necessary financial information.
For instance, you may need to obtain detailed statistics on all financial flows, revenue from referral programs, number of orders, various bonuses, and so on. Information about these operations is displayed in the system in the form of diagrams and graphs.

Product management

By ensuring that the products offered on the marketplace meet the needs of its customers, businesses can boost their conversion rates, sales, and customer satisfaction.

Our objective for Smart Remarket, an online platform that consolidates repair service and product providers, was to build a vast product catalog with well-defined categories and implement an intuitive search and filtering system.

As a result of cooperation, Smart Remarket now has:

• Multi-level menu by product categories and subcategories, allowing users to easily and quickly find the desired items
• Convenient search engine with hints
• An advanced filtering system that considers not only the product category but also other relevant parameters in order to better align with customers' preferences and needs and provide them with the most suitable product recommendations.
• Extensive product catalog, featuring a specialized structure that is tailored to accommodate the unique attributes of every category. Product listings are organized based on each product's unique attributes, rather than solely relying on its category, which makes it easy for our system administrators and managers to add or modify products and their detailed descriptions.

Connecting payment systems

Marketplace payment systems should be able to process all currencies supported by the marketplace, as well as the most popular payment methods in the countries where the marketplace operates.
For instance, if you're working with more than one local payment system, the issue of balancing funds across accounts arises. Marketplace Kit offers the ability to integrate payment systems, which not only streamlines the payment process, but also automates refunds and payouts to sellers.

Support

Marketplace support plays a vital role in maintaining the quality of products and services, enhancing customer satisfaction, and fostering trust in the platform. The appropriate Marketplace Kit tools will help ensure successful and efficient marketplace operation. Through the use of built-in chat and notification tools, buyers and sellers can easily communicate with each other on the platform. The ratings and feedback module also allows for the evaluation of product and service quality, helping to build trust in the marketplace.

Do I need a marketplace?

Marketplace is a highly effective business tool, facilitating efficient purchasing and selling, attracting new customers, expanding product and service offerings, and driving revenue growth.

The fdForge platform is a multifunctional solution that provides all the necessary components for a successful marketplace operation. It includes a CMS, CRM, business process management capabilities, personal cabinet functionality, product management, order processing, order fulfillment tracking, support, and more.

If you are considering whether your business needs the Marketplace Kit or not, leave your contact details in the form. Our manager will answer all your questions, explain the benefits and features of the system, and provide an individual proposal tailored specifically to your project.