25 August 2021

Marketplace development - how to succeed with a marketplace app?

The year 2020 was a record year for online sales, influenced by the pandemic that persisted for months. Not only online stores, but especially Marketplaces were in great demand. Allegro, Amazon or eBay are just examples of platforms offering products from many sellers. How did they manage to become so successful? How have they developed an established position in the market?

Dynamic development of the Marketplace

With each passing year Internet sales are growing. We buy online more and more often, which is determined by the easy availability of products, the ability to compare prices and offers, as well as a huge product base. According to Divante's eCommerce Trends Report 2021 statistics, in 2020 sales in marketplaces increased by 100%, while sales in stationary stores remained unchanged. Due to the pandemic, Amazon created an additional 100,000 jobs in one week alone, and another 1.3 million vendors started selling on the platform. This shows the scale of growth and interest in selling platforms and proves that it is now worth investing in this industry. Marketplace apps are in active development and this is not expected to change in the coming years.

A (not so) difficult market

Due to the growing competition, as well as the realization that the owner of the application has to benefit from making vendors' products available, marketplaces should focus on the benefits for vendors. This way, they are assured that it is a profitable way of selling, even if it is an additional cost for them (commission on sales or monthly subscription). An example is SEO support, i.e. help with positioning of texts that allow to achieve higher positions in Google. The higher position in the search engine, the better visibility, which in turn translates into increased interest and conversion, and consequently sales. Marketplaces also have access to a lot of useful data, so they are able to create more effective online ads. At the same time, however, there are concerns for the seller as to whether the acquired data is secure. In order to gain the trust of sellers, it is therefore necessary to ensure their security. Robust security measures and a proper data confidentiality policy are essential.

Using modern technology...

No marketplace would be very successful if it didn't have access to and use modern technology. The basis of web development has always been JavaScript. The advent of the Node platform has made it possible to create an entire application using JavaScript. Symfony or Laravel is also an interesting choice. Programming on multiple mobile platforms using a single code base requires a mobile application framework such as React Native. When it comes to security and scalability, Docker, which is an open source software designed to implement virtualization at the operating system level, can be helpful.

Investing in an expert

The marketplace is growing, which means stronger and more competition, which in turn translates into more difficult to build your position in the industry. To make sure that you have a good, stable, secure and intuitive application for sellers, you should use the support of marketplace developer. An expert not only has the experience, but also has access to the necessary tools. Moreover, changes in the programming area are changing very dynamically, so constant updating of knowledge is required. A good programmer will create software that properly reflects the business context of the application and at the same time will take care of its scalability. They will choose such technological solutions which will work best in this particular project. Moreover, they will offer support and assistance at every stage of the project. Marketplace today is an investment in the future. However, you need to be aware that the marketplace will constantly change and evolve. To be successful, an application must stand out, combine intuitive use, scalability, data security and additional benefits for the seller.

Lukasz Bozek

Lukasz Bozek is a founder and CEO of Softiero, a graduate of the Warsaw School of Economics and MBA at Lazarski University. Lukasz started his career as a FX dealer at Santander Bank. As a passionate of new technologies he founded Softiero which is developing innovative tech startups.

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