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In the last blog post, we explored different types of marketplaces, including B2B, B2C, P2P, C2C, and various specialised models like digital, physical, service, auction-based, subscription-based, community-driven, and on-demand marketplaces, each with unique needs for customization. Each type caters to distinct needs and operates with unique dynamics.
Building on that foundation, this blog will delve into the critical features, backed by in-depth research, needed to develop your online marketplace website into an industry giant. Whether you're launching a new platform or scaling an existing one, understanding what features you need for your marketplace can significantly enhance user experience, operational efficiency, and scalability.
We'll break down essential features into two categories: those needed by customers (buyers) and those required on the platform side (sellers). Now let's explore the features that can transform your marketplace idea into a leading industry platform.
B2B marketplaces
Customer features:
Bulk order customisation: Allows buyers to customise large orders according to specific requirements.
Credit facilities: Options for payment on credit terms, enhancing purchasing power without immediate cash flow impact.
Advanced search and filters: To facilitate the search for specific products through detailed attributes.
Order tracking: Real-time tracking of orders from placement to delivery.
Multi-user account access: Enables multiple team members to access and manage the account, facilitating procurement processes.
Some tools that can be used to build these B2B features: Shopify Plus, Typeform, Stripe, Power BI, Slack & QuickBooks Commerce.
Platform features for sellers:
Volume pricing options: Ability to set prices based on order quantities.
Supplier dashboard: Tools for suppliers to manage orders, track inventory, and analyse sales data.
RFQ (request for quote) management: System to manage and respond to buyer requests for quotes efficiently.
Integration with ERP systems: Facilitates seamless data flow between the marketplace and sellers' enterprise resource planning systems.
Quality certification display: Allows sellers to showcase their quality certifications to build trust.
Some tools that can be used to build these B2B features: Airtable, Shopify Plus, Quick Base, Monday & Zapier.
These features can be seen in industry B2B examples. For example, Alibaba’s platform integrates powerful supplier search and communication tools, bulk purchase options, and trade assurance to protect buyers, similar to how Amazon operates at a massive scale in the B2B sector. As for customers, they benefit from Alibaba’s diverse supplier base, competitive prices, and detailed supplier reviews.
B2C marketplaces
Customer features:
Personalised engines: Custom interfaces that adjust to user preferences and shopping habits.
Customer reviews and ratings: To help buyers make informed decisions based on others' experiences.
Dynamic pricing and offers: Access to real-time offers and discounts based on market trends or user behaviour.
Wishlist and favourites: For users to save items in their account for future reference or purchase.
Loyalty programs: Rewards and loyalty programs that incentivise repeat purchases.
Some tools that can be used to build these B2C features: Square, LoyaltyLion, Bubble, Intercom, Drift & Smile.io.
Platform features for sellers:
Sales analytics and reporting tools: For tracking sales performance and customer trends.
Marketing and SEO tools: Integrated marketing tools to help sellers reach a wider audience and optimise product listings.
Automated inventory management: Automated systems to help sellers manage stock levels effectively.
Ad placement options: Opportunities for sellers to boost visibility through paid placements and featured listings.
Mobile management apps: Mobile apps that allow sellers to manage their store on the go.
Some tools that can be used to build these B2C features: Glide Apps, Google Analytics, Hubspot, Hootsuite, Klaviyo and Adalo.
Amazon is a well-known example of a B2C marketplace. The platform has a range of features for both sellers and customers such as automated dispute resolutions, performance tracking, product comparisons and customer reviews and ratings.
P2P marketplaces
Customer features:
User profiles and trust scores: Allows users to create detailed profiles with ratings and reviews visible to others.
In-app communication: Enables secure and private conversations within the app.
Location-based search: Users can search for listings based on their current location or specified areas.
Secure payment options: Provides various payment methods that are safe and easy to use.
Mobile accessibility: Ensures the platform is fully functional on smartphones and tablets.
Some tools that can be used to build these P2P features: Google Maps API, Braintree, Twilio, Adalo, Stripe or Paypal.
Platform features for sellers:
Peer review systems: Allows sellers to receive feedback from customers, building trust and credibility.
Real-time messaging: Facilitates direct communication between users without sharing personal contact information.
Geolocation services: Helps users find service offerings or rental options nearby.
Secure transaction processing: Ensures that all financial transactions are safe and secure.
Booking and scheduling tools: Enables users to manage their bookings or rentals directly through the platform.
Some tools that can be used to build these P2P features: Memberstack, SendGrid, Adalo, Bubble and Zapier.
Airbnb uses peer review systems to enhance trust, geolocation services for easy searchability, and secure transaction processing for payments. Their platform is designed to support both host and guest needs efficiently, demonstrating how essential these features are for P2P marketplace success.
C2C marketplaces
Customer features:
Search and filter options: Helps customers find products or services quickly.
Product comparisons: Allows side-by-side comparison of features and prices.
Wishlist and favourites: Users can save items for later review or purchase.
User reviews: Customers can read and post reviews on products and sellers.
Secure checkout: Streamlines the payment process while ensuring security.
Some tools that can be used to build these C2C features: Squarespace, Trustpilot, Webflow and Stripe Connect, Algolia.
Platform features for sellers:
Listing tools: Enables sellers to create and manage their product or service listings easily.
Customer analytics: Provides insights into customer preferences and behaviours.
Secure payment gateways: Offers various options for receiving payments securely.
Automated dispute resolution: Handles conflicts between buyers and sellers systematically.
Performance tracking: Tracks sales and customer interactions for strategic planning.
Some tools that can be used to build these C2C features: Shopify, Magento, Zoho Creator, Mailchimp and Airtable.
eBay is an example of a C2C marketplace that offers comprehensive listing tools, detailed analytics for sellers, and secure payment options. Their customer-focused features like advanced search filters, user reviews, and a reliable dispute resolution system make it a staple in the C2C marketplace sector.
Digital product marketplaces
Customer features:
Download library: Personal dashboard for customers to access their purchased digital products.
Preview options: Allows customers to view samples of digital products like books, music, or software.
User reviews: Enables customers to rate and review products which guide future buyers.
Gift options: Provides the ability to purchase digital goods as gifts for others.
Subscription access: For recurring access to products or services, such as monthly access to digital assets.
Some tools that can be used to build these features: Zapier, Typeform, Vimeo OTT, Squarespace, Memberful.
Platform features for sellers:
Instant product delivery: Automated delivery systems for digital products immediately after purchase.
Digital rights management (DRM): Tools to protect and manage the use of digital content.
Analytics dashboard: Tracks sales, customer engagement, product performance, and monetization trends.
Marketing automation: Facilitates targeted campaigns and promotions while ensuring scalability to handle increased customer outreach and data load.
Multi-currency support: Allows transactions in various currencies to cater to a global audience.
Some tools that can be used to build these features for an online marketplace: Gumroad, Podia, Shopify Digital Downloads, SendOwl, Drip.
Adobe has transitioned to a digital product marketplace website model by offering its software via a subscription-based cloud service. They utilise advanced DRM to protect their software, provide a detailed analytics dashboard for user activity, and offer a subscription model that gives users access to an entire suite of products. This model benefits from robust marketing automation to encourage upsells and renewals.
Physical product marketplaces
Customer features:
Augmented reality viewing: Allows customers to visualise products in their own space.
Easy return processes: Streamlines the process for returns and exchanges.
Price comparison tools: Enables customers to compare products and prices within the marketplace.
Live chat support: Provides immediate assistance for customer inquiries.
Loyalty programs: Rewards repeat customers with discounts or special offers.
Some tools that can be used to build these features: Augment, Zendesk, Yotpo, Klaviyo, Algolia.
Platform features for sellers:
Inventory management: Automated systems to track stock levels and manage supply chains.
Shipping integration: Tools to coordinate with shipping services and provide tracking information to customers.
Seller dashboard: Centralised area for sellers to manage listings, view sales analytics, and receive feedback.
High-quality image hosting: Allows sellers to upload high-resolution images to best represent their products.
Customisable storefronts: Enables sellers to personalise their shop appearance within the marketplace.
Some tools that can be used to build these features: Shopify, BigCommerce, ShipStation, QuickBooks Commerce.
Etsy is a well-known marketplace for physical goods, focusing on handmade or vintage items. It supports its sellers with tools for inventory management, customisable storefronts, and high-quality image hosting. For customers, Etsy offers features like user reviews, easy return processes, and an engaging user interface with live chat support. Their platform effectively uses these tools to connect individual sellers with a global customer base.
Service marketplaces
Customer features:
Search and filter options: Customers can easily find specific services based on categories, location, ratings, or availability.
Real-time availability: Shows up-to-the-minute provider availability for bookings.
Review and rating system: Allows customers to leave feedback which helps others make informed decisions and boosts provider credibility.
Secure payment gateway: Ensures that all transactions are processed securely within the platform.
Mobile app access: Offers a dedicated mobile app for easy access to services, bookings, and payment on the go.
Some tools that can be used to build these features: Alloy Automation, Typeform, Trustpilot or Review.io, Paypal or Braintree and Appy Pie.
Platform features for sellers:
Booking and scheduling system: Allows service providers to manage their appointments and availability calendars directly on the platform.
Service listing customisation: Enables providers to create detailed service listings with descriptions, pricing, and media.
Customer relationship management (CRM) tools: Integrates CRM functionalities to track client interactions, notes, and booking history.
Payment processing: Supports various payment methods and includes invoicing and financial tracking features.
Performance analytics: Offers insights into bookings, revenue, and customer feedback to help providers optimise their services.
Some tools that can be used to build these features: Calendly or Acuity Scheduling, Zoho Creator, Stripe, Tableau and Squarespace.
Service marketplaces vary widely depending on the nature of the services offered. If you're planning to build a service marketplace, it's essential to consider the specific type of service you wish to offer, as each type requires a unique set of features. Here’s how you can tailor features for different types of service marketplaces:
Home services marketplace
Specific features to consider:
Real-time scheduling: Customers need the ability to book services instantly based on the availability shown by providers.
Background verification: Essential for ensuring that service providers are trustworthy, especially for services inside homes.
Geo-location services: Helps customers find services in their area and allows service providers to limit their offerings to certain geographical zones.
These features are useful if you're trying to build a service marketplace like TaskRabbit, as incorporating these features will enhance trust and convenience, making it easier for users to book home services. Explore tools like Checkr or Onfido and Google Maps API.
Health and wellness services marketplace
Specific features to consider:
Appointment booking: Must offer real-time booking with calendar integrations.
Insurance integration: Allows users to check if services are covered under their insurance.
Doctor profiles and ratings: Detailed profiles including qualifications, specialties, patient reviews, and ratings.
Thinking of building a marketplace like Zocdoc? A platform like this benefits from integration with health insurance databases and a robust appointment scheduling feature for medical appointments. Explore tools like Calendly and Eligible.
Creative services marketplace
Specific features to consider:
Project galleries: Allows creative professionals to showcase their portfolios.
Contest features: Enables clients to run contests where multiple creatives submit their work based on a brief, and the best is chosen.
Feedback and revision tools: Tools for easy communication and iterations on creative work.
If you're building a creative services platform like 99designs, having robust galleries and interactive contest features will attract both creatives and clients looking for unique, custom-made designs. Explore tools like Squarespace and Airtable.
Educational services marketplace
Specific features to consider:
Course enrollment and management: Allows students to enrol in courses, track their progress, and manage their learning schedule.
Interactive learning tools: Includes features such as quizzes, interactive videos, and peer-to-peer discussion forums to enhance the learning experience.
Certification tracking: Enables learners to receive certificates upon course completion, which can be verified by employers.
Building a marketplace like Coursera involves integrating robust educational tools that facilitate a wide range of courses and certifications, making it essential for platforms that want to cater to lifelong learners and professionals seeking skills enhancement. Explore tools like Teachable or Thinkific and Badgr or Accredible.
Event planning services marketplace
Specific features to consider:
Event creation and ticketing: Enables organisers to create event listings, set ticket prices, and manage sales.
Venue booking: Features to help users find and book venues according to event requirements.
Participant management: Tools for managing attendee lists, sending updates, and handling check-ins.
For a marketplace like Eventbrite, features that streamline the organisation and ticketing of events are crucial. These platforms must offer comprehensive tools to manage every aspect of event planning, from the initial creation to participant check-in at the venue. Explore tools like Universe and Trello.
Auction-based marketplaces
Customer features:
Live auction streaming: Participate in auctions in real-time from anywhere.
Bidder history and alerts: Track past bids and receive notifications about auction statuses.
Secure payment options: Ensure reliable and secure handling of high-value transactions.
Watchlist and favourites: Allows customers to save and monitor preferred auction items.
Customer support: Provides assistance during and after auctions to resolve any issues.
Some tools that can be used to build these features: Streamable or Video Livestream, Merkeleon, 6Storage and Braintree Payments.
Platform features for sellers:
Auction management tools: Create and manage auction listings, including start times, duration, and reserve prices.
Bidder verification: Ensure that all participants are verified and qualified to bid.
Real-time bidding interface: Allows bidders to see instant updates and place bids in real time.
Analytics and reporting: Track auction performance, bidder activity, and financials.
Post-auction processing: Manage payments, delivery, and feedback after auction closure.
Some tools that can be used to build these features: Webflow, Airtable, RainWorx and Zapier.
Sotheby’s online auction platform incorporates tools for live auction streaming, real-time bidding, comprehensive bidder management, and robust scalability, making it a premier online marketplace website that provides a seamless experience for high-stake bidders around the globe. Their system ensures that every aspect of the auction, from cataloguing to final delivery, is handled effectively.
On-demand marketplaces
Customer features:
Instant booking: Allows customers to book services at the click of a button.
Location-based services: Shows services available based on the customer’s location.
Customer reviews and ratings: Enables customers to rate and review services.
Mobile app: Provides a mobile platform for accessing services on the go.
Secure payment gateway: Ensures safe and reliable transaction processing.
Some tools that can be used to build these features: AppSheet, Builder.ai, GoodBarber and Twilio.
Platform features for sellers:
Real-time booking and scheduling: Immediate booking capabilities for services with live updates.
Geolocation tracking: Connects customers with providers in their vicinity.
Service provider profiles: Detailed profiles with ratings, reviews, and service descriptions.
Dynamic pricing: Prices adjust based on demand, time, or special conditions.
Performance metrics: Track service provider success rates, customer satisfaction, and operational efficiency.
Some tools that can be used to build these features: Glide Apps Shoutem, Firebase and Stripe Payments.
Uber is an example of an on-demand marketplace which integrates real-time booking, geolocation tracking, dynamic pricing, and instant customer feedback. They manage a large scale operation that hinges on seamless customer and platform features supported by robust back-end systems.
Community-driven marketplaces
Customer features:
Interactive forums: Platforms where customers can discuss topics, share ideas, and give feedback.
User-generated content: Enable users to contribute content, which enriches the community experience.
Personalisation: Customised user experiences based on interests, interactions, and behaviour within the community.
Rewards and recognition programs: Incentivise participation and recognize valuable community contributions.
Social sharing integrations: Easy sharing of community content to external social media platforms.
Some tools that can be used to build these features: Kajabi, Mobilize, Disciple and Hootsuite.
Platform features for sellers:
Community engagement tools: Features to foster interaction such as forums, polls, and live chat.
Content management systems: Manage and moderate user-generated content.
Member profiles: Customizable profiles that can display member activities, contributions, and reputation.
Event management: Tools to create and promote community events or meetups.
Analytics and feedback systems: Insight into community engagement metrics and member feedback.
Some tools that can be used to build these features: Trello or Asana, Mighty Networks, Vanilla Forums and Discourse.
Reddit exemplifies a community-driven marketplace where users drive the content and discussion across myriad topics. The platform supports user-generated content, member profiles, and community moderation tools, allowing for a rich and engaged community experience.
Subscription-based marketplaces
Customer features:
Flexible subscription options: Various plans and tiers to fit different needs and budgets.
Easy subscription updates: Simple processes for upgrading, downgrading, or cancelling subscriptions.
Exclusive content access: Access to premium content or features that are not available to non-subscribers.
Account management dashboard: Personal dashboard for managing subscription details and viewing usage history.
Notifications and alerts: Automated reminders about subscription renewals or changes in terms.
Some tools that can be used to build these features: Squarespace, Intercom, Adalo, Cratejoy and PayWhirl.
Platform features for sellers:
Subscription management: Tools to create and manage various subscription plans and features.
Recurring payment processing: Automated systems to handle recurring billing and subscription renewals.
Customer retention tools: Strategies and programs to reduce churn and retain subscribers.
Analytics and reporting: Insights into subscriber behaviour, churn rates, and revenue metrics.
Access control: Manage subscriber access to exclusive content or features based on their subscription level.
Some tools that can be used to build these features: Chargebee or Recurly, Baremetrics or ChartMogul, Memberful, Subbly and Zapier.
Netflix uses a subscription-based model that offers multiple subscription tiers with different content access privileges. They manage millions of subscribers worldwide with tools for easy subscription updates, exclusive content access, and a personalised viewing experience. Analytics and customer retention tools help Netflix maintain high engagement and low churn rates.
Final words
As we've explored the diverse array of features necessary for building successful marketplaces, it's clear that understanding and implementing the right features is crucial to creating a platform that meets the needs of both sellers and buyers. Before diving deep into full-scale development, we recommend starting with a Minimum Viable Product (MVP). This will allow you to test critical features with your target audience, gather feedback, and understand what truly resonates with your users. This approach not only minimises initial costs but also provides valuable insights that can drive the iterative development of your marketplace.
To effectively position your online marketplace and stay ahead of the competition, leveraging tools and resources that provide insight into competitor activities is key. Here are a few tools and applications that can help you monitor what others in your niche are doing and how you can differentiate your marketplace:
Crunchbase: Use Crunchbase to stay updated on funding news, key product launches, and strategic moves by competitors in the marketplace space. This information can help you identify trends and opportunities.
AppAnnie: For digital and mobile-focused marketplaces, AppAnnie offers comprehensive app analytics and market data that can help you understand competitive dynamics and user preferences.
SEMrush or Ahrefs: These tools are invaluable for analysing your competitors' online presence, from SEO strategies to content marketing effectiveness.
BuiltWith: Discover what technologies other marketplaces are using with BuiltWith. Knowing the tech stack of your competitors can provide insights into how they're building and scaling their features.
UserTesting: When you're ready to test your MVP, UserTesting can provide real user feedback on usability and feature set. This direct input is valuable when iterating and improving your marketplace.
TechCrunch and other tech news platforms: Keeping an eye on publications like TechCrunch can help you stay informed about the latest developments in the tech and startup world, including breakthroughs in marketplace technology and new competitive entrants.
By combining a strategic approach to feature development, you can more effectively tailor your marketplace to meet the specific needs of your audience. Remember, the goal is to build a platform that not only functions efficiently but also engages your users and stands out in a crowded market. Start small with an MVP, iterate based on user feedback, and continuously refine your offering to scale your marketplace into a dominant player in the industry.