Starting a marketplace app involves identifying a niche, validating demand, building a Minimum Viable Product (MVP) with core features like user profiles and payments, and solving the chicken-and-egg problem by onboarding sellers first. Key steps include choosing a technology stack (custom, no-code, or specialized tools like Sharetribe), designing a secure user experience, and launching to a small, focused group to iterate quickly.
Yes, marketplaces can be extremely profitable when done right. Businesses that successfully leverage their platform to connect buyers and sellers can generate revenue from both sides of the transaction and benefit from the economy of scale in their services.
An app with 1,000 downloads typically makes very little, often under $10 to $50 per month, as revenue depends heavily on active users, engagement, and monetization (ads, in-app purchases, subscriptions), with low engagement yielding near-zero income, while highly niche, engaging apps might see a few dollars daily. The actual earnings vary drastically, with some developers reporting only $30 from nearly 1,000 downloads in a week, highlighting that downloads alone don't equal money.
Brian Rothenberg - How To Build & Scale a Marketplace from $0 to Billions
What are the 4 types of marketplace?
There are primarily four types of marketplaces: B2C (Business-to-Consumer), where businesses sell to individual consumers; B2B (Business-to-Business), where transactions occur between businesses; C2C (Consumer-to-Consumer), enabling consumers to sell to each other; and M2M (Machine-to-Machine), which involves exchanges ...
How much does it cost to set up an online marketplace?
Core features for an online marketplace. To know how much it costs to build an online marketplace, you must outline what functionality you want to include in your solution. Based on the features, marketplace price typically ranges between $40,000 and $80,000, reaching $100,000 - $150,000 for enhanced marketplaces.
Creating an app for free and making money out of it is possible, even for people who don't have any coding skills. There are low code platforms that use AI to automatically generate the code that you need, and from there you can start monetizing your app through advertising, in-app purchases or affiliate marketing.
What's the difference between a platform and a marketplace?
The most significant difference lies in the type of interaction they facilitate. Marketplaces are primarily transactional, facilitating buying and selling. Platforms, however, enable a wider range of interactions, from transactions to content sharing to networking and more.
If you've got a complex idea and opt to have an agency build your app, your costs can easily exceed $100,000. A cheaper option is to sign up with Adalo, a no-code mobile app-building platform that doesn't require any coding or technical skill, and build your app yourself. You can get started with Adalo for $36/month.
Selling on Facebook Marketplace is an excellent way to earn extra money, whether you're decluttering or looking for a side hustle. By following the steps outlined in this guide, from setting up your listings to communicating with buyers and ensuring your safety, you'll be well on your way to Marketplace success.
From a $100 sale, Shopify typically takes around $3.20 on the Basic plan if you use Shopify Payments, calculated as 2.9% ($2.90) plus a $0.30 fixed fee, but this can increase to $5.00 or more if you use a third-party gateway like PayPal due to additional transaction fees, varying by your plan and payment method.
Cost by marketplace type: Simple MVP: Up to $2,000; includes basic listings, cart, and payments. Moderately complex: $2,000–$10,000; adds features like reviews, seller ratings, and inventory management. Enterprise-level: $300,000+; for platforms like Amazon or eBay with advanced analytics, mobile apps, and logistics.
Selling on marketplaces is a powerful way for brands to reach new customers, increase visibility, and drive revenue. However, profitability remains a challenge due to fees, competition, and pricing dynamics. As a brand, you need to balance competitive pricing with margin protection to ensure sustainable success.
Content, community, and commerce (also known as the 3 C's) are the building blocks of a successful e-commerce site. Content builds a community that establishes credibility to generates sales. Consumers also rely on these three factors when making purchasing decisions.
