How To Launch Successful E-commerce Marketplace: A Detailed Step-By-Step Guide

How many times have you considered launching your e-commerce marketplace app?

Are you still not sure about taking your business online with an e-commerce app like Amazon or Walmart?

This years old question has been answered by the shift in shopping dynamics during COVID-19 outbreak. The e-commerce market has seen light even in regions where it was never heard of and online purchase & delivery of products with on-demand e-commerce apps has become the new normal.

With changed consumer buying behavior, the time is right to ensure high sales and revenue with e-commerce mobile app development.


Table Of Contents

  1. Why You Should Start Selling Online?
  2. What Are Different Types Of e-Commerce Business Models?
  3. How To Earn High Revenue With e-Commerce Apps?
  4. Steps To Build e-Commerce App?
  5. What Are Features Of A Successful e-Commerce App?
  6. How Much Does It Cost To Build e-Commerce Marketplace App?


Why You Should Start Selling Online?

Launching e-commerce marketplace for your business requires investment. But rest assured, it offers high returns. Here are some compelling reasons to take your business online with e-commerce marketplace apps:

  • Consumers are shopping online: There are 5.27B mobile phone users in the world and 64% of smartphone users use their mobile devices to make online purchase. The online shopping trend has grown during the pandemic. As per reports, e-retail sales generated revenue worth $4.2T in the year 2020 reporting a growth of more than 25%.

So, bring your business where your customers are – ONLINE!

  • Startups benefit from mobile apps: While retail giants are switching to online sales, startups also benefit by building e-commerce apps. While we are discussing benefits of e-commerce apps for startups, 42% of small businesses or startups are already selling online.
  • Larger customer base: Taking your business online with e-commerce apps allows you to reach out to a global audience. A larger number of customers are able to find your business and access the products/services offered by you surpassing the location barriers. This leads to higher sales and increased revenue for your business.

Do you have an e-commerce idea? Let’s connect now!


What Are Different Types Of e-Commerce Business Models?

Before starting to sell online, it is important to understand the business model behind an e-commerce app. This is essential to ensure smooth operations & profitability of your e-commerce business. There are six different types of e-commerce business models.

Types of e-commerce business models:

  • Business-to-business (B2B)
  • Business-to-consumer (B2C)
  • Consumer-to-consumer (C2C)
  • Consumer-to-business (C2B)
  • Business-to-Administration (B2A)
  • Consumer-to-Administration (C2A)


Types Of e-Commerce Business Models

Different Types Of e-Commerce Business Models


Let’s discuss every e-commerce business model type in detail.

Business-to-business (B2B) e-commerce model: In case of B2B e-commerce business model, the e-commerce app helps one business in selling its products or services to another business. The seller is usually a service provider that helps in adding value to the business of the buyer company. This business model may be adopted by industries such as software development, HR services, customer service, etc. In B2B e-commerce model, the customer may be the end user or may use the product to add value to the services delivered to its customers.

What are benefits of B2B e-commerce?

  • Reach more customers
  • Higher & repetitive sales
  • High efficiency
  • Easy scalability
  • High brand awareness

Business-to-consumer (B2C) e-commerce model: What is B2C e-commerce model? It is the most common e-commerce model and mimics the traditional retail model where a business sells its products to consumers or end users of the products. It can be explained as online counterpart of traditional retail stores.

What are benefits of B2C e-commerce?

  • Lower price
  • Higher margin per sale
  • Wider reach
  • Control over brand
  • Increased accessibility

Consumer-to-consumer (C2C) e-commerce model: C2C business model aims at bringing the sellers and buyers closer to each other. It facilitates business between two private individuals, for example eBay business model that allows individuals to list their products on the e-commerce platform.

What are benefits of C2C e-commerce?

  • Overhead cost reduction
  • Global reach
  • Price flexibility
  • Higher profits
  • Efficiency in selling personal products

Consumer-to-business (C2B) e-commerce model: C2B e-commerce model is a new concept. In this e-commerce model, an individual sells its products or services to a business. Most common example of C2B e-commerce is freelance marketplace like UpWork.

What are benefits of C2B e-commerce?

  • Better market reach
  • Increasing demand
  • Improved sales
  • High flexibility

Business-to-administration (B2A) e-commerce model: B2A e-commerce business model is implied to businesses whose clientele comprises of government or public administration only. B2A e-commerce includes services such as commissioning, social security or protection, financial services, etc.

Consumer-to-administration (C2A) e-commerce model: C2A e-commerce business model implicates the financial transactions that are made by consumers towards the administration or government.

Choose your e-commerce model and launch a robust e-commerce platform. Let’s connect now!

How To Earn High Revenue With e-Commerce Apps- Types Of e-Commerce Revenue Models

Generating revenue is the core essence & purpose of launching every business. When launching an e-commerce business, you can choose from different types of revenue models as per your business requirements.

There are five different types of e-commerce revenue models:

  • Sales Revenue Model
  • Advertising Revenue Model
  • Subscription Revenue Model
  • Transaction Fee Revenue Model
  • Affiliate Revenue Model


Sales Revenue Model: Sales revenue model is the most commonly followed e-commerce revenue model. In this case, the seller lists the products or services online and generates revenue when a purchase is made by the customer. It allows the seller to offer competitive prices and reach out to a global audience. This revenue model removes the need for middle man or third party vendors in the supply chain.

Advertising Revenue Model: This is an indirect method of generating revenue by placing advertisements on your e-commerce platform. The income structure for advertising revenue model is based on Pay-per-Click (PPC) or Pay-per-Lead (PPL).

Subscription Revenue Model: This is a popular revenue model, for example Netflix, Amazon Prime, etc. In this revenue model, the businesses charge a subscription fees to the customers to allow them access to unlimited services. The subscribers are required to pay the fees at regular intervals in order to continue using the benefits.

Transaction Fee Revenue Model: Transaction fee revenue model is based on charging a transaction fees to the customer (may be a seller) for every transaction made using the platform. For example, Paytm charges the sellers a transaction fee for every payment received using the Paytm payment gateway.

Affiliate Revenue Model: This revenue model uses the concept of commission. Allow businesses to affiliate with your e-commerce platform to redirect leads to their website or help increase their sales. A commission is earned for every lead generated for the affiliated business.

Do you want to earn high revenue with e-commerce platform? Let’s connect now!


Steps To Build e-Commerce Marketplace App?

Launching your e-commerce marketplace app is a stepwise process. Thorough research and planning will help in ensuring smooth & timely launch of your e-commerce app. Here is a step-by-step plan to help you launch your e-commerce app:


e-Commerce App Development

e-Commerce App Development


Decide your niche: e-Commerce apps have deepened their roots in multiple industries ranging from on-demand food or grocery delivery, freelancing marketplaces, beauty, home services, taxi dispatch, etc. The choice of niche should be relevant to your business. This becomes easier if you already own a bricks and mortar business as that lays the foundation of your e-commerce app. In case, you are launching a startup via e-commerce app, thoroughly research the market to identify a profitable niche. Some factors you need to consider for identifying a profitable niche –

  • Target audience
  • Audience demographics
  • Demand & supply gap
  • Online spending trends
  • Competitor placements

Choose Basic Features: Market is brimming with e-commerce apps, so make sure that your e-commerce app offers comfort & convenience to attract users. Research about the features offered by other e-commerce apps in the market and then decide the features you want to offer in your e-commerce app. Some essential features you should include in your e-commerce app are:

  • Easy login & authentication features
  • Product catalogue with advanced search
  • Multiple payment gateway integrations
  • Easy ordering & tracking
  • Push notifications
  • Order & payment history
  • Product suggestions

Design & Development: The next step is to choose the design elements of your e-commerce app. Design elements should ensure easy navigation through the app and distinguish the keys or buttons clearly. Also choose the platforms that you would like to launch your e-commerce app on. This is a crucial step before starting the development of your e-commerce app and requires professional skills. An efficient alternative is to hire a professional e-commerce app development company. The mobile app development companies offer complete support and launch assistance.

Do you want to convert your idea into an e-commerce app? Let’s connect now!

What Are Features Of A Successful e-Commerce Marketplace Ap?

To stand out in the pool of e-commerce apps, your e-commerce app should include following key features:

  • Easy Registration: Your app should allow easy and quick registration & authentication for the users. An easy alternative is to allow one-click social media login for the users.
  • Multiple Payment Gateway Integration: Users may have different preferences for making payments. Some may prefer netbanking or credit card payments while others may look for digital wallets. So, make sure to offer multiple payment gateway integrations.
  • Push Notifications: Push notifications are one of the most important sales driving features of an e-commerce app. It helps in sending offers, deals and sales notifications for user acquisition.
  • Wishlist & Order History: Wishlist button is another must have feature for e-commerce apps. Offer this feature to help users bookmark their favorite product and return to purchase it. Order history is also an essential feature as it facilitates repeat purchases.
  • Easy Checkout: Easy payments & checkout options add to the convenience of the users and promote sales. Thus, make sure to offer convenient and on-click checkout and payment options to your users.

Some of the other important features of successful e-commerce apps include synchronization, easy navigation, product filters, rating & feedback, real time analytics, etc.

Want to know more about essential features of e-commerce apps. Let’s connect now!


How Much Does It Cost To Build e-Commerce Marketplace App?

The cost to develop e-commerce marketplace app is governed by many factors such as:

  • Wireframe
  • Design
  • Features
  • Platform compatibility

The initial development cost may range from $8000 to $20,000 depending upon the location of developers.

Code Brew Labs offers an affordable alternative as it offers a ready-to-use solution which can be customized to suit your unique business needs. As most of the solution is already written, it helps in lowering the development cost and take to market time.

Do you want to launch your e-commerce marketplace? Want an exact quote for e-commerce app development? Let’s connect now!


September 6, 2021



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