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Marketplace Infrastructure
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November 19, 2024

Best Marketplace Software to Build a Multi-Vendor Marketplace (2025)

Nicole Kahansky
Nicole Kahansky
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To launch a successful marketplace, you need the right technology. But how do you choose the best marketplace software? 

The multi-vendor marketplace may be simple in concept, but its execution is much more complex than that of a single-vendor store. An assortment of merchants means lots more moving pieces, and the right marketplace tools are critical for smooth operations.  

Given the complexity of marketplace operations, there’s a wide range of marketplace software to consider adopting. Marketplace software can include a multi-vendor platform, payment solutions, marketing tools, and more. Not sure where to start? You’ve come to the right place. 

In this article, we’ll cover: 

But first, a few definitions to make sure we're all on the same page.

What is a multi-vendor marketplace?

What are we talking about when we say “multi vendor marketplace”? A multi-vendor marketplace is an online platform where many sellers can offer their products or services. Think of it like a big online mall. Each seller has their own shop, but they all share the same website. Buyers can browse and buy from different sellers in one place. The most famous example of a multi-vendor marketplace is Amazon.

Multi-vendor marketplaces provide a great experience for buyers because they can shop from multiple vendors on one website. It's great for sellers because they can reach more customers. It's a win-win for everyone!

What is marketplace software? 

Multi-vendor marketplace software is the technology that powers a marketplace business.  As one ecommerce director we interviewed put it, “The right marketplace website software transforms complex processes, making marketplaces more accessible than ever.” 

Historically, businesses needed to build their marketplaces from scratch — taking many years and boatloads of money to get off the ground. This is no longer the case. Thanks to online marketplace platforms like Nautical Commerce, startups and small teams can launch marketplaces in weeks. The industry has evolved from requiring custom development to offering robust marketplace tools that streamline launching and managing online markets.

Now, anyone can realize their marketplace vision with the right tech stack. 

Build vs. Buy: What's the Best Approach for Marketplace Software?

When creating a marketplace, you face a choice: build a custom marketplace platform or buy marketplace software. Each option has unique benefits.

Buying Ready-to-Use Marketplace Software

Buying marketplace software like Nautical means using technology that’s set up and ready. This is often best for companies that need to launch fast and can't spend years on custom development. The best marketplace software depends on your specific needs.  But no matter your objectives, the pros of out-of-the-box software also include regular updates and support. By buying, you get a stable platform and can focus on growing your business and improving the customer experience. This path works well for most companies.

Building a Custom Marketplace Platform

Building a custom marketplace gives you granular control over everything. This is a good option for large companies with specific needs that ready-made software can’t meet. However, building takes more time and requires a large budget for development and ongoing maintenance. You’ll also need a skilled team to create and manage the technology. A custom build allows flexibility but needs more resources and has greater risks.

Which Path Is Right for You?

Think about your company's complexity, timeline, and budget. Buying marketplace software lets you launch faster on top of proven infrastructure. Building gives you freedom but needs a strong commitment. For many, the “buy” option offers the best balance of speed, cost, and function. Plus, most of the marketplace technology in this list offers a lot of customizability.

Top marketplace software to add to your tech stack

Like anything, marketplace software isn’t one-size-fits-all. Specific marketplace software or technologies depend on the operational needs, strategic objectives, and desired outcomes. 

In this article, we've picked the best marketplace software from different categories. These include operations, marketing, customer support, payments, taxes, and logistics. Everything you need to run a successful marketplace.

Best marketplace platform for operations

Nautical Commerce

Example of what Nautical's marketplace software looks like

Nautical is the best marketplace software for building a multi-vendor marketplace. It helps businesses launch their marketplace quickly and easily. With Nautical, you can manage everything from product discovery to vendor payouts in one place. This makes it simple to keep track of all the moving parts.

The platform features an intuitive user interface, making it easy to use for non-technical users. You can build and launch your marketplace in less than 90 days. Everything is also customizable, allowing you to create a unique marketplace that meets your business needs.

With Nautical's marketplace platform you can onboard vendors, customize agreements, and integrate with a reliable payment gateway to process payments all in one place. Sellers get access to their own dashboard to list products, manage orders, and track inventory with ease. Buyers enjoy a smooth experience with easy sign-up, product search, and secure checkout. Nautical's platform is designed to help you succeed, whether you're building a B2B or B2C marketplace. It's affordable and scalable, making it accessible to all founders.

Why we love it: We developed Nautical Commerce to fill the gap that existed for people trying to launch a marketplace. It’s an end-to-end marketplace platform (no underlying commerce platform required) that’s specifically designed for marketplaces. 

Nautical is also great at working with other tools. It makes it easy to connect with all of the other best online marketplace software.

Best for:

  • Startups and midsize businesses looking to launch a physical goods marketplace.
  • B2C marketplaces: Building a multi vendor B2C marketplace used to require stitching together multiple ecommerce platforms. Nautical's all-in-one solution is the best marketplace platform for launching multi vendor B2C marketplaces that can scale.
  • B2B marketplaces: Nautical is the best marketplace platform for building a multi vendor B2B marketplace. You'll get all of the customization needed to handle the more complex nature of B2B ecommerce.

Startups and midsize businesses looking to launch a physical goods marketplace.

Pricing: Nautical has a variety of pricing plans available, starting at $187/month. Start a free trial.

Best marketplace software for marketing

Using the best marketplace tools for marketing makes a difference. An ecommerce leader shared, “leveraging marketplace software optimized for marketing has skyrocketed our visibility and user engagement, driving unprecedented traffic.” 

These tools not only enhance the marketplace's appeal but solidify its position in a competitive online space.

SendGrid: Email marketing software for marketplaces

Example of what SendGrid's marketplace software looks like

From checkout reminders to order updates to email marketing campaigns, it’s essential to have a reliable method of communication with your marketplace customers and suppliers. 

SendGrid is a reputable software for both transactional and marketing emails at scale. The software provides reliable email delivery to ensure your communications reach users promptly. Plus, its scalability can accommodate communication needs at any stage of growth. 

Why we love it: With their email API, you can seamlessly integrate SendGrid into whatever platform you use to power your marketplace business. Plus, get access to analytics to stay on top of what’s working and what’s not. 

Pricing: Depending on your stage and the primary function you’re using the tool for, prices range from free to $90/month. Plus, there’s custom pricing for the premier offering. 

Yotpo:  Social review software for marketplaces

Example of what Yotpo's marketplace software looks like

Yotpo helps businesses collect and leverage user-generated content to improve their marketing efforts. Marketplaces are built on trust, and one cannot underestimate the power of reviews and referrals. Yotpo allows marketplaces to collect and display reviews, and build loyalty programs. 

Why we love it: Displaying reviews on your website doesn’t only help build trust amongst buyers, but can also be leveraged as valuable feedback for your whole company. 

Pricing: Pricing ranges from $15/month to $269/month, depending on monthly order volume and required features. You can also get a custom plan for a more premium offering. 

Best marketplace software for payments

Using reliable software for marketplace payments is critical. Unlike a first-party ecommerce store, money isn’t only moving between two parties — it’s moving between three. Once the buyer pays the operator, sellers also need to know when and how they’ll receive their money. 

Getting payments and payouts right is essential to build trust with your marketplace’s stakeholders.

Stripe: Payments software for marketplaces

Example of what Stripe's marketplace software looks like

Stripe has quickly become the industry standard for ecommerce payments, and it’s no different for marketplaces. Stripe offers an easy, fast, and scalable way to provide payment optionality to customers. Plus, they have an offering specifically for marketplace payouts, Stripe Connect. Used by many well-known platforms, like DoorDash, Salesforce, and Mindbody, the tool enables operators to reliably payout vendors. 

Why we love it: Stripe Connect makes it easy to onboard sellers and gives operators and sellers visibility of how the money moves across the marketplace. 

Pricing: With Stripe, most of the money you’re charged is based on a per cent per transaction, depending on payment type and business requirements. 

Best marketplace software for taxes

In recent years, tax compliance has become increasingly burdensome for marketplace operators. In 2025, the IRS will require US operators to issue a Form 1099-K to every vendor who earns more than $600 in annual sales.

Also — thanks to a landmark 2018 Supreme Court ruling — marketplace operators are no longer only required to collect and remit sales taxes in states where they have a physical presence. Above certain thresholds, which vary from state to state, marketplace operators must collect and remit sales tax on all transactions.

Avalara: Tax compliance software for marketplaces

Example of what Avalara's marketplace software looks like

Managing taxes in a multi-vendor setup requires sophisticated marketplace website software. But don’t take our word for it. An ecommerce leader we interviewed emphasized, “navigating tax compliance is streamlined by utilizing marketplace software like Avalara, which is designed to tackle the complexities specific to online marketplaces.” 

Why we love it: Avalara knows marketplaces. With regulations continuing to change around how marketplaces pay taxes, it’s important to work with a business that’s staying up to date with the latest compliance requirements. Plus, they work across a wide range of marketplace types — from physical goods to social commerce. 

Pricing: For pricing options, you need to speak to a sales representative. 

Top marketplace software for logistics 

Since many multi-vendor marketplace operators don’t store or deliver any products or services, it’s easy to forget about shipping and logistics in the planning stage. However, marketplace operators need to make it frictionless for vendors to ship their products and services and share shipping details back to the marketplace.

ShipStation: Fulfillment software for marketplaces

Example of what shipstation's marketplace software looks like

ShipStation is a shipping solution that helps retailers organize, process, and fulfill their orders efficiently. The software allows your sellers to integrate with your marketplace platform so they can keep track of orders at every stage of the fulfillment process. Plus, it allows sellers to manage inventory accurately and allocate stock. 

Why we love it: It’s not difficult to imagine how orders can get out of hand for vendors selling through multiple channels. ShipStation enables vendors to streamline their order fulfillment across multiple selling platforms to ensure a better experience for everyone. 

Pricing: ShipStation has a wide range of plans available depending on needs, from $9.99/month to $229.99/month for enterprise. Plus, get a quote for high-volume shipping options.

Here: GIS software for marketplaces

Example of what Here's marketplace software looks like

As a leading provider in mapping, navigation, and geolocation technologies, HERE Technologies provides accurate and up-to-date location data essential for optimizing logistics operations. This software enables geolocation features so you can see maps of the fleet and warehouses on your marketplace and have visibility into routing, geocoding, and shipping status.

Why we love it: HERE Technologies' solutions are highly customizable and scalable, catering to the specific needs of marketplace logistics operations. Integration capabilities allow seamless collaboration with other systems, streamlining workflow efficiency. 

Pricing: You can get started for free and pay as you grow. For numbers, you need to reach out to their team. 

Best marketplace software for customer support

According to a study by Zendesk, more than half of consumers will switch to a competitor after only one bad customer service experience. Needless to say, it’s important to get customer service right — and hopefully the first time. 

With so many different preferences for modes of communication, it’s no longer enough to have one channel for customer support. Fortunately, there are tools to help manage your communication with customers so you don’t get bogged down juggling phone calls, emails, instant messages, and more. 

HelpScout: Customer support software for marketplaces

Example of what HelpScout's marketplace software looks like

HelpScout is a customer support software that allows you to have all your conversations on one unified platform. Its shared inbox consolidates inquiries from across channels, ensuring prompt and efficient responses. 

Collaboration tools enable support teams to coordinate efforts and provide consistent, accurate assistance. Automation features streamline repetitive tasks, leading to faster response times and smoother interactions. Plus, they have a knowledge base and reporting features to help you track key metrics. 

Why we love it: HelpScout is tried and true. It’s used by more than 12,000 businesses and has offerings for businesses small to large. 

Pricing: Plans range from $20/user/month to $65/user/month. You can also try a 15-day free trial. 

How to choose the best marketplace software for your business

Choosing the right marketplace software can set your business up for success. Here are 6 key steps to find the best fit for your needs.

1. Define your business goals

Start by identifying exactly what you need. What are your immediate goals for the marketplace? What's the vision for the future? Know your goals to make sure the software has the right features.

2. Look for core features

This is obvious, but needs to be said. Dig into the details about product features when you're evaluating marketplace software. Does the platform have the core functionality you need? Making a list of must-have vs nice-to-have features can help here.

3. Check for customization options

Some businesses need unique functions. Make sure the marketplace software can adapt to your needs. Some marketplace platforms like Nautical are completely customizable while others are more rigid and force you to do things “their way". If you want to learn more about what you can customize in Nautical, check out our API docs for developers.

4. Evaluate ease of use

A good platform is easy for everyone — vendors, buyers, and your team. Depending on the skill set of your team, ease of use will look different for everyone. For example, do you have developers on your team? Or will you need low-code solutions? 

5. Review Security and Compliance

Security is essential in a marketplace. Choose software that offers strong security features and meets industry standards. Your customers’ data and payments need protection.

6. Consider Costs and ROI

Budget is a big factor. Compare the costs of different platforms, including setup fees, monthly fees, and any added expenses. Balance cost with potential return on investment.

Ecommerce Platforms vs Marketplace Software

Ecommerce platforms and marketplace software serve different purposes. Ecommerce platforms are for one seller to sell products to customers. Marketplace software supports multiple sellers in one place. This allows vendors to reach more customers and gives buyers a choice of products from different sellers. Ecommerce platforms work well for single brands. Marketplace software is ideal for businesses that connect many sellers and buyers.

Building an effective marketplace toolkit 

Choosing the right marketplace technology at the start of your journey can save you a lot of time and headaches down the road. These tools address the unique complexities associated with running an online marketplace and also play a significant role in automating processes, enhancing user experience, and ensuring compliance with tax regulations. 

With so many marketplace tools at our fingertips, managing and launching an online marketplace has never been more accessible. 

A good place to begin? Your marketplace platform. Try a free trial of Nautical’s marketplace platform

Ready to Get Started?

Nautical Commerce dashboard graphic