Marketplace Platform: Explanation, Examples, and Use Cases

When thinking about launching an onlinemarketplace, one of the first considerations is a marketplace platform. 

While historically, founders had to build marketplace technology from scratch, the rise of marketplace platforms makes it easier to start an online marketplace. 

This article explores the ins and outs of marketplace platforms and how to choose the best one for your business. 

What is a marketplace platform?

A marketplace platform is the software that underpins a marketplace. Its job is to be the technical foundation on which a marketplace is built and provide operators with the infrastructure for product listings, checkout, accounting, shipping, and logistics. 

While marketplace platforms refer to pre-built, configurable tools, they aren’t the only way to launch a marketplace. It’s also possible to build a marketplace from scratch or cobble together a patchwork of existing applications.

Before diving further into this article, take note of one important distinction: A marketplace in and of itself is often referred to as a platform. But this article refers to “marketplace platform” as the platform on which you build a marketplace business. 

Marketplace platforms vs. ecommerce platforms: key differences

New marketplace entrepreneurs often ask if they can build a marketplace on a traditional ecommerce platform like Shopify. The short answer is yes, but it won’t be easy. 

Platforms like Shopify are built for one seller. Ecommerce platforms are very efficient for single retailers with complete control over their product catalog, manufacturing, shipping, and logistics. However, they cannot coordinate multiple sellers, a critical functionality for marketplace operators. Turning a Shopify-like platform into a marketplace is like turning a motorboat into a cruise ship. It requires an incredible amount of technical development and customization. 

In the Marketplace Bootcamp lesson on technology, Bhavin Shah, the CTO of Float, identified a critical distinction between ecommerce and marketplace technology:

Marketplace technology isn’t just for you, it’s also for your sellers. 

Core features of a marketplace platform 

Marketplace platforms must facilitate all interactions buyers have with the tens, hundreds, or thousands of sellers on their website. Since marketplace operators sit in the middle of the transaction, marketplace platforms must be purpose-built to support the following:

• The seller experience: Seller onboarding, product catalog management, order notifications, shipping communications, a frictionless selling experience
  
  
• Multi-seller accounting and fintech: Multi-seller checkout, preferred payment methods, seller payouts, commissions, taxes, bookkeeping
  
  
• Multi-seller shipping and logistics: Warehouse and fulfillment triggers, shipping notifications, buyer communications, application integrations, returns

Types of marketplace platforms

Not all marketplace platforms work the same way. Now that you understand what a marketplace platform is let’s explore the differences between types of platforms. 

Full marketplace platforms

A full marketplace platform orchestrates all aspects of multi-vendor buying, selling, and delivery. Think of it as a central cockpit for your marketplace's operations. 

When you’re learning about full marketplace platforms, you’ll likely come across the terms “low code” solutions, “open API” architecture, and “headless” solutions. 

Low code marketplace platforms

Low code refers to software that requires minimal coding to adopt. These platforms are “opinionated,” meaning they are based on best practices and contain features common to all marketplaces. They tend to be more friendly for users who don’t want the hassle of custom coding or developer intervention.

API marketplace infrastructure 

Full marketplace platforms can be designed with pre-built connectors for third-party software, also known as APIs. Most marketplace platforms need to connect with software for product information management, customer relationship management, warehouse management, etc. APIs give your marketplace platform the ability and flexibility to talk to the other software.

Headless marketplace software

“Headless” solutions refer to software that separates the “head” from the “body.” The “head” is the frontend presentation layer, like a desktop website or mobile app. The “body” is the operational backend, the interface where you manage things like transactions and vendor listings.

Headless solutions allow businesses to create a custom presentation layer while taking advantage of the platform’s pre-built backend functionality. They’re a great option for deploying changes more rapidly, as you can make changes to the frontend without impacting the backend. 

🔵 For more common marketplace terms, refer to Nautical’s Glossary of Terms 🔵

Partial marketplace platforms

A partial marketplace platform refers to a marketplace built on top of an existing ecommerce platform. An ecommerce platform will have functionality for single-seller businesses but can be adapted into a marketplace by bolting on multi-vendor software.

The pro of a partial platform is that if you already have an ecommerce business, you don’t need to rip everything out to try augmenting your business with a marketplace. 

The cons are that:

• You still need to bolt multiple applications together — resulting in a more rigid and limited marketplace infrastructure.
• You have to create all integrations and update integrations as apps change

Marketplace platform cloud service models

Cloud service models provide different levels of control over marketplace infrastructure, business requirements, and IT resources. Understanding the differences between cloud service models is important because you need to know what aspects of cloud computing you’ll be responsible for vs. your marketplace platform vendor.

Infrastructure as a service (IaaS) marketplaces 

IaaS providers allow you to rent their resources, eliminating the need to manage your marketplace’s technical infrastructure. The main benefit of IaaS is that you don’t have to worry about server discs and firewalls. With IaaS, you must still manage your operating system, APIs, applications, and data. 

Who's it for? Businesses that need complete control over their infrastructure.

Platform as a service (PaaS) marketplaces 

PaaS providers manage everything but applications and data. This means you can still customize your applications without worrying about maintaining hardware, the operating system, or technical infrastructure. 

Who’s it for? Businesses that want to streamline application development.

Software as a service (SaaS) marketplaces 

SaaS is entirely plug-and-play, and is a very common model for marketplace platforms. SaaS providers manage everything, including applications and data. Customization, features, and extensibility are limited, but implementation is instant.

Who’s it for? Businesses that want ready-to-use applications with minimal management. 

14 Best marketplace platforms for 2025

In this next section, we will explore the 14 best marketplace platforms for 2025. These platforms all make it easy to launch an online marketplace. We'll cover the different reasons you might want to choose a particular marketplace platform over another.

Nautical Commerce: Best marketplace platform for modern merchants

Nautical Commerce is a marketplace platform built for founders who want to move fast — purpose-built for multi-vendor commerce.

Nautical’s end-to-end, no-code marketplace platform that lets you launch a marketplace without developers or an underlying commerce platform. You can take advantage of Nautical’s drag-and-drop storefront editor or customize the front-end experience to your unique needs with Nautical’s headless offering. 

Within the platform, you can connect to thousands of third-party software and apps through pre-built marketplace integrations, Zapier, or Nautical’s open API. 

Here are some examples of the functionality Nautical’s marketplace platform offers:

For sellers

• Seller onboarding: Sellers are automatically guided through clear steps to set up their accounts, upload products, and make their first sale.
• Seller dashboards: Sellers can view orders and fulfillment statuses, manage products, and access payout details all on one interface.
• Seller contract management: Operators can manage seller agreements or service level agreements and keep records through Nautical’s marketplace platform.
• Seller payouts: Nautical automatically calculates operator commissions and connects to reputable pay-out integrations out-of-the-box.
• Seller systems: Nautical can integrate with seller systems, including product ingestion, product information management, and shipping software.

For buyers

• Multi-vendor checkout: Buyers can check out from multiple vendors in one transaction.
• Product search: Nautical connects buyers to products via an intelligent keyword search.
• Order updates: When a seller fulfills an order, Nautical automatically communicates shipment information to the buyer.
• Low-code storefront: Build a storefront effortlessly with Nautical’s drag-and-drop editor. 

For merchants

• Product catalog management: Categorize thousands of product listings to ensure consistent product information across all sellers and integrate with product information management systems.
• Accounting: Nautical has double entry bookkeeping and connects out-of-the-box with fintech that manages payments, payouts, and complex marketplace tax requirements.

Learn more about Nautical Commerce‍

Nautical provides both the operational backend and the low-code storefront for your marketplace so you can focus your time and energy on growing your business. It’s a marketplace platform that’s best for founders looking to launch a new marketplace quickly without sacrificing the ability to scale in the future. Learn more

Shopify with multi-vendor apps

Shopify is an ecommerce platform, not a marketplace platform. But with third-party apps, businesses can turn a Shopify store into a multi-vendor marketplace.

These apps let sellers create accounts, list products, and manage their own sales. Some also include automated payouts, commission tracking, and order management. Popular marketplace apps for Shopify include:

• Multi Vendor Marketplace by Webkul: One of the most widely used Shopify marketplace solutions.
• Marketcube: A cloud-based multi-vendor tool with automated payments.
• VendorDen: A simple marketplace app with commission tracking and seller dashboards.

Since Shopify wasn’t designed for marketplaces, these apps work as add-ons. That means more setup, customization, and limitations compared to a dedicated marketplace platform.

Pros

• Easy to set up for existing Shopify users
• Large app ecosystem for extending functionality
• Built-in Shopify payment processing and security
• Low-cost entry compared to enterprise marketplace solutions

Cons

• Requires third-party apps to enable marketplace features, like multi-vendor checkout
• Limited customization compared to standalone marketplace platforms
• Can get expensive with app fees and Shopify’s transaction fees
• Not ideal for large-scale marketplaces with complex seller needs

Best for small Shopify stores

Shopify with multi-vendor apps is best for small businesses or solo entrepreneurs. It works well for those who already use Shopify and want to add marketplace features without building a new platform.

This setup is a good fit for simple marketplaces with a small number of vendors. But for serious marketplace businesses that plan to scale, a dedicated platform like Nautical is a better long-term option.

Shopify pricing

Shopify pricing starts at $39/month for the Basic plan. The Advanced plan costs $399/month, offering lower transaction fees and more reporting tools.

Multi-vendor apps have separate costs, typically ranging from $10 to $200/month, depending on features. Shopify also takes a transaction fee unless you use Shopify Payments.

Adobe Commerce (Magento) with marketplace extensions

Adobe Commerce, formerly Magento, is a powerful ecommerce platform. It wasn’t built for marketplaces, but extensions can add multi-vendor features. These extensions let sellers create accounts, list products, and manage orders. Some also include commission tracking, automated payouts, and shipping tools.

Popular extensions include Webkul’s Multi-Vendor Marketplace, CedCommerce Marketplace, and Vnecoms Marketplace. These tools add marketplace functionality, but it needs setup and customization. Unlike Shopify, Adobe Commerce is open-source, meaning businesses can change the code to fit their needs.

This flexibility comes with trade-offs. Running a marketplace on Adobe Commerce requires technical expertise. Businesses often need developers to install, configure, and maintain the platform.

Pros

• Customizable with full control over features
• Large marketplace extension ecosystem
• No mandatory transaction fees
• Strong performance and scalability for large stores

Cons

• Requires in-house developers or an agency for setup and maintenance
• Steep learning curve compared to plug-and-play solutions
• Hosting, extensions, and support costs can add up
• It take more effort to integrate sellers and automate processes

Best for established businesses

Adobe Commerce with marketplace extensions is best for businesses with technical resources. It works well for companies that already use Magento who need a customizable marketplace. But it’s not the best choice for founders looking for an out-of-the-box solution.

Magento pricing

Adobe Commerce pricing depends on business size and needs. The open-source version is free, but hosting and development costs can be significant. The cloud-hosted Adobe Commerce edition starts at around $22,000 per year. Marketplace extensions cost extra, ranging from $100 to $2,000, plus ongoing development costs.

CS-Cart Multi-Vendor

CS-Cart Multi-Vendor is a standalone marketplace platform. It was built specifically for multi-vendor e-commerce, so it doesn’t require extra plugins or extensions. Businesses get a ready-to-use solution with built-in tools.

CS-Cart supports unlimited vendors. Each seller gets their own dashboard to manage products, track sales, and fulfill orders. The platform also includes marketing tools.

Pros

• All-in-one marketplace solution with no extra plugins needed
• One-time purchase option instead of monthly fees
• Unlimited vendors and product listings
• Built-in vendor management and order automation

Cons

• Self-hosted, so businesses must handle security, updates, and hosting
• Limited third-party integrations compared to bigger platforms
• Fewer advanced enterprise features than Mirakl or Adobe Commerce
• UI feels outdated compared to newer marketplace solutions
• Customer support has extra costs

Best for small to medium-sized B2C businesses

CS-Cart Multi-Vendor works best for businesses that need an affordable marketplace solution. It’s ideal for small to mid-sized marketplaces that don’t need complex integrations or custom development. But it may not be the best fit for businesses looking to scale fast or integrate with enterprise systems.

CS-Cart pricing

CS-Cart Multi-Vendor offers a one-year subscription starting at $1,319. The higher-tier plans, like Multi-Vendor Ultimate goes up to $3,299 for the year. Businesses also need to pay for hosting, security, and potential development work.

Webkul for BigCommerce

Webkul’s Multi-Vendor Marketplace app adds marketplace functionality to BigCommerce. It lets businesses turn their existing BigCommerce store into a multi-vendor platform. Sellers can register, list products, and manage their own sales.

Webkul’s app is a quick way to add marketplace features, but, like most plug-ins, it has limitations. Since it’s a third-party extension, businesses must work within BigCommerce’s ecosystem. Advanced customization will need extra development.

Pros

• Easy integration for existing BigCommerce users
• No need for a separate marketplace platform
• Supports automated vendor payouts and commission tracking
• Works with BigCommerce’s built-in payment and shipping options

Cons

• Limited flexibility compared to standalone marketplace platforms
• Scaling with many vendors may lead to performance issues
• Some features require more Webkul add-ons

Best for existing BigCommerce users

Webkul for BigCommerce is best for retailers already using BigCommerce. It’s a good option for those who need basic multi-vendor functionality without switching platforms. But for businesses planning a large-scale marketplace, a dedicated marketplace solution may be a better fit.

Webkul pricing

Webkul’s Multi-Vendor Marketplace app for BigCommerce starts at $10/month. Additional features, such as vendor subscriptions, auction tools, or booking systems, might require extra add-ons. Businesses also need to factor in BigCommerce’s monthly subscription fees, which start at $39/month for the Standard plan.

Yo!Kart

Yo!Kart is a self-hosted marketplace platform. It comes with built-in multi-vendor tools, so there’s no need for extra plugins. Businesses get seller dashboards, order management, and automated payments.

It supports both product and service-based marketplaces. Vendors can list items, track sales, and manage fulfillment. The platform also includes features like discount management, abandoned cart recovery, and multi-language support.

Customization is possible but requires coding. Yo!Kart offers development services at an additional cost per hour for businesses that need changes. Since it’s self-hosted, companies must handle security, updates, and server management.

Pros

• Complete marketplace solution with no third-party apps needed
• One-time payment instead of monthly fees
• Supports both product and service marketplaces
• Multi-language and multi-currency support

Cons

• Requires hosting and technical setup
• Custom changes need developer support at an additional cost
• Vendor experience isn’t as polished as larger platforms
• No free version, and demo access is limited

Best for mid-sized businesses

Yo!Kart is best for mid-sized businesses that want a standalone marketplace platform. It works well for companies that don’t want ongoing software fees. But it’s not ideal for businesses that need deep integrations or enterprise-level features.

Yo!Kart pricing

Yo!Kart’s basic plan costs $499 as a one-time payment. The Advanced plan costs $6,249 and includes more features. An Enterprise plan is available for large businesses with custom needs. Hosting and security costs are extra.

Arcadier

Arcadier is a cloud-based marketplace platform. It works for product, service, rental, and B2B marketplaces. Businesses can launch quick without coding. The platform includes seller onboarding, order management, and payment processing.

Arcadier offers built-in templates for different marketplace types. Vendors get dashboards to manage listings, track orders, and set prices. Buyers can search, filter, and purchase from multiple sellers in one transaction.

Customization is limited. Businesses can tweak branding and basic settings. But you can’t change core functionality without developer help. Since it’s cloud-based, Arcadier handles hosting, security, and updates.

Pros

• No coding required to launch
• Supports multiple marketplace types
• Built-in payment and order management
• Hosting and security included

Cons

• Limited customization without developer support
• Fewer integrations than larger platforms
• Some advanced features need higher-tier plans
• Less control compared to self-hosted solutions

Best for niche marketplaces

Arcadier is best for businesses building niche marketplaces. It works well for rentals, services, and specialty products. It’s a good fit for founders who want a simple, low-maintenance platform without handling servers or software updates.

Arcadier pricing

Arcadier’s basic plan starts at $69/month. Higher-tier plans unlock more features, with enterprise pricing available on request. Businesses should also budget for transaction fees and possible custom development costs.

Marketplacer

Marketplacer is a marketplace platform built for large businesses. It helps retailers, brands, and enterprises add third-party sellers to their stores. Businesses can manage vendors, track orders, and handle payments from one dashboard.

The platform supports both first-party and third-party sales. Companies can sell their own products while allowing vendors to list on the same site. Marketplacer also includes tools to promote products, manage subscriptions, and streamline logistics.

Customization requires developer work. The platform is flexible but not plug-and-play. Businesses need technical resources to set up integrations and manage complex workflows.

Pros

• Supports first-party and third-party sales
• Strong vendor management and reporting tools
• Scalable for high transaction volumes
• Access to a seller community

Cons

• Requires developers for setup and customization
• High cost compared to smaller marketplace solutions
• Enterprise features may be overkill for simpler marketplaces
• Must be used with a commerce platform

Best for large retail businesses

Marketplacer is best for large businesses that already run a marketplace. It works well for enterprises that need advanced vendor management and high transaction volume. It’s not a good fit for small businesses or startups with limited budgets.

Marketplacer pricing

Marketplacer does not list public pricing, but they charge a monthly fee, a percent of GMV, and a set-up cost. Actual costs depend on business size, transaction volume, and feature needs. Interested businesses must contact Marketplacer for a custom quote.

PrestaHero Multi-Vendor Addon for PrestaShop

PrestaHero’s multi-vendor addon turns a PrestaShop store into a marketplace. Sellers can list products, manage orders, and receive payments. Marketplace owners set commission rates and control vendor access.

The addon works inside the PrestaShop ecosystem. Businesses get access to PrestaShop’s themes, plugins, and payment options. The marketplace runs on the same backend as a regular PrestaShop store.

Customization is possible but limited by PrestaShop’s framework. Businesses that need deep modifications may require developer support. Since it’s an addon, performance depends on the hosting and setup of the main PrestaShop store.

Pros

• Adds marketplace features to an existing PrestaShop store
• No need to switch to a separate platform
• Supports vendor commissions and automated payouts
• Works with PrestaShop’s existing plugins and payment gateways

Cons

• Requires PrestaShop to function
• Limited scalability compared to dedicated marketplace platforms
• Performance depends on hosting and store setup
• Customization may require developer help

Best for PrestaShop users

This addon is best for businesses already using PrestaShop. It’s a good option for store owners who want to add marketplace features without leaving the platform. But it may not be the best choice for businesses planning a large-scale marketplace.

PrestaHero pricing

The PrestaHero multi-vendor addon costs $250 as a one-time payment. Businesses also need to pay for PrestaShop hosting, extensions, and possible development work.

Sharetribe

Sharetribe is a no-code marketplace platform. It helps businesses launch quickly without developers. Users can create a marketplace for products, services, or rentals.

The platform includes built-in seller tools. Vendors can list items, manage orders, and process payments. Buyers get a simple, mobile-friendly experience. Sharetribe also supports custom branding and domain setup.

Pros

• No coding required to launch
• Fast setup with hosting and security included
• Works for product, service, and rental marketplaces
• Subscription-based pricing with no large upfront cost

Cons

• Sellers can’t upload products in bulk
• Doesn’t support out-of-the-box multi-vendor shopping cart
• Limited integration capabilities on lower-tier plans
• Transaction fees apply on lower-tier plans

Best for simple, P2P and service marketplaces

Sharetribe is best for small P2P or services marketplaces. It works well for founders who want a fast, affordable launch. But it’s not as ideal for businesses that need advanced features or custom integrations.

Sharetribe pricing

Sharetribe’s plans range from $99/month-$299/month on a yearly commitment. Transaction fees also apply.

Dokan WooCommerce Plugin

Dokan turns a WooCommerce store into a multi-vendor marketplace. It’s a WordPress plugin that adds seller dashboards, commission tracking, and order management. Businesses can manage vendors while sellers control their own products.

The plugin integrates with WooCommerce’s payment gateways and shipping tools. Vendors get separate storefronts with customizable profiles. Buyers can purchase from multiple sellers in a single transaction.

Customization depends on WordPress and WooCommerce. Businesses can add extra plugins to expand features, but performance depends on hosting quality. Scaling may require developer support.

Pros

• Works inside WooCommerce, no need for a new platform
• Supports vendor payouts and commission structures
• Compatible with many WordPress themes and plugins
• Free version available with basic features

Cons

• Requires WooCommerce and WordPress to function
• Can slow down with too many vendors or plugins
• Advanced features locked behind paid plans
• Needs good hosting to handle marketplace traffic

Best for WordPress users

Dokan is best for businesses already using WordPress and WooCommerce. It’s a good option for store owners who want to add marketplace features without switching platforms. But it’s not ideal for large-scale marketplaces that need advanced automation or deep integrations.

Dokan WooCommerce pricing

Dokan has a free version with limited features. Paid plans start at $149/year for the Starter plan. The Enterprise plan costs $999/year and includes advanced features. Businesses also need to budget for WooCommerce hosting and extra plugins.

X-Cart Multi-Vendor Marketplace

X-Cart is a self-hosted e-commerce platform. Its multi-vendor version turns a store into a full marketplace. Businesses get tools to manage sellers, track orders, and handle payouts.

Sellers get their own dashboards. They can list products, set prices, and manage inventory. Buyers can shop from multiple vendors in one transaction. X-Cart also supports different commission models and automated revenue sharing.

Customization is flexible but requires coding. Businesses need developers for deep changes and integrations. Since X-Cart is self-hosted, companies must also manage security, updates, and hosting.

Pros

• Full marketplace solution with no extra plugins needed
• Supports various commission structures
• No transaction fees
• Customizable for unique business needs

Cons

• Requires technical knowledge to set up and maintain
• No built-in hosting, security, or updates
• Can be expensive compared to cloud-based solutions
• Fewer third-party integrations than Shopify or WooCommerce

Best for self-hosted setups

X-Cart is best for businesses that want a self-hosted marketplace. It works well for companies that need full control over customization and scalability. But it’s not a good fit for founders looking for a plug-and-play solution.

X-Cart pricing

X-Cart’s Multi-Vendor plan starts at $499/month. Higher-tier plans offer more features. Businesses must also pay for hosting, security, and developer support.

Mirakl

Mirakl is an enterprise-grade marketplace platform. It powers large-scale marketplaces for retailers, B2B companies, and manufacturers. Businesses can onboard sellers, automate transactions, and manage logistics from one system.

The platform supports first-party and third-party sales. Operators can sell their own products while allowing vendors to list on the same site. Mirakl also offers AI-driven tools for catalog management, pricing, and fraud detection.

Customization is extensive but requires developers. Mirakl integrates with ERP, CRM, and payment systems, making it ideal for complex businesses. The setup process is long and resource-intensive.

Pros

• Built for enterprise-level marketplaces
• Strong automation and AI-powered tools
• Scalable for high transaction volumes
• Deep integrations with business systems

Cons

• High setup and maintenance costs
• Requires technical expertise for implementation
• Not suitable for small businesses or startups
• Long onboarding process compared to plug-and-play solutions

Best for large enterprises

Mirakl is best for large businesses with complex marketplace needs. It works well for companies that require advanced automation and integrations. It’s not a fit for small businesses or founders looking for a quick launch.

Mirakl pricing

Mirakl does not list public pricing. Costs depend on marketplace size, transaction volume, and custom integrations. Businesses must contact Mirakl for a custom quote.

MultiMerch for OpenCart

MultiMerch is a marketplace extension for OpenCart. It adds multi-vendor features to an existing OpenCart store.  Sellers can create accounts, list products on the platform, and manage orders. Marketplace owners control commission rates, payouts, and vendor approvals.

The extension integrates with OpenCart’s payment and shipping options. It supports automated commission tracking and revenue sharing. Vendors get dashboards to track sales and manage inventory.

Customization depends on OpenCart’s framework. Businesses can modify features, but deep changes require coding. Performance and scalability rely on hosting quality.

Pros

• Adds marketplace features to an OpenCart store
• No need for a separate platform
• Supports vendor commissions and automated payouts
• Works with OpenCart’s themes and plugins

Cons

• Requires OpenCart to function
• Limited scalability compared to standalone marketplace platforms
• Performance depends on hosting and store setup
• Advanced features may need developer support

Best for OpenCart users

MultiMerch is best for businesses already using OpenCart. It’s a good option for store owners who want to add marketplace features without switching platforms. But it may not be the best choice for scaling a high-volume marketplace.

MultiMerch pricing

MultiMerch pricing depends on the license and features. Businesses should also budget for OpenCart hosting, extensions, and possible development costs.

When to use a marketplace platform

A marketplace platform might not be the approach for every business, but it is the best approach for most. Below are some situations that call for a marketplace platform.

Testing an MVP for marketplace validation

Are you 100% confident your marketplace has legs? Getting your marketplace into the hands of users will help you validate that there’s a market for your marketplace — or send you back to the drawing board, like Olivia Mihaljevic, founder of LIVD. 

In her episode of Operation Marketplace, she described the struggle of relinquishing her original vision. 

“A really hard point to get to is where you see a little bit of traction, and you're like, okay, do I just need to keep grinding? It’s challenging because you spend a lot of effort and energy building something. And then you have to start again.”

The best and most cost-effectective way to test a marketplace without wasting effort, time, and expenses is to build a minimum viable product on a marketplace platform. A marketplace platform allows you to launch and validate, or pivot, quickly and without the exorbitant costs or resources of building. 

How to build a marketplace MVP
‍
‍The marketplace you envision isn’t always the one you end up building. Before pouring extensive resources and time into your marketplace, start with a minimum viable product to validate the idea. Read more 

Limited technical support

Whether or not you have a technical team will impact the marketplace technology you choose. If your technology and technical know-how are mismatched, it will result in a lot of frustration. No one knows this better than Chamfr’s founder Julie Schulte. In Julie’s episode of Operation Marketplace, she described the importance of technical help as a non-technical founder:

“[Tech] is like trying to speak the same language when you're from completely different ends.  Tech is a language, and it's a communication style. The whole agile process is something to be learned in and of itself. So, bless [our marketplace developers’] souls.”

For start-up marketplaces that don’t have the budget to hire or contract technical staff, low-code marketplace platforms are a fantastic tool to get started. On top of providing a solution that doesn’t require coding expertise, they often provide technical support and a customer success contact with your purchase. These resources are not only well-versed in the platform but also in marketplace best practices. 

Operation Marketplace: Taking on Technical Challenges as a Non-Technical Founder
‍
In this episode, Julie Schulte describes how she navigated the technical challenges as a non-technical founder. Listen to the podcast

Launching a new marketplace quickly

You could spend years building a marketplace. In that time, competitors could emerge, and the market could shift. Or, in the end, you could find out that the market isn’t responsive, and you need to start over. 

A marketplace platform allows you to launch in as little as a few months. As Matthew Holder, founder of Loop Golf, said:

“Build something quickly, build it as cheaply as you can using out-of-the-box tools. Launch it, put it in people's hands, and have them tell you it sucks. Great. Why does it suck? The best position for me as a product manager and as an entrepreneur has always been either, this sucks, and it's horrible. Or this is really great.”

Pre-built marketplace platforms minimize time spent on coding, researching best practices, and mitigating bugs and glitches. 

Operation Marketplace: Finding Product Market Fit
‍
In this episode, Matthew Holder discusses why launching — and failing — fast using off-the-shelf tools was critical to Loop Golf’s success. Listen to the podcast 

Future needs are unclear

When you first set out to build a marketplace, you don’t know how the business will evolve and what functionality you need for the long term. Many founders who build vs. buy a marketplace end up needing to scrap it all and re-code as they get further along.

This is the situation that Hotels By Day founder, Yannis Moati, found himself in.  

“We made the mistake of going custom when we didn't specifically understand what we wanted to do and what the traffic would be. […] We were limited at various places and forced to do a whole refactoring of our coding multiple times because we engineered for the most economical solution.”

Marketplace platforms help you avoid future re-coding because they don’t limit you. If you initially code the backend to do one thing, you’re also the one that needs to recode it when you want it to do another. A marketplace platform should have different options available to support you as you scale.

Pros of marketplace platforms

Easier adoption

Purchased marketplace platforms are more accessible for users than custom-built platforms. Forrester’s study showed that:

• Sellers have a more challenging time using custom-built platforms: 70% of the sellers on self-built marketplaces found it challenging to adopt the platform during launch, compared to 46% of sellers on purchased marketplace platforms.
  
  
• Internal marketplace teams are resistant to using custom-built platforms: 70% of respondents with self-built marketplaces found it challenging for their internal teams to adapt, compared to 47% of teams with third-party marketplace platforms.
  

Less expensive

At the outset, it might seem like custom building a marketplace is a cheaper option than using a marketplace platform. But in reality, the costs of software development, hosting, maintenance, and updates add up very quickly. 

Forrester found respondents with self-built marketplaces were 43% more likely to spend $6 million or more on a custom build than those who purchased their marketplace platform from a vendor. 

Marketplace platforms bundle these costs, minimizing unexpected expenses. When operators employ a marketplace platform, they can allocate more of their budget to the core business instead of technical infrastructure.

Built-in best practices 

One of the sometimes overlooked benefits of a marketplace platform is that vendors conduct extensive market discovery to create a technology that follows best practices and market trends. Their software is built based on UX needs common to all marketplaces. They know what makes a marketplace tick and the features users want — and they’ve already developed them. So instead of spending your time on product development, you’re spending it designing an elegant website.

As a bonus, marketplace platforms often assign you a customer success manager who is well-versed in the technology.

Cons of a marketplace platform

Less customization

Marketplace platforms require you to work around an existing system, which may pose more obstacles to creating a unique experience. 

As we said before, the backend of a marketplace usually doesn’t require customization because the backend requirements of all marketplaces are similar. Headless marketplace platforms give you the flexibility to customize the buying experience while providing an out-of-box operational backend. 

Relying on vendor support

Most marketplace platforms are third-party solutions. That means businesses rely on the platform’s support team for fixes, updates, and feature requests. Slow response times or limited support can create roadblocks.

When you’re choosing your marketplace platform, ensure you have a clear understanding of customer support options, and what resources they recommend you have internally to run the platform.

Ongoing subscription costs

Most marketplace platforms use a subscription model to monetize. Businesses pay monthly or annual fees to access features, support, and updates. Costs can add up over time.

Some platforms also charge transaction fees. This means the more a marketplace grows, the more it pays. For businesses with thin margins, these fees can eat into profits. Despite this, it’s still a more cost-effective route than building a marketplace from scratch.

How to choose the best marketplace platform 

Establish the type of marketplace you’re building 

Are you offering digital goods? Physical goods? Services? B2B? Different marketplace platforms have different features that may fit one platform better than another. 

For example, a B2B marketplace may require custom payment functions for credit checks, whereas a digital goods marketplace might only require basic payment methods. Let's dive deeper:

B2B marketplaces

B2B marketplaces often require more complex features like bulk ordering, tiered pricing, custom catalogs, and negotiated contracts to accommodate complex transactions. 

Payment options such as invoicing, net terms, and multi-currency support are also often essential for business buyers to align with standard corporate accounting. Advanced vendor management tools, including performance tracking and compliance checks, are critical for maintaining trust and ensuring compliance. 

Additionally, B2B platforms often need integrations with ERP, CRM, and supply chain systems to streamline operations. 

B2C marketplaces

For those launching a B2C marketplace, you need to prioritize features that enhance the buyer experience to meet today’s buyers’ high expectations for ease of use and convenience. 

Essential tools include user-friendly interfaces, personalized recommendations, and robust search and filtering to help consumers find products quickly. Integrated payment gateways for instant transactions and support for promotions, discounts, and loyalty programs are key for driving sales. B2C platforms also require efficient inventory and order management to handle large product catalogs. 

Compared to B2B, B2C platforms focus more on convenience, speed, and consumer engagement.

Service marketplaces

Service marketplaces require platforms tailored to facilitating bookings and managing service providers. 

Scheduling tools, real-time availability, and calendar integrations are important capabilities for a service marketplace platform. Flexible pricing models, such as hourly rates or tiered packages, accommodate various service types.

Unlike product marketplaces, service platforms need tools for managing provider qualifications, certifications, and compliance. Lastly, communication features, like in-app messaging or video calls, support buyer-provider interactions. 

Digital goods marketplaces 

Digital goods marketplaces call for platform features designed for the distribution of non-physical products. Secure digital delivery systems, such as instant downloads or license key generation, are essential. Flexible pricing options, including subscriptions, pay-per-download, and bundling, accommodate diverse monetization models. Digital rights management (DRM) tools protect intellectual property, while version control and updates ensure buyers receive the latest content.

In digital marketplaces, inventory management focuses on file storage and bandwidth rather than stock levels. Advanced search, categorization, and preview capabilities (e.g., demos or sample files) enhance discovery. 

Identify your customization requirements

How flexible is the platform vs. how flexible are you? If you think you'll need a lot of customizations down the road, keep this in mind as you evaluate your marketplace platform options. As you review marketplace platforms, you want to ensure you’re launching with technology that can support the first version of your marketplace and future versions as it grows. 

Consider what tools you need to integrate with 

Your platform won’t be the only software you use. What other marketplace software will make up your technology stack? Determine if the platform can integrate with apps and third-party software or if you must develop custom integrations. 

Keep in mind that many marketplaces need third-party integrations for:  

• Email marketing software
• Payment software
• Tax software
• Fulfillment software
• Customer support software
• Product information management software
• Inventory management software

Determine your marketplace software budget 

Different platforms come with different price tags. Often, more expensive marketplace platforms come with more support and customization options. 

Remember that building exposes you to hidden costs: integrations, bugs, and fixes, to name a few. A marketplace platform will give you a better picture of your financial commitment, helping you reduce the cost creep of building from scratch.

Keep your vision in mind

Is the vision for your marketplace aligned with what the marketplace platform offers? A marketplace might have all the bells and whistles, but what if it lacks the ad functionality your marketplace needs? Always refer back to your marketplace business plan to avoid losing sight of your priorities. This will help you stay clear on your needs and avoid the perils of keeping up with the Amazons. 

The Ultimate Guide to Choosing the Best Multi-Vendor Marketplace Platform
Dive deeper into platform considerations. Read more → 

Common mistakes when choosing a marketplace platform

Choosing a platform that doesn't scale

A marketplace needs room to grow. Some platforms work well at launch but struggle with more vendors, products, and customers. Performance slows. Costs rise. Features hit limits.

Businesses should choose a platform that scales with them. Nautical is built for growth. It handles more vendors, automates processes, and keeps performance strong as demand increases. Plus, with three pricing tiers offering different functionalities, you have options to grow as your needs change.

Overlooking integrations

A marketplace doesn’t operate alone. It needs to connect with payment processors, shipping providers, CRMs, ERPs, and more. Some platforms have weak integrations. That leads to manual work and expensive custom development.

Nautical integrates with key business tools from day one. APIs and pre-built connectors make it easy to link existing systems.

Ignoring vendor support limitations

Some platforms offer poor support. Slow responses, long resolution times, and limited help can disrupt operations. If a system breaks, vendors and buyers feel the impact.

Nautical users don’t deal with those issues. The platform provides dedicated support, fast solutions, and continuous updates. Businesses get real help when they need it.

Trends and innovations in marketplace platforms for 2025

Marketplace technology is evolving. New tools are making it easier to build, scale, and manage multi-vendor businesses.

AI personalization

AI has the potential to improve recommendations, optimize search results, and change the shopping experience. It can help buyers find products faster and match them with the right sellers. AI-driven chatbots can answer questions, resolve issues, and assist vendors. AI can also help with better fraud protection.

Better no-code builders

No-code builders let businesses launch and manage a marketplace without writing code. But many no-code solutions still have limits. Some lack flexibility. Others struggle to scale.

Nautical is improving its no-code builder. We're making it even easier for non-technical founders to launch and manage a marketplace. The goal is to remove barriers and make setup faster.

Launching on a marketplace platform: Where to begin

When starting a marketplace, you don’t need to reinvent the wheel. Pre-built marketplace platforms come out-of-the-box with the technology to jump-start the launch of new marketplaces. 

As the heart of a marketplace business, a marketplace platform supports a marketplace’s operating, buying, and selling experiences. Understanding the differences between full and partial platforms, cloud service models, and the costs and time of building vs. buying is critical to determining which software strategy is best for a business. 

FAQ about marketplace platforms

Can I build a marketplace without a marketplace platform?

Yes, but it’s difficult. Businesses would need to build everything from scratch—vendor management, payments, order processing, and more. That takes time, money, and technical expertise.

A marketplace platform removes those challenges. It provides the core features, so businesses can launch faster and focus on growth.

How much does a marketplace platform cost?

Pricing varies. Some platforms charge monthly fees, while others require a one-time payment. Costs depend on features, scalability, and support levels.

Nautical offers plans starting at $188/month, depending on business needs. 

Are SaaS marketplace platforms secure?

Security depends on the provider. A strong platform includes encryption, fraud protection, and compliance with global security standards.

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