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How To Setup A Marketplace?


Picking the best solution for building the marketplace is the most critical decision. And can be a lot more learning journey which needs many research and experience to set up.

But before you start hunting the different software solutions available, you first need to understand the types of ways available for building the marketplace.

One can build a marketplace in 3 ways:

1. Saas based model (for a small company)
2. Self-hosting model (for a medium/large company)
3. Develop from scratch

Saas Based Model

This is the fastest way to launch your marketplace. Basically, SaaS is a software licensing model in which software is licensed on a subscription basis and is centrally hosted.

SaaS model eliminates the load of technical deployment from the entrepreneurs to the SaaS provider. This avoids the hassle of creating their own e-commerce platforms and maintaining it’s infrastructure. SaaS providers centralize their systems to implement all technical aspects of their customer’s website.

For saas based model, Shopify and BigCommerce is the option for e-commerce business, and to convert it into marketplace you have to install a plug-in known as Shopify Multi-vendor Marketplace.


• Quick & Fast to setup.
• No technical background is required.
• No server maintenance or hosting charge.
• 24×7 support from the support team.


• Pay monthly or Annually.
• Data is on a different server.
• Limitations in customizability.
• Limited Accessibility.
• Not suitable for marketplaces and a big stores.

Self Hosted

A self Hosted option is faster than building your marketplace from scratch. And, also known as Open Source or Ready-made Solution. There are many free or one-time fee CMS available online which have front end & back end both by default.

Existing software solutions will already have some basic functionality requirements. So if you want to build additional features on top of the existing feature set then either you can create it on your own if have skills. Else you can reach the third party to do it for you.

And to manage the website traffic you need to have the best server infrastructure. It should have an elastic approach moreover cloud server with loader balance.


• Highly customizable and scalable.
• Cheaper and faster than building it from scratch.
• Data is on the personal and manageable server.
• Easy Integration third-party plug-ins.
• Web API feature.
• Simple interface & easy to use.
• Community support.


• Some technical skill is needed.
• Support & Maintenance team is needed.

Develop from scratch

One can also develop their marketplace from scratch using programming languages. Creating your marketplace from scratch allows you to build exactly what you have in mind.

One can create its own if he is a skilled coder. A number of benefits involved like you have access to all the source code, no licensing issues, and subscription costs. Else you can reach a third party developer to create it for you.

Scratch web development is suited for a multinational company who have experience around 10 to 15 years in the field of commerce just like Amazon. Development from scratch needs huge assets. It needs to hire expert technical, domain management for the various module and various type of hosting for huge traffic control involves.


• You can make it look exactly you want.
• Robust API and Code structure.
• Community Support.
• Choose any programming language.


• Huge investment & money.
• Need an expert technical team.
• Need customer support team.
• No standard practice.

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