How Much Does It Cost to Build a Marketplace in 2020?

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How Much Does It Cost to Build a Marketplace in
2020?
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• What is a marketplace?
• A marketplace is basically an independent
  platform that operates online, and its purpose is
  to connect buyers and sellers directly. No actual
  warehouses are required to store items, because
  the database contains descriptions and photos of
  goods. To survive among competitors, the
  marketplace must provide the most advanced
  security features for E-commerce Fraud Detection,
  guarantee the integrity of a deal for each side,
  and offer features such as detailed tracking of
  purchases in real-time.

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• What are the benefits of marketplaces?
• The main advantages for businesses are the
  following
• You will get an additional channel on which to
  advertise and sell your goods or services
• Compared to other sales channels, marketplaces
  require lower marketing costs
• More opportunities for international sales
• Marketplaces are loved by customers and very
  convenient
• An established online marketplace improves your
  brand image and builds client loyalty
• Getting independent reviews and opinions on your
  products or services makes them more attractive
  and ultimately increases sales
• Marketplaces make it easier to find new business
  partners and
• They work 24/7 with no limits on operating time

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• Amazon is the biggest marketplace in the United
  States. Initially, it was an online bookstore but
  has now expanded to include toys, electronics,
  pieces of art, and tons of other items. In 2020,
  its a multi-billion-dollar corporation with 11
  marketplaces across the globe with a customer
  database from 180 countries. Amazon became a
  technological company and now offers cloud
  infrastructure services (AWS), analytics services
  (Alexa), other software products, and multimedia
  content. They leverage Artificial Intelligence
  for Predictive Analytics in Retail to know what a
  customer wants and even provide Customer Demand
  Forecasting with Machine Learning. As you can see
  here, the marketplace is not the sole business
  model for Amazon, as they are looking to grow in
  other directions in order to remain the leader in
  E-Commerce.

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• So, how much does it cost to build a marketplace?
  These options, according to average costs, are
  available.
• 1,000-5,000 budget
• Building a platform from scratch with a hired
  team of experts is not an option at all because
  of the costs involved. However, you can consider
  leveraging a SaaS solution or maybe an
  open-source software marketplace. Using a generic
  e-commerce and website builder is also a great
  possibility for this amount of money if you can
  code and you dont need the help of a software
  development team, you can try to build it
  yourself.

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• 5,000-50,000 budget
• This is a great budget to work with. You can use
  API-based software, build a marketplace website,
  and still have some money left to implement new
  features. Hiring a developer and using generic
  website builders or open-source software is also
  a possibility here, but you must be aware that
  you might not have much money left for updates.
  This budget is still not sufficient to build a
  platform from scratch with hired software
  developers.
• 50,000-150,000 budget
• This budget is perfect for hiring top software
  developers and building your custom marketplace
  from scratch with all the necessary features. You
  are limited to only what you actually need to
  achieve all options are available with this
  budget.

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Sources for more information on Marketplaces

1. https//spd.group/ecommerce-solutions/build-a-mark
   etplace-in-2020/
2. https//www.forbes.com/sites/richardkestenbaum/201
   7/04/26/what-are-online-marketplaces-and-what-is-t
   heir-future/1f6e6ab53284
3. https//www.mti.gov.sg/Resources/feature-articles/
   2020/Trends-in-E-commerce-in-the-Services-Sector
4. https//www.gsb.stanford.edu/faculty-research/case
   -studies/e-commerce-building-blocks
5. https//rubygarage.org/blog/how-to-build-a-marketp
   lace-startup