Already have an e-commerce site? 3 things to know before launching a marketplace

Developing a catalogue, modernising an online presence, finding a new growth lever... There are plenty of good reasons to transform an e-commerce site into a marketplace! Not to mention the fact that successful marketplaces are on the rise. However, creating a new distribution channel by launching a marketplace online is not something that can be improvised. Here are 3 things and steps to know before to start a marketplace launch and jave as many buyers and customers.

How do I get started on a marketplace and how long does it take?

Launching a marketplace platform requires a solid foundation, from defining the value proposition to ensuring a seamless experience for both sellers and buyers. Conducting target market research, understanding the target audience, and identifying key metrics will help in structuring a marketplace model that aligns with the business goals. Successful platforms leverage market research data-driven insights and reviews, a strategic approach, and social media marketing (for the target audience) to build visibility and buyers' engagement.

Building a marketplace is not just about adding new sellers—it’s about creating an ecosystem in the respective industry where people feel secure and valued. The first version of a marketplace should include everything necessary to attract both buyers and sellers while allowing room for future scalability. Strong onboarding processes, clear policies, and reliable customer support are key factors in ensuring the marketplace is built on a solid foundation.

1. Be prepared to support third-party sellers

The first major shift when moving from an e-commerce site to a marketplace is managing multiple vendors instead of just one. Recruiting third-party sellers is a crucial step in marketplace building, as they become the face of the brand for buyers.

Marketplace building: supporting sellers for success

It's important to choose sellers that are trusted—ones who align with the values and understand the dynamics of digital marketplaces. Strong seller support through structured onboarding, training, and clear guidelines ensures smooth operations. The marketplace model should include dedicated account managers to oversee seller relations, provide user feedback, and ensure high-quality service.

Investing in automation and digital solutions can streamline platform operations, enabling to manage multiple vendors efficiently. By treating third-party sellers as partners and offering continuous support, the marketplace platform create an opportunity for mutual growth while ensuring a seamless experience for buyers.

A robust network effort is required to keep sellers engaged and performing well. Encouraging them to participate in social media marketing and optimising their product listings will enhance their visibility, making the online marketplace model more attractive for new vendors.

Additionally, clear pricing strategies and a well-defined commission model will help sellers understand how they can maximize their earnings on the platform. People tend to trust platforms where transparency is key, ensuring that both vendors and customers feel confident in their transactions.

2. Find the right balance between the offer and that of third-party vendors

How to launch a marketplace platform?

Transitioning from an e-commerce website to a marketplace concept means adopting a multi-vendor structure. This requires striking a balance between the business own offerings and those of third-party sellers.

Key steps in marketplace launch

• Develop a centralised catalogue: Maintain consistency in product presentation through a well-structured site.
• Optimise the user experience: Implement a robust search function and intuitive navigation.
• Enhance visibility for third-party sellers: The platform must fairly promote all sellers to ensure their success.
• Refine the product launch strategy: Test different specific categories, evaluate user feedback (through a rating system tool for example), and adapt to market demand.
• Leverage social media marketing: Use digital marketing strategies to increase reach and attract more sellers and buyers.
• Define a clear pricing strategy: Establish transparent commission structures and transaction fees to build trust among sellers and buyers.
• Ensure the first version is functional: The initial release should cover everything essential while allowing room for future improvements and direct sales.

By establishing clear guidelines, maintaining high platform standards, and continuously analysing key metrics, the platform operator can create a scalable and sustainable digital marketplace with global reach.

Additionally, the best way to ensure long-term success is to consistently gather user feedback, work on network effects, and refine the marketplace model based on seller and customer insights. This approach reduces barriers to entry for new sellers and helps retain existing ones by improving their selling experience.

3. Identify the right payment service provider (PSP)

Unlike a traditional e-commerce site, the marketplace model involves three key players:

• The buyer
• The seller
• The marketplace operator

This structure affects payment flows and necessitates a compliant payment system. Online marketplace operators must handle third-party transactions while adhering to PSD2 and the coming PSD3 regulations.

What is the best way to choose a PSP for a marketplace?

To ensure smooth transactions, ask the following questions:

• Does a platform cater to businesses, customers, or both?
• What are the ambitions for global reach?
• Which payment methods to support to convince the target audience?
• How will transaction fees and commissions be managed?
• How does the payment system align with the pricing strategy?
• What solutions or tools will best protect user data?

A reliable PSP should offer flexibility, scalability, and compliance. The right payment system ensures secure transactions, reduces barriers to entry, and enhances trust among sellers and buyers.

As a certified payment service provider, Lemonway offers tailored solutions for marketplaces, integrating seamless payment processing, data protection, and compliance with regulatory requirements. Whether you're operating a B2C marketplace (like Etsy), a B2B marketplace or a services marketplace, Lemonway adapts to the unique needs, both for sellers and buyers.

Roadmap to make a successful marketplace launch

Launching an online marketplace requires meticulous planning and strategic execution. From market research and seller onboarding to payment system selection and customer engagement, every step plays a role in shaping a thriving platform. By leveraging digital marketing, optimising user experience, and refining your approach based on reviews and data insights, it is possible to build a high-performing marketplace with long-term success.

A well-executed launch should include strong network efforts, an optimised payment system, and a structured approach to integrating multiple vendors. Defining a clear pricing strategy and leveraging social media marketing can also provide a competitive advantage.

Ensuring that the first version of the platform is functional and attractive to people is critical. This means including key marketplace features, building trust through a transparent approach, and ensuring smooth transactions between buyers and sellers. The best way to build a strong foundation is by continuously gathering feedback and improving the platform.

Are you ready to take your e-commerce business to the next level? Contact us today to discover how Lemonway can support your marketplace journey, for B2C marketplace, B2B platform or C2C site!