A peer-to-peer marketplace is a platform that connects people who want to buy or sell a product but don’t have the resources to do so online. The community’s resources and activities wholly power the platform, and business owners provide the conditions for interactions and payments.
Peer-to-peer (p2p) marketplaces have surged in popularity over recent years. The p2p model offers financial advantages as business owners don’t have to invest in purchasing products or taking care of storage. The only investment made is in website development and promotion.
P2P marketplaces are flexible and innovative. The p2ps are the first to adopt big innovations like artificial intelligence or big data. This is because it’s easier for such platforms to focus on changes than financial issues. There’s a low barrier to entry, and you get a clear outlook on customer activity.
Some examples of P2P marketplaces are Etsy, Airbnb, and eBay. Everyone who wants to learn how to build a peer-to-peer marketplace can read carefully.
How to develop a p2p marketplace
The first place to start is software development. The website’s functionality and interface will play a vital role in business success. You can develop a p2p marketplace by following the steps below:-
- Sum up a business model: You need to have a clear understanding of your business before you start looking for a software development team. You establish a business model, outline the functionality, define the target niche, and consider the scaling opportunities.
- Choose between a ready solution or a custom-developed platform:- You can choose an open-source p2p marketplace, e.g., Sharebrite or Magento. Or, you can build your custom website. Your decision depends on your budget, the time you have on your hands, and your overall idea of the features you want to implement. Each option has its advantages and disadvantages.
Using a ready platform to build your p2p marketplace
You can get a simple and fast solution from Sharebrite or Magento. The advantage of this option is that it’s affordable and straightforward. All you need to do is register and figure out how to customize the template to suit your needs.
One disadvantage of this approach is that you work with a limited design and features. You’ll have scaling issues as the platform won’t let you bring innovative features to the market. Also, you’ll have no control over third-party technical issues.
Developing a new platform
When you hire a development team to help you build a new platform, you have a say in every aspect of the marketplace: the functionality, user interface, add-ons, analytics, and admin panels. The advantage of building a p2p market from scratch is that there are no limitations over functionality, interface, administration, statistics, e.t.c. The developers can provide expert consults for your business, translating business needs to software solutions. Also, getting scaling opportunities and maintenance is simple.
The disadvantage is that such projects are expensive and can last many weeks, depending on the complexity of the platform. Moreover, investing in a software team is obligatory, and the business owner has to hire developers, UX/UI designers, and software testers.
A p2p marketplace benefits customers, sellers, and the marketplace owner. The platform is a great investment project for the owner with different options for future development and enlargement. For sellers, there’s no need to open an offline store as the marketplace gives you access to a large target audience. In addition, you can communicate directly to customers and provide and receive feedback in real-time.
For customers, one of the benefits of a p2p marketplace is the ability to compare different products and sellers and make an order without leaving the platform.
You can have software developers build your p2p platform from scratch, or you can use a ready-made template from sharebrite or Magento. You must consider your budget, time, and the overall idea of the features you want to implement. Good luck.
how to build a peer-to-peer marketplace