How to Build an Online Marketplace Like eBay in 2026

SHORT ANSWER

To build an online marketplace like eBay, choose a model and define the vendor and buyer features. Then pick a build option and set up split payments and payouts. The three build options are marketplace SaaS, a commerce platform with a marketplace module, and a custom build. Elogic Commerce helps teams choose by control, speed, and cost.

KEY TAKEAWAYS

• Euromonitor estimates that marketplaces took 62% of global retail ecommerce sales in 2024.
• Start with a focused niche, a clear value proposition, and a monetization model that works for buyers and vendors.
• Plan how to attract both buyers and sellers before launching. A marketplace needs enough supply and demand to work.
• Vendor onboarding, catalog control, order management, and payouts matter as much as the storefront.
• Marketplace SaaS offers a faster launch. A commerce platform with marketplace functionality provides more control. Custom development supports unique business requirements.
• Split payments and vendor payouts require a payment solution designed for marketplaces.
• B2B marketplaces need account-specific pricing, quotes, invoices, and payment terms.

An online marketplace connects multiple independent sellers with buyers through one digital platform. eBay, Amazon, and Etsy are familiar examples, but marketplaces also serve specialized industries, B2B procurement, and service bookings.

Building a marketplace involves more than creating an ecommerce website. You must decide who can sell, how products appear, how transactions work, and how the platform earns revenue. You also need a strategy to attract sellers and buyers at the same time.

This guide explains marketplace business models, essential features, development options, launch steps, and scaling considerations. It also covers the lessons of eBay and the technical requirements of building a multi-vendor marketplace.

Marketplaces in numbers

Online marketplaces account for a major share of global ecommerce activity. According to Euromonitor, marketplaces represented 62% of global retail ecommerce sales in 2024. Third-party sellers generated 81% of marketplace sales that year, compared with 72% in 2014.

Digital Commerce 360 projected that the world’s 100 largest online marketplaces would generate $3.8 trillion in gross merchandise value in 2024.

These figures show the scale of marketplace commerce. However, a new marketplace does not need to compete with eBay or Amazon across every category. A focused market, a distinct business model, and useful seller services can provide a starting point.

What types of online marketplaces are there?

A multi-vendor marketplace lets independent businesses or individuals offer products or services through a shared platform. Buyers can explore listings from different sellers, compare offers, and complete purchases without visiting separate stores.

The marketplace operator manages the platform, its rules, and the shared shopping experience. Individual vendors usually manage their own products or services, availability, and fulfillment responsibilities.

Unlike a traditional single-brand ecommerce store, a marketplace must support relationships between multiple sellers, buyers, and the platform operator.

Model	Example	How you earn
Consumer marketplace	eBay-style platform connecting multiple sellers and buyers	Commissions and listing fees
B2B marketplace	Suppliers selling products to business buyers	Commissions and subscriptions
Vertical marketplace	Marketplace focused on one product category or industry	Commissions and advertising
Service marketplace	Platform for booking services from different providers	Booking fees

What makes the eBay marketplace model different?

eBay began as an online auction marketplace in 1995. Its early position in online auctions helped it build a recognizable brand and a community of buyers and sellers.

Several characteristics of its model remain relevant when planning a new marketplace:

• Independent vendors: sellers can manage their listings and maintain their own commercial identity within the marketplace.
• Product variety: buyers can compare offers across sellers and categories.
• Community and trust: ratings and feedback help buyers assess sellers before making purchases.
• Seller flexibility: vendor policies, fulfillment arrangements, and available selling tools influence participation.
• Multiple revenue streams: listing fees, transaction fees, subscriptions, and advertising create different ways to monetize the platform.
• Platform development: payments, search, integrations, and improvements to the buying experience support marketplace operations.

The main lesson is that a marketplace must deliver value to both sides. Buyers need useful listings and reliable transactions. Sellers need access to customers and tools that make selling worthwhile.

How do online marketplaces make money?

Choosing a monetization strategy is one of the first business decisions. Your revenue model affects the fees vendors pay, the incentives for joining, and the financial sustainability of the platform.

Marketplaces can charge for completed sales, access to the platform, individual listings, or additional services. Some combine several models.

Monetization model	How it works	Advantages	Limitations
Commission-based	The marketplace receives a fee when a transaction is completed.	Vendors generally pay when they generate sales, which can reduce the barrier to joining.	The platform must generate transactions and provide enough value to justify its fees.
Subscription-based	Sellers or buyers pay recurring fees for marketplace access or membership.	Recurring payments can provide more predictable revenue.	Membership costs may discourage participation before the platform demonstrates its value.
Listing fees	Vendors pay to publish products or services.	Revenue can come from listings rather than completed purchases alone.	Listing charges may make it harder to attract sellers during the early stages.
Freemium	Basic access is free, while advanced features or services require payment.	A free entry option can encourage initial adoption.	Premium features must provide enough value to persuade users to upgrade.

A commission model may be easier for new vendors to accept because they pay after a successful sale. A subscription model may suit a marketplace with an established audience or specialized business services. Listing fees and freemium plans provide other options.

Choose the model that matches your market and the expectations of its participants. It should also work with your payment infrastructure, vendor agreements, and operating costs.

How to find the right marketplace niche

Competing directly with established marketplaces across many product categories is difficult. Large platforms already have extensive catalogs, recognizable brands, and communities of active buyers and sellers.

A more focused marketplace can concentrate on a specific industry, product category, customer group, or regional need.

For example, a platform might specialize in fashion, collectibles, medical supplies, industrial equipment, or products for a particular business audience. The objective is to identify a group whose needs are not fully addressed by larger marketplaces.

Research competitors and define your value proposition

Analyze the marketplaces that already serve your intended audience. Compare their product selection, fees, customer experience, seller tools, and service policies.

Your unique selling proposition should explain why vendors and buyers would choose the new platform. It might involve more relevant products, specialized services, clearer fees, or an experience designed for a particular industry.

Industry knowledge and existing commercial relationships can help identify the problems a marketplace should solve. A focused audience also makes it easier to plan the first version of the platform.

Marketplace example: Whola

Whola is an Australian fashion marketplace and an Elogic Commerce client. Its business focuses on connecting fashion brands and buyers in the Australian market.

Elogic Commerce worked on the marketplace’s Magento performance, code quality, search experience, and platform functionality. The project also included features related to geographical exclusivity, minimum orders, and pre-orders.

The example shows why a marketplace’s technical requirements depend on its business model. Industry-specific purchasing rules and seller relationships can require functionality beyond a standard ecommerce storefront.

How to solve the marketplace chicken-and-egg problem

A new marketplace faces a common challenge. Buyers have little reason to visit when few products are available. Sellers have little reason to join when the platform has no customers.

This is often called the chicken-and-egg problem. A marketplace must attract enough participants on both sides to make transactions possible.

The solution depends on the niche, the marketplace model, and the value offered to each group.

Start with the side that is harder to attract

Identify whether vendors or buyers are likely to be the biggest obstacle. Build a clear offer for that group before trying to expand the entire marketplace.

For example, vendor tools that simplify inventory management and small orders may make a B2B marketplace useful even before it reaches a large audience.

Focus on a defined audience

Start with a small community or specialized category instead of launching with a broad selection. Concentrated supply and demand can make it easier for participants to find relevant offers.

Offer incentives to early participants

Discounts, bonuses, promotional opportunities, or other benefits can encourage vendors and buyers to test a new platform.

The incentives should support the marketplace’s value proposition rather than replace it.

Build a community around the marketplace

Events, industry gatherings, and direct conversations with potential users can generate feedback and awareness.

Community activities also help the operator understand what buyers and sellers need before investing in additional features.

Encourage vendors to bring buyers

Vendors may already have relationships with customers. Referral incentives and coordinated promotion can help bring those customers onto the marketplace.

Use exclusivity where it fits the model

Limited access, specialized partnerships, or exclusive inventory can help differentiate a marketplace. These approaches are most relevant when exclusivity creates genuine value for the target audience.

The objective is not simply to accumulate registrations. It is to establish enough relevant products, buyers, and transactions for the marketplace to function.

Must-have marketplace features

A multi-vendor marketplace needs tools for buyers, sellers, and administrators. Its feature set should support product discovery, vendor operations, transactions, and trust.

The following functions combine the essential marketplace requirements with the buyer and seller tools found in established multi-vendor platforms.

1. Vendor onboarding and user authorization: registration, identity checks, account approval, and secure access for different user roles.
2. Vendor portal: a dedicated area where sellers manage products, availability, orders, and payout information.
3. Product catalog: organized categories, descriptions, attributes, and rules for publishing listings.
4. Inventory management: stock visibility and inventory updates to help sellers manage product availability.
5. Administrative dashboard: tools for monitoring vendors, users, listings, transactions, and marketplace operations.
6. Product search: search and filtering that help buyers find relevant products across multiple vendors.
7. Shopping cart: a shared purchasing experience that can handle products from different sellers.
8. Payment methods and split payments: suitable checkout options and a process for distributing funds between vendors and the marketplace operator. Depending on the payment provider, this may include mobile wallets such as Apple Pay and Google Pay.
9. Ratings and reviews: feedback mechanisms that help buyers evaluate sellers and products.
10. Analytics: reports that help administrators and vendors understand sales and marketplace activity.
11. Product images and videos: media management that lets vendors present their offers clearly.
12. Shipping options: fulfillment choices and shipping information relevant to each vendor.
13. Checkout: a clear purchase flow that minimizes unnecessary steps.
14. Order management and reporting: order routing, vendor-specific order visibility, and transaction records.
15. Discounts and promotions: tools for promotional offers and vendor marketing activities.

B2B marketplaces need an architecture that reflects how suppliers, business buyers, and operational systems interact. The Chemveric B2B marketplace case study illustrates Elogic Commerce’s approach to evaluating specialized marketplace requirements and designing commerce architecture around real business workflows rather than relying on a generic marketplace template.

Additional marketplace operations

Beyond these functions, marketplace operators need clear processes for customer support, disputes, returns, commissions, and payouts.

For example, when a buyer orders products from several vendors, each seller should receive the information needed to fulfill its own items. The operator also needs visibility into the overall transaction.

Payment and payout processes require particular attention. A standard payment gateway may not provide all the capabilities needed to distribute funds between independent sellers.

The first release should prioritize features that make real transactions possible. Additional tools can follow as marketplace activity increases.

Three build options

You can build an online marketplace using marketplace SaaS, an ecommerce platform with marketplace functionality, or a custom solution.

The right option depends on the business model, required integrations, budget, and the amount of control the operator needs.

Option	Examples	Best for
Marketplace SaaS	Mirakl, Marketplacer, Sharetribe	Faster launches with relatively standard marketplace processes
Commerce platform with a marketplace module	Adobe Commerce with a multi-vendor extension	Businesses that need greater control or already operate on Adobe Commerce
Custom build	Custom software using a headless commerce core	Unique business models and projects with substantial development budgets

Option 1: Marketplace SaaS

Marketplace SaaS provides an existing software environment for creating and operating a multi-vendor marketplace.

Examples in this category include Mirakl, Marketplacer, and Sharetribe. Such products can reduce the amount of development required for common marketplace functions.

A marketplace website builder or SaaS solution can be appropriate when the business follows standard processes and needs to launch without creating every component from scratch.

The trade-off is control. Custom workflows, specialized vendor rules, and integrations may depend on what the provider supports.

Option 2: An ecommerce platform with marketplace functionality

An established commerce platform can provide the catalog, checkout, customer management, and operational tools needed for a marketplace.

Additional marketplace modules or custom extensions can introduce vendor-specific functions.

Adobe Commerce is one option for businesses with complex catalogs, integrations, and requirements that go beyond a standard online store.

Elogic Commerce provides Adobe Commerce development and Magento custom extension development for projects that need tailored functionality.

Using Adobe Commerce for a multi-vendor marketplace

Adobe Commerce includes ecommerce capabilities that can support the foundation of a marketplace. Multi-vendor functionality must be added through suitable extensions, integrations, or custom development.

Several capabilities are relevant to this approach:

• Catalog management: tools for managing products, attributes, and categories.
• Multiple storefronts: support for operating different storefront experiences through one commerce environment.
• Multi-Source Inventory: inventory functionality for managing stock across multiple sources.
• Product search: search and filtering capabilities that can be adapted to marketplace catalogs.
• SEO functionality: tools that support the management of product and category pages.
• Extensions and integrations: options for connecting the platform with additional business systems and marketplace services.
• Mobile experiences: possibilities for creating progressive web applications or connecting custom mobile applications.
• Personalization: opportunities to adapt product discovery and recommendations.

These capabilities do not automatically turn Adobe Commerce into an eBay-style marketplace. Seller onboarding, vendor permissions, order routing, marketplace commissions, and payouts still need suitable implementations.

They can, however, provide a foundation for businesses that need to integrate marketplace operations with an existing ecommerce architecture.

Option 3: Custom marketplace development

A custom build offers control over the marketplace’s business logic, architecture, and user experience.

This approach may be relevant when the platform needs unusual transaction rules, specialized workflows, or functionality that standard marketplace products do not provide.

A headless architecture can separate the customer-facing interface from backend commerce functionality. Cloud infrastructure and integrations can also be considered according to traffic expectations and operational requirements.

Custom development generally requires more engineering work and introduces additional project risks. It also creates ongoing responsibilities for maintenance and system improvements.

What about Shopify?

Shopify can be useful for straightforward ecommerce projects. However, a standard Shopify store is not the same as a fully featured multi-vendor marketplace.

Businesses considering Shopify for a marketplace should assess whether the required vendor accounts, commissions, order routing, and payout processes can be supported by their chosen applications and integrations.

The platform decision should follow the marketplace requirements, rather than the other way around.

Choosing marketplace payment infrastructure

Marketplace transactions involve relationships between buyers, vendors, and the operator. Payments must account for the platform’s commercial model and the way funds move between participants.

Providers with marketplace-specific functionality include Stripe Connect and Adyen for Platforms.

Depending on the solution, marketplace payment infrastructure may support vendor onboarding, payment allocation, commissions, and scheduled payouts.

Evaluate these features alongside the supported markets, currencies, fees, and operational requirements.

For a broader comparison, see the guide to payment gateway fees.

How to start an online marketplace in 8 steps

Building a marketplace works best as a sequence of business and technical decisions. The first release should test the model and support transactions before the platform expands.

Step 1: Define the marketplace model

Identify the vendors, buyers, target industry, and value proposition.

Decide whether the marketplace is consumer-focused, B2B, vertical, or service-based. Then select a monetization model that fits the participants and the expected transaction process.

Research competitors and document the reasons users would choose your marketplace.

Step 2: Define business and technical requirements

List the functions vendors, buyers, and operators need.

Document registration, catalog management, search, payments, commissions, fulfillment, returns, and reporting.

Separate essential features from functionality that can be added after the launch.

Use a structured requirements list to organize the project.

Step 3: Choose the build option and payment provider

Compare marketplace SaaS, a commerce platform with marketplace functionality, and custom development.

Evaluate how each option supports your revenue model, vendor operations, integrations, and future changes.

Choose payment infrastructure that can handle the required marketplace transactions and payout arrangements.

Step 4: Design vendor onboarding and the vendor portal

Define how sellers register, provide required information, and receive approval.

Plan the vendor portal around everyday tasks such as publishing products, updating inventory, processing orders, and reviewing payout information.

Clear onboarding processes reduce operational work for the marketplace operator and help sellers start using the platform.

Step 5: Build the storefront, search, and checkout

Create the buyer-facing experience, including product categories, search, listing pages, shopping cart, and checkout.

Search and filtering are particularly important when products from many vendors appear in one catalog.

The checkout process should also account for transactions involving products from different sellers.

Step 6: Configure payouts, commissions, and invoices

Implement the financial processes defined by the marketplace business model.

These may include operator commissions, vendor payouts, transaction records, and invoice generation.

Test how payments are handled when orders contain multiple vendors or require changes, refunds, or dispute resolution.

Step 7: Test with a pilot group of vendors

Invite a limited group of sellers to use the marketplace before opening it to a wider audience.

Test registration, product publishing, order processing, payments, and the customer experience.

Collect feedback from both vendors and buyers. Use the results to identify problems in the platform and its operating processes.

Step 8: Launch and add vendors in waves

Start with a defined audience and expand the marketplace as its processes become reliable.

Monitor transactions, seller activity, product availability, and user feedback.

Use the launch results to decide when to introduce additional vendors, categories, integrations, and regions.

A structured ecommerce project plan can help organize development and launch activities.

Teams without internal engineering capacity can hire ecommerce developers from Elogic Commerce to support implementation.

How to choose a marketplace domain name

A domain name is part of the marketplace’s brand identity. It should be recognizable and easy for potential customers to remember.

When selecting a domain, consider the following:

• Choose a name that reflects the brand and its intended audience.
• Keep it reasonably short and easy to type.
• Use wording that is easy to pronounce and remember.
• Consider relevant keywords when they fit naturally.
• Avoid names that are confusingly similar to established marketplaces.

Marketplace example: CLÉ

CLÉ is a luxury jewelry and watches marketplace featured in the Elogic Commerce project portfolio.

Its name comes from the French word for “key.” The marketplace uses the brand identity and the domain werecle.com to communicate its positioning.

Elogic Commerce also worked on optimization for the CLÉ ecommerce project.

The example illustrates how marketplace positioning, naming, and technical development form different parts of the same business project.

How to scale a marketplace business

Launching a marketplace is the beginning of its operation. Growth introduces additional requirements for vendor management, product discovery, transaction processing, and support.

A marketplace should expand when its existing model is working, not simply because new categories or regions are available.

Build sufficient supply in one niche

Focus initially on the vendors and products that serve your target audience.

Expanding the catalog without relevant buyer demand may increase operational complexity without improving marketplace activity.

Track marketplace liquidity

Liquidity describes how effectively marketplace supply connects with buyer demand.

One indicator is the share of available listings that result in sales.

Tracking transactions and listing activity can help the operator understand whether users are finding value in the marketplace.

Improve search, trust, and payments

As listing volume grows, buyers need effective search and filtering. Ratings, reviews, and clear policies also help users evaluate sellers.

Payment infrastructure must continue to support the number of vendors and transactions the marketplace handles.

Automate vendor operations

Manual approval, catalog updates, and payout management can become difficult as the vendor base expands.

Automation can reduce repetitive work in onboarding, reporting, and financial operations.

Expand categories and regions gradually

Introduce additional categories or markets after the initial marketplace demonstrates that its commercial model and operational processes work.

New regions can introduce different payment, tax, shipping, and vendor requirements. These should be considered before expansion.

What drives marketplace cost

The cost of building an online marketplace depends on its technology, business requirements, integrations, and development scope.

A marketplace SaaS product can reduce initial engineering work, but it may involve ongoing provider fees and limitations on customization.

A platform-based or custom solution can require more development. The budget depends on the marketplace functionality and the complexity of the systems involved.

Cost driver	Why it matters
Build option	Marketplace SaaS fees differ from platform integration and custom development costs.
Vendor features	Onboarding, seller portals, catalog management, and payouts increase development scope.
Payments	Split payments, commissions, compliance requirements, and payout rules affect implementation.
Integrations	ERP, PIM, tax, shipping, and other connections add technical requirements.
Operations	Vendor support, moderation, returns, and disputes require processes and supporting functionality.

How development scope affects the budget

Custom functionality requires additional design, implementation, testing, and maintenance.

For example, a marketplace with standard vendor listings and checkout has different requirements from one that supports complex B2B pricing, multiple inventory locations, and connections to enterprise systems.

Development costs also depend on the team responsible for the work and the estimated hours required for each project phase.

The original version of this guide discussed a broad marketplace development budget of $10,000 to $100,000 and a development period starting at approximately three to four months. Those figures are historical estimates from the earlier article, not fixed prices or delivery commitments.

A project estimate should be based on the selected build option, a defined requirements list, integrations, and the work needed to release the marketplace.

B2B marketplace notes

B2B marketplaces connect suppliers with business buyers. They often require purchasing workflows that differ from those found in consumer marketplaces.

Business customers may need organizational accounts, negotiated prices, quotation requests, invoices, and payment terms.

Plan these requirements when defining the first release rather than treating them as optional additions.

Common B2B marketplace requirements

• Company accounts: purchasing access and account structures suited to business customers.
• Account-specific pricing: prices or commercial terms associated with individual customer accounts.
• Quotes: processes for requesting and reviewing commercial offers.
• Invoices: documentation and records required for business transactions.
• Payment terms: purchasing conditions that may differ from immediate consumer checkout.
• Business system integrations: connections with systems used for product information, inventory, orders, and financial processes.

These features influence platform selection and technical architecture. They should be reflected in the marketplace requirements before development begins.

Elogic Commerce provides B2B marketplace and portal development for businesses planning this type of ecommerce project.

How Elogic Commerce helps build online marketplaces

Building a marketplace requires decisions about the commercial model, technical platform, vendor operations, and integrations.

Elogic Commerce works with businesses developing ecommerce marketplaces and portals, including projects based on Adobe Commerce and other commerce technologies.

The company’s experience includes marketplace projects such as Whola and CLÉ, where platform functionality and performance were important parts of the work.

Elogic Commerce has delivered 500+ ecommerce projects since 2009.

For a new marketplace, the first step is to define the business requirements and compare development options. This helps establish the scope of the initial release.

Elogic Commerce compares build options for your model and plans the first release.

PLAN YOUR MARKETPLACE

Sources

• Euromonitor: the global online marketplace landscape in 2025
• Digital Commerce 360: top global online marketplaces data