How to Make a Website Like eBay: Step-by-Step Guide & Costs

How to Create An Online Marketplace Like eBay From Scratch

The success story of eBay is one for the books. The sweet darling of the ‘90s, it started as an auction marketplace and has grown into a billion-dollar powerhouse, still bringing in $10.19 billion in revenue. No wonder retailers are eager to get a piece of that pie by building a website like eBay.

But where do you begin?

How much time and money will it take to create your own online marketplace?

Do you need to know the basics of coding or can you hire a pro developer to do it for you?

At Elogic, we’ve been in the ecommerce game since 2009, and we’ve seen our fair share of auction sites like eBay come and go. If you think the market is oversaturated and there’s no room for new ideas, think again.

We’ve got the insights to help you navigate the challenges of building an auction website like eBay, step by step.

Let’s get started.

What Type of Website is eBay: All You Need to Know About Multi-Vendor Ecommerce Marketplaces

Before we talk in detail about how to create an ecommerce platform like eBay, it’s crucial to define what it is.

eBay is essentially an online marketplace, also known as a multi-vendor marketplace. By definition, it is a platform where a customer can purchase various digital or physical products, services from multiple sellers, suppliers, or shops. Unlike traditional ecommerce websites that sell the products of one brand or one niche, eBay works in the same way as Amazon or Etsy.

Basically, shopping at an online marketplace is like shopping from a few different ecommerce stores at the same time. Customers can pay all vendors in a single transaction rather than visiting each store and placing their orders individually.

The owner of a marketplace should secure a smooth shopping experience for both users and vendors. They’re in charge of customer retention, order management, website optimization, managing financial transactions, and third-party vendor deals.

What Makes eBay So Successful?

If you want to know why eBay is still standing strong after all these years, the answer lies in a mix of good timing, smart moves, and understanding what both buyers and sellers really want.

First-mover advantage: eBay got its start back in 1995, and being one of the first online auction platforms gave it a major leg up. By the time others tried to jump into the game, eBay already had brand recognition and a loyal user base that made it hard to beat. If you’re wondering how to create a marketplace website, getting an early start in your niche can make a huge difference.

ebay auction web — Auction Web home page in 1990s.

Vendor-friendly business model: eBay has always catered to its sellers. They keep fees manageable, allow vendors to customize their marketplace pages, and provide freedom over shipping and return policies. Sellers can essentially build their own mini-brand on eBay, which adds a personal touch that’s hard to find on other platforms.
Global reach: From rare collectibles to mundane household items, eBay has it all. This variety keeps both niche collectors and everyday shoppers coming back for more. The online shopping platform now has over 132 million active buyers worldwide.
Acquisitions and integrations: Over the years, eBay made some smart acquisitions—like PayPal, Craigslist, and Skype—that strengthened its ecosystem. Integration with secure payment gateways, in particular, made transactions smoother and more trustworthy, which is a huge plus when you’re buying from strangers on the internet.
Community and trust: eBay knows that trust is everything. They’ve built a community where buyers and sellers rely on ratings and feedback to make informed decisions. This transparency creates a level of comfort that keeps people coming back, knowing they’re protected.
Revenue streams: eBay isn’t just about listing fees. They’ve diversified their income with seller fees, subscriptions, advertising, affiliate programs, and more. This multi-pronged approach keeps the cash flowing, which in turn allows eBay to keep improving the platform.

How does ebay make money? eBay marketplace business modelщ

These key factors, along with eBay’s ability to adapt to market changes and keep sellers empowered, have cemented its place as a leading online marketplace.

If you’re considering how to build a marketplace website from scratch, these lessons from eBay are a great place to start.

How to Create a Website Like eBay: A Step by Step Guide

When eBay ventured in, Omidyar had no alternative but to start everything from the ground up. Fortunately, we live in a world full of modern technologies that make the whole process of developing a multi-vendor marketplace easy with less upfront investment.

Here are a few steps you need to follow to create an online marketplace website like eBay.

Step #1: Find your ecommerce niche

When you start your own online marketplace, one of the biggest challenges is dealing with high competition. Ecommerce giants like eBay, Etsy, and Amazon have already covered multiple market segments and won the trust of millions globally, so breaking into the market is tough.

To stand out, you need to niche down. Narrow your focus and identify a specific market that isn’t overly saturated. It doesn’t have to be clothes or vintage items—any niche can work, even something like medical supplies or specialized industrial equipment.

For instance, Whola, an Aussie fashion marketplace and one of Elogic’s clients, focused on apparel and clothing, collating some of the best fast-to-market fashion brands. They have a clearly defined target audience, which adds to their exclusiveness in the Australian region. The key is to find a gap that larger players haven’t fully dominated.

build a marketplace website like Whola — Whola fashion marketplace.

Do some competitor analysis to see who is already serving that niche and figure out your unique selling proposition (USP)—whether it’s lower fees, better customer service, or a tailored experience for your audience.

Insider tip: Finding a niche is about focusing your efforts where you can make the most impact. Leveraging your personal experience or connections within a specific industry (like medical equipment or unique artisanal goods) can help you gain an initial foothold. Use what you know and stay resourceful.

Step #2: Choose a monetization strategy

You already know eBay makes money from transaction fees. But will this model work for you?

Choosing the right monetization strategy for your marketplace is crucial, as it will influence both your income and how vendors generate earnings. Here are some popular models used by online marketplaces:

Monetization Model	Description	Pros	Cons
Commission-based	Charge a fee for every transaction that occurs on your platform. Used by Amazon, Airbnb, and Fiverr.	Attracts vendors faster since they pay only when items are sold.	You need to provide enough value for the fee you charge (e.g., insurance, marketing support).
Subscription-based	Charge a membership fee for sellers or customers to access your marketplace. Used by Glossier’s Beauty Club.	Predictable, regular income.	Must provide enough value for both vendors and shoppers; upfront payment may deter users.
Listing fee	Charge vendors a fee for listing their products or services. Common on platforms like Etsy.	Works well for merchants with low sales volume who want marketing reach.	Harder to solve the initial supply-demand (chicken-and-egg) problem; need consistent product listings.
Freemium	Offer free basic features and charge for premium features (e.g., Craigslist).	Allows the marketplace to scale quickly with minimal ad spend.	Paid features must be valuable enough for users to upgrade, otherwise, the model fails.

Each model has its advantages and challenges. The key is to pick the one that aligns best with your marketplace’s value proposition and the type of vendors and customers you want to attract.

Step #3: Solve the chicken-and-egg problem

The chicken-and-egg problem consists in attracting vendors and shoppers when your platform is still a blank page. After all, why would the customer visit your marketplace if there are no products, or why would businesses register if there are no customers?

The answer to how to make a website like eBay depends largely on the business model you choose, as discussed in Step #2 of this guide. Still, here are a few things you may do to populate your multi-sided website:

Get the hardest side first: create value either for your sellers or for your customers to join your marketplace. For instance, you can digitize your inventory, making it easier for buyers to order small quantities directly through an online system. This way, you build early traction for demand, and the supply gets ten times easier to onboard.
Concentrate on a particular niche: before becoming popular, eBay first got traction with Beanie Babies. Find the small groups of customers that care most about your marketplace and go after them.
Subsidize the most valuable side of your business: offer generous discounts, bonuses, or perks for something that your marketplace is known for.
Host events and gatherings: generate community around your business, give your customers direct feedback, and create some buzz about it on social media. That’s how Poshmark set out to build a marketplace website.
Onboard two sides simultaneously: prompt sellers to bring in buyers and offer incentives for it.
Create exclusive access: restrict access to your marketplace and create the fear of missing out. On top of that, you can partner with an influencer or a celebrity to build a strong word of mouth and a flood of signups to your marketplace.

Step #4: Select a reliable domain

The choice of a reliable domain name is an important step for creating the best multi-vendor marketplace like eBay.

Choose the name that accurately conveys what your brand stands for. Make sure that your domain name is:

unique and catchy
easy to remember
short and simple to type and pronounce
include targeted keywords.

It’s also better to avoid using a domain name that is similar or identical to existing popular marketplaces.

For instance, CLÉ, an Arab jewelry marketplace whose marketplace was optimized x2 by the Elogic team , came up with a name that translates as “key” from French. The domain name werecle.com reads as “we are the key”, thus inciting interest to buy and sell luxury, limited-edition timepieces among both vendors and buyers.

Step #5: Define the key features of your online marketplace website

If you want to compete with the big players like eBay, you need to nail down the features that make your platform stand out. These will provide a killer user experience and keep users coming back for more.

How to create an app like eBay? Keep in mind the following features:

User-friendly authorization process: Make it easy for users to sign up and get started. Quick and secure authorization keeps users happy.
Comprehensive product catalog and descriptions: A well-organized product catalog with detailed descriptions is crucial. Buyers need all the information at their fingertips to make informed decisions.
Inventory management: Keep things in check with an efficient inventory management system. Sellers need to know what’s available, and buyers need to know it’s in stock.
Admin dashboard: Give admins a powerful dashboard to manage everything seamlessly—from user activity to transactions.
Product search: Build a marketplace search engine.Buyers should be able to find exactly what they want without the hassle.
Shopping cart: A smooth shopping cart experience helps users add products and manage purchases easily before they check out.
Chat support: Instant support can be a game changer. Whether it’s automated or live, chat support helps resolve issues fast and builds trust.
Multiple payment gateways: Give users options. The more payment methods you offer, the easier it is for buyers and sellers to complete transactions. Since more and more users shop from mobile, don’t forget to add Apple Pay and Google Pay.
Reviews and ratings: Buyers trust other buyers. Allow users to leave reviews and ratings to build community trust and transparency.
Powerful analytics: Sellers and admins need insights into how things are performing. Analytics help refine strategies and boost growth.
Product images and videos: Quality visuals can make or break a sale. Give sellers the ability to upload clear images and videos to showcase their products.
Shipping options: Make sure users have multiple shipping options to choose from. Flexibility in shipping helps make the buying process more convenient.
Easy checkout: A fast checkout process is key to reducing cart abandonment. Make it as simple as possible.
Order Reports: Give sellers the tools to track and manage their orders with ease.
Discounts and Special Offers: Everyone loves a good deal. Allow sellers to create discounts and promotions to attract buyers.

Step #6: Choose an ecommerce platform

Since you’re planning to build an online selling site like eBay, you need to decide on the best-suited ecommerce solution.

You can go two ways here:

If it’s just a handful of items, there’s no need to reinvent the wheel—skip the coding headaches and use Shopify. It requires a bit of tech-savviness, but no actual coding. Plus, hiring someone to set up a Shopify site won’t break the bank.

But if you’re dreaming of a marketplace where a whole bunch of people can buy and sell—like Etsy—or if your idea is so unique that any other out-of-the-box solution can’t handle it, then you’re diving into custom development territory. Totally doable, but will take more work though.

If you decide to go the custom route for a more advanced marketplace, picking the right ecommerce solution is crucial. Your future auction website needs to handle large traffic and be scalable from day one, especially if you’re planning to grow fast. So forget basic SaaS solutions—you want something cloud-hosted and headless, with the flexibility to grow without limits.

Here are some resources to help you choose the right platform for your business:

Need help picking an ecommerce platform? Elogic has 16 years of experience in ecommerce development and over 500+ successfully launched projects across platforms.

Reach out to us for an ecommerce consultation and let’s get your marketplace off the ground!

How to Build a Multi-Vendor Ecommerce Website Using Adobe Commerce

Before you choose the right ecommerce platform for your online marketplace, here are only a few things that should make you consider Adobe Commerce (formerly Magento) a great fit for eBay style websites:

The platform offers a flexible and highly customizable shopping cart system with advanced marketing, search engine optimization, and catalog-management tools.
It supports multiple storefronts. So if you suddenly decide that besides selling B2C in one country, you wish you sell B2B across countries like eBay, you’ll have no problem launching and managing them from a single admin panel.
A Multi-Source Inventory (MSI) is built into Adobe Commerce, so you can streamline your inventory management processes and maintain more up-to-date info.
A deep product search will prevent your customers from getting lost in marketplace listings.
Adobe Commerce is SEO-friendly, which should help your marketplace rank higher and even solve that chicken-and-egg problem we discussed earlier.
You’ll be able to implement product recommendations and personalize your sellers’ listings based on user behavior (a hot trend for all marketplaces!).
It’s easy to go mobile and build a custom native app or a PWA to bring your marketplace to handheld devices.

…and many more!

Besides ecommerce consultations at Elogic, you can also hire experienced Magento developers to set up the marketplace environment or build a custom extension for you.

How Much Does It Cost to Build an Online Marketplace like eBay

The cost of creating an online marketplace will vary depending on your choice of the platform, business requirements, and human resources needed to complete the project.

For instance, if your go-to ecommerce platform is Adobe Commerce, your marketplace will require a lot of custom development. So while calculating the cost of building an online marketplace website, you have to consider the hours to be spent on development and multiply them by a Magento developer hourly rate ($150-200/hour for developers from North America and Western Europe, and $50-100/hour for engineers from South America and East Europe).

Overall, get ready to spend from $10,000 to $100,000 including your website UI/UX design, project setup, integrations, and custom feature development. Based on our experience, the development team delivers the project in a minimum of 3-4 months.

Check out our related article to find out the costs to launch and maintain ecommerce websites.

Ecommerce cost

How Much Ecommerce Website Costs: Set the Right Budget for Your Project

Are You the Next eBay?

Do you have a big idea that could be the next eBay success? Websites like eBay encourage many businesses to create a similar platform. It is understandable as building a successful marketplace yields results with lots of shoppers, a high conversion rate, and great revenue.

At Elogic, we’ve helped quite a few marketplaces pave their way to success and become the new eBays of their industries. Check out our projects, contact us for a consultation, and launch your marketplace hassle-free!

Make a site like eBay with Elogic

Use our wealth of expertise to create an online marketplace of the future.

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FAQs

Are there any other websites like eBay?

There are plenty of marketplaces worldwide targeting different markets across countries. Besides eBay and Amazon known internationally, the US consumers buy from Bonanza, Ruby Lane, and Etsy. In Europe, you’ll find Zalando, Conforama, and Allegro. Your marketplace might be on top of the list, too! Just contact us and we’ll build a sleek, functional website like eBay for you.

How to attract vendors to your marketplace?

To solve the chicken-and-egg problem, you can offer them some perks or bonuses for signing up, subsidize the most valuable side of your business, or host online and offline gatherings to get attention. Your business model will also play a role: it’s been proven that commission- and freemium-based websites attract more vendors faster.

How to build a marketplace from scratch?

To build a marketplace from scratch, you’ll need to write a business plan choosing your ecommerce niche, conducting a competitors’ analysis, and opting for a single or mixed monetization model. Then, you’ll need to choose an ecommerce platform and build a website with all the marketplace functionalities and design to attract more vendors and consumers.

FAQs

Are there any other websites like eBay?

How to attract vendors to your marketplace?

How to build a marketplace from scratch?

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