The Ultimate Guide to Create a Marketplace App in 2025: Features, Tech Stack, and Use Cases

Marketplace apps are all around us. They are revolutionizing and transforming businesses all around us. From fashion to grocery delivery to the pharma industry, marketplace apps are bringing an accelerated shift in how business is conducted across industries. For consumers, it is now normal to head to the app store to look for a new app to solve their needs. To capitalize on this increasing online-first shopping trend, new marketplace app launches take place globally, more than ever. 

So what exactly is an online marketplace? 

At a fundamental level, think Amazon. A marketplace platform that you launch with no inventory of yourself to sell. You simply invite third-party sellers on the platform to sell to buyers ― and manage eCommerce operations by assigning Admin(s) to the marketplace. 

That said, given the rising competition in the industry, you need robust marketplace apps to achieve their objectives effectively and efficiently. But, how do you build such an app? Read our ultimate guide to create a marketplace app in 2025. In this guide, we cover all about marketplace apps, their types, top 15 features, and steps to build a marketplace app.  

Let’s dive in. 

Why Build a Marketplace App in 2025 

Historically, the eCommerce industry has been supercharged with major technological developments. While advancements like Web2, SSL, and secure payments were significant, the emergence of immersive mobile devices earmarked a transformative spike in the industry’s growth. 

According to Statista, the revenue generated from mobile commerce will be US $2 T in 2024. Moreover, it is expected to double this figure in the 4 years to follow, encapsulating 63% of total retail sales. This growth is parallel to how mobile devices have grown in significance in our lives. Unlike any other device before them, they are virtually an inseparable part of everything and anything. Mobile commerce leverages this connection to prosper. Let’s discuss the benefits of mobile commerce to eCommerce businesses. 

1. On-the-go convenience and accessibility

The very nature of mobile devices, portable, handy, and highly capable opens up opportunities beyond the obvious. eCommerce businesses have the opportunity to reach their customers on the go. Similarly, consumers have the convenience of accessing their favorite eCommerce sites, without restrictions. 

2. Simply more numbers 

With a mobile app, your business enhances the opportunity of reaching more devices as a simple math proposition. Since mobile phones are convenient, they are by far more popular than any other device. And this is true across demographics. 

3. Mobile devices capabilities

Little do we imagine, but mobile devices have slowly engulfed a plethora of devices to become an all-in-one solution. Cameras, maps, capable hardware, and multiple sensors, mobile apps have multiple hardware possibilities to capitalize on. 

4. Additional Data 

Data is pivotal to driving decisions in the digital world. However, in eCommerce, its all the more critical. Mobile devices provide businesses the opportunity to generate pivotal consumer behavior data to drive their strategic decision-making. 

5. Multichannel possibilities 

Today, consumer touchpoints for a business are multi-faceted. Gone are the days when a consumer would travel miles just to get a hold of their favored products. Now they expect brands to be present offline, online, on social media et al. With mobile devices, multichannel possibilities open up to a much greater extent. More information on this, a little later in the blog. 

These benefits highlight why marketplace apps are becoming essential to buyers’ eCommerce experience and will continue to dominate the digital commerce landscape in the coming years.

Marketplace App Impact of Top Players in Multivendor eCommerce Industry

Mobile apps have revolutionized the fortunes of many popular names in the eCommerce industry. However, for some businesses, they have been particularly instrumental in jet setting the brand. Let’s discover the top brands that gained significantly from an m-commerce strategy.

1. Amazon 

Founded by Jeff Bezos in 1994, Amazon is to e-retail what Google is to search or Coca-Cola is to beverages — a dominant force that has redefined its industry globally. As a company of firsts, it is no surprise that Amazon probably launched the first-ever mobile app for buyers by an eCommerce company in 2011. Redefining experiences and pioneering benchmarks, Amazon utilizes sustained leverage on value addition via new features with its m-commerce strategy. 

• Annual Revenue: $514 billion 
• Headquarters: Seattle, USA

2. Alibaba 

Founded by Jack Ma in 1999, Alibaba is a powerhouse that has reshaped B2B eCommerce on an international scale. It has a similar scale and influence as Amazon, albeit in the B2B eCommerce space. However, its B2C app, Aliexpress has driven significant growth for the Hangzhou-based eCommerce behemoth. 

• Annual Revenue: $128 billion 
• Headquarters: Hangzhou, China

3. Taobao 

Another marketplace app from China, Taobao, deserves special mention due to its extensive use of mobile features. It has integrated social commerce and live streaming into its mobile platforms, capitalizing on the rise of the internet boom in China. The app’s innovative strategy capitalizes on the key advantage of mobiles, as discussed: their inseparable roles in people’s everyday lives. Taobao is also owned by Alibaba. 

• Annual Revenue: $11.3 million
• Headquarters: Hangzhou, China

4. ASOS 

Founded in 2000 by Nick Robertson, ASOS is an eCommerce disruptor that redefined the shopping experience for young, fashion-forward consumers. The fashion marketplace engaged consumers with intuitive and personalized shopping experiences, possibly largely due to its use of mobile features. It allowed users to browse, save items, and purchase directly through their marketplace apps. 

• Annual Revenue: £3.5 billion
• Headquarters: London, UK

5. KFC 

Although in a completely different industry, KFC is a use case of a marketplace. There are several KFC franchisee stores just like sellers on Amazon. These are all aggregated under the KFC brand. While the KFC marketplace app has several intuitive features like customizing orders, payment, and pickup/delivery options, its use of mobile features like Geolocation to give buyers personalized promotional offers ― has driven significant growth for the company. 

• Annual Revenue: $31.8 billion
• Headquarters: Louisville, Kentucky, USA

Popular Niches in which you can create Marketplace App

eCommerce largely has benefited significantly through mobile commerce. But some sectors have had significant leverage over others. This is due to multiple factors, but primarily these niches have products ideally suited to mobile shopping. Let’s see which are these niches. 

1. Downloadable digital products 

eBooks, music, digital creatives, and more, the downloadable digital products market is booming. It is another niche that creators need ease of access. A marketplace app draws in a large consumer base, adding global accessibility. 

Examples: Envato, Gumroad. 

2. Thrift marketplace 

Due to increasing demand for sustainable and eco-friendly products, thrift marketplaces have gained significant traction. To add to it, they add financial value from the buyers also. This shift has created a booming market for thrift marketplace apps, where buyers and sellers can exchange pre-loved items with ease. This is another industry naturally suited to marketplace apps. Mobile phones with a camera and handy nature allow users to easily upload the products to be sold. 

Examples: Depop, Mercari. 

3. Health and wellness

Another lifestyle niche, health and wellness naturally connects with people. The convenience added by mobile apps greatly enhances the buyer’s ability to order their desired products at any time suited to them. 

Examples: Decathlon, Gymshark, Notino 

4. Grocery delivery 

Online grocery shopping is another on-demand niche that can benefit from a mobile-first strategy. Grocery is one of the product categories that is required instantly, and many times without proper planning. Marketplace apps add convenience with ease of accessibility. 

Example: Instacart, DoorDash. 

5. Fashion 

Fashion connects with consumers’ needs. Fashion shopping engages them ― and as an eCommerce niche, it has outperformed every other niche. Moreover, as Taobao has demonstrated, if mobile apps add further engagements, this niche benefits largely from fashion apps. 

Examples: ASOS, FarFetch, StockX, Zalando. 

Different Types of Marketplace Apps 

Marketplace apps are not all the same. On the contrary, they vary greatly. In fact, each marketplace app is built differently and serves its distinct purpose. Let’s take a look at different types of marketplace apps. 

Native Mobile Apps

Native mobile apps are dedicated mobile apps. These are meant to be installed on mobile devices. Moreover, to use these apps the user taps on them. The app launcher launches these apps to be run on the mobiles. These can only be used on mobile devices, and are developed exclusively either for Android or the iOS ecosystem. These apps are developed using the platform’s native programming languages—Swift or Objective-C for iOS and Java or Kotlin for Android.

Web Apps

Web apps run on the web browsers of the device. These are not installed on the device but are rather hosted on a server or on the cloud. Apart from just mobile devices, these can be accessed on a range of devices including tablets, desktops, and laptops. These are built with HTML, CSS, JS, Python, PHP, and others. To uncomplicate things, web apps are simply dynamic eCommerce websites that you surf on a browser by typing the address of the website. 

PWA (Progressive Web Apps) 

PWA is a contemporary solution that combines the positive aspects of both native mobile apps and web apps. While they can be installed on the device of the user, they are still lightweight as web apps but are versatile like native mobile apps. They are based on the same technologies as web apps, but then are wrapped in a native shell to enable distribution like a native app. 

Different types of Marketplace Apps for Specific Business Models

Next, analyze the different types of marketplace apps. From the outset, Amazon, Alibaba, and Etsy are all marketplace apps. But fundamentally they are different in the way business is conducted. This affects nuanced distinct differences in each of these types of marketplace apps. So to build a marketplace app, understanding these types will be vital. Let’s discover the different types of marketplace apps. 

1. B2C marketplace app (e.g. Amazon)

A B2C marketplace is an eCommerce business where the buyers are the end consumers. So it is a marketplace where end consumers buy from third-party sellers and the eCommerce operations are managed by the Admin. Apps for a B2C marketplace are B2C marketplace apps. 

2. B2B marketplace app (e.g. Alibaba) 

The key difference between a B2C and B2B marketplace is that in the latter the buyers are businesses. These can be wholesalers, brand retailers, manufacturers, distributors, or any other business.  So it is a marketplace where businesses procure their requirements from other businesses and the eCommerce operations are managed by the Admin. Apps for a B2B marketplace are B2B marketplace apps. 

3. C2C marketplace app (e.g. Etsy) 

A C2C marketplace is a digital ecosystem where consumers buy from other consumers, hence the name consumer 2 consumer (C2C). In this marketplace, the same person can choose to be a buyer or a seller. As a seller, he can sell products to other buyers, and as a buyer, he can purchase products from other sellers. Apps for a C2C marketplace are C2C marketplace apps. 

As you have observed, there is a difference between participating entities, and hence their needs differ. The marketplace app needs to be developed to cater to the varying needs of the participating entities on the marketplace. 

Top 15 Features to Look for in a Multi Vendor Marketplace App 

The success of your marketplace app depends on how effectively the users carry out their shopping activities. This will create indelible experiences. And these experiences are pivotal to customer loyalty and the success of the brand. Hence, deciding the right mix of features in your marketplace app is key. Let’s discuss the top features to look for in a marketplace app. 

1. Easy Login 

Login is quintessential to a personalized and secure buying process, at the same time it adds an unwanted step to the buyers’ journey. Add faster login methods like OTP-based and social media login to allow users to quickly commence their shopping journey. 

2. UI/UX

How the users interact with your marketplace app, impacts conversions, and creates long-term brand equity. It is pivotal to include an engaging UI/UX in your marketplace app. Ensure that the user journey is frictionless and the workflows in your marketplace app are logically coherent and intuitive. 

3. Product/Shop Highlights 

A plethora of products and shops in a marketplace can overwhelm buyers, delaying the decision-making process. Elements like badges, ribbons, and others help to highlight the products or shops on the marketplace app, assisting buyers in making decisions, and in the process also rewarding the better-performing products. 

4. Voice Search 

Mobile devices enhance the number of ways users interact with their devices. Due to the availability of more versatile and multi-faceted hardware, the possibilities multiply. Voice search is a direct outcome of this. It offers the users an efficient way to get to the desired product. 

5. Global Search 

Conversion success depends on how quickly buyers get to the desired products/services on the marketplace apps. Longer wait times lead to cart abandonment. That said, global search fosters a quicker browsing experience. 

6. Geolocation 

A key feature that catalyzes success for marketplace apps, geolocation allows the buyers to search for the products that can be delivered specifically to their location. With personalized results, order shipping and promotions also get a boost. 

7. Easy-to-apply filters 

Buyers want to narrow down their choices quickly and find relevant products without hassle. Easy-to-apply search filters help streamline the process, reducing the time spent browsing. By allowing users to filter results based on criteria like price, category, ratings, and availability, search filters streamline the buying process. 

8. Wishlist 

A buyer journey may not always lead to a successful purchase. However, at the same time, it does not mean that the buyers are no longer interested in the products. Allow the buyers to add products to a wishlist that they can come back to and order. 

9. Multiple Payment Methods 

Buyers’ preference for making payments varies. Include multiple payment methods to assist buyers in checkout with a payment method of their choice. These can include cash on delivery, bank transfers, card payments, eWallets, and more. 

10. Seamless Checkout 

At the checkout stage, the buyer has already started anticipating completing the shopping. Too many steps add frustration and lead to abandonment. On the contrary, seamless checkout streamlines the transaction, leading to higher conversions. 

11. Comprehensive Review Capabilities 

Adding product reviews engages the buyers to participate and interact with other buyers. Comprehensive review features like added parameters and the option to upload images, significantly enhance this engagement. 

12. User Account Panel 

Give the buyers a personalized space within the marketplace app allowing them to view and analyze their shopping activities. 

13. Push Notifications 

This feature opens up a communication channel between the business and the buyers. This can be used for promotions, offers, key announcements, and other pivotal communication. Additionally, it also gives the business a tool to foster customer retention. 

14. Multi-lingual and Multi-Currency 

A change of language and currency can be a major roadblock for global operations. Add features like multilingual and multicurrency to make it easy for your business to scale globally, and reach buyers beyond geographical borders. 

15. Discount Coupons and Rewards 

Value shopping remains one of the key motivators, pivotal to the increasing footprint of the eCommerce industry. Giving out discount coupons and rewards augments engagement while also giving the business a key strategic tool to foster customer retention. 

With knowledge of the top 15 features to look for in your marketplace app, learn the steps to build your marketplace app. 

Steps to Build Your own Multivendor eCommerce Marketplace App

The best approach to a process is adopting a systematic approach. If you break down the process of launching your app and follow a methodical approach, the result will be more organized and efficient. Here’s how you can structure the process:

1. Research and Planning: 

To start things, initiate the first step, which is research and planning. This involves thoroughly understanding the market you are about to enter ― i.e. understanding the target audience and their needs and the ongoing industry trends. Try to identify gaps in the market currently ― whether there are unaddressed customer needs, or the existing competitors are leaving behind unsatisfied buyers. Defining clear business objectives and gathering technical requirements will guide your development team in creating a product that aligns with market demands. 

2. Competitive Analysis

Next, understand the existing competition in the market. To do this, conduct a thorough competitive analysis. Note down their strengths and weaknesses with a SWOT analysis or a pestle approach. Evaluate the features that they offer on the marketplace app, pricing strategy followed, and learn their user feedback. With this information, you will be able to gather differentiation points for your market inroads.  

3. Best-Suited Mobile App Development Approach

There are two popular ways to build a marketplace app. Let’s learn which are these below: 

Custom Development: The first approach is to build the app from scratch. Either you hire developers in-house, from a development partner, or outsource the entire project to a development company. Building the marketplace app from scratch means from requirement gathering to building and then testing, the whole development process is completed from the ground up, leading to an investment of considerable time. Since development man-hours means money, this process is resource intensive as well. 

Using Turnkey Marketplace App Solutions: The way around is relatively much simpler. Since fundamentally eCommerce shares some underpinnings, pioneered by popular market leaders and adopted by the rest of the competition. For instance, the features shared in this blog. The leading turnkey marketplace app solutions are built using a template adopted by popular players. These solutions let you launch a marketplace app for the Play Store/Apple Store in a considerably short time and undercut the need for resources significantly also.  

4. Build an MVP

Minimum Viable Approach or an MVP approach as coined by thought leader Eric Ries is when a business decides to launch a fully working but scaled-down version of its final product in the market. This is done to gain feedback from the early adopters and identify pivot points if necessary. In this step too, you have an advantage with the turnkey marketplace app, as the leading solutions are finished products, so you do not have the inhibitions of launching a lesser app with them.  

5. Launch the Mobile App in the Market

Once you are ready with your apps, you proceed to launch them. 

This process includes a meticulous marketing strategy, app store optimization (ASO), and initiatives for successful customer onboarding. 

6. Marketing and generating awareness 

After the apps are launched, you move towards the marketing of your new marketplace apps. 

Ensure you leverage multiple marketing channels like social media, email campaigns, and partnerships to attract users. 

By following these 6 steps you have a blueprint to launch a marketplace app in the market 

How Much Does Marketplace App Development Cost 

Before getting ahead with launching your marketplace app, you will want to know how much marketplace app development costs. However, it is difficult to point one consolidated figure to this process. The reason is because of the variables involved. If say you choose the first approach of custom developing your marketplace app, you have the following variables: 

• The business requirements. 
• The extent of features and modules needed 
• The urgency of the project
• Expertise of the development team 
• Location of the development team 
• Hourly quoted rates by the development team.

These are variables that will be subjective for each business use case. Hence the final amount will vary greatly. 

However, if you choose the second approach of using turnkey solutions, you can get started instantly. Again since the costs are fixed for the best of these solutions, you have a predictable figure. For instance, leading turnkey solutions like Yo!Kart offer mobile apps with web apps for as low as $1999. Explore packages

Get Readymade Mobile Apps with Yo!Kart

A leading turnkey multi vendor solution, Yo!Kart has empowered 5500+ businesses globally to launch their multi vendor business. With versatile and multi-faceted solutions, Yo!Kart gives purpose-built capabilities to launch readymade marketplace platforms. With Yo!Kart, entrepreneurs to enterprises have a rich featured and highly capable product to instantly launch a marketplace. 

Yo!Kart also comes with turnkey, ready-to-launch white-label mobile apps for both Android and iOS software ecosystems. These apps come with a long list of wide-ranging features that have propelled popular players for market success. Features like frictionless UI/UX, global and voice search, geolocation, multiple payment gateways, unified account management, and a lot more give buyers an engaging shopping experience that fosters customer loyalty. 

Yo!Kart offers buyers apps for both the Android and iOS ecosystems.

Conclusion

Ever since the increasing popularity of mobiles, the eCommerce industry has skyrocketed to spread across the globe, pan industries. With their ubiquity, convenience, and a broader range of hardware capabilities, mobile phones allow eCommerce businesses to leapfrog success. 

To capture your eCommerce opportunity, you can consider launching marketplace apps for your online business. However, for success, you need to understand the best approach to launching your app. This guide to creating a marketplace app in 2025 gives you a blueprint for doing that. 

FAQ’s

Q 1. What is the marketplace model? 

Ans: The marketplace model involves three distinct participants i.e. Admin, sellers, and the buyers on the same platform. In this model, the platform is launched by an intermediary. They invite third part sellers to sell to buyers on the platform while they manage various eCommerce operations. 

Q 2. How to create a marketplace app easily and fast? 

Ans: The best approach to create a marketplace app quick and fast is by using a turnkey solution. Leading turnkey solutions like Yo!Kart offer native mobile apps with readymade capabilities for both Android and iOS ecosystems. 

Q 3. How long does it take to build a marketplace app? 

Ans: Since the business requirements and the capabilities of the development teams vary greatly, an exact figure is difficult to obtain and can range between a few months to maybe even years. However, if you choose to use leading turnkey solutions like Yo!Kart, you can even launch mobile apps as fast as within a month. 

Q 4. How to monetize my marketplace app? 

Ans: There are three popular ways to monetize the marketplace app: 

• Commissions: By deducting commissions on each transaction on the marketplace. 
• Subscription Plans: By introducing subscription plans for the sellers. This is in exchange for additional services. 
• Advertisements: Marketplaces also have the opportunity to monetize advertisements on the marketplace platforms. 

These are the three popular ways marketplaces make money.