Article | 6 min read

Build a Website like eBay: Create a Used Goods Marketplace

Build a Marketplace
Author
Manav Gupta
Editor
Protim Bhaumik
Published
June 24, 2024
Last Updated
December 12, 2024

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eBay has transformed how individuals and businesses trade pre-owned goods, pioneering the resale and auction model. If you're intrigued by the potential of this model or looking to launch a platform catering to niche markets, developing a similar marketplace could be the ideal solution.

In this article, we'll look at: 

  • Market opportunity—There's space for vertical marketplaces (focusing on specific used goods categories) to build trust with consumers.
  • Target industries—Used goods marketplaces do well in electronics, fashion, furniture, and sports equipment.
  • Business pain-points—Use clear descriptions, real product images, reviews, and buyer protection to build trust.
  • Cost—Building a marketplace involves development, design, functionality, hosting, marketing, and maintenance costs.
  • Steps to build—Choose a cart platform like Shopify, integrate Shipturtle, set up your marketplace, enable C2C functionality, launch and promote.

1. The rise of vertical used goods marketplace

Used goods marketplace as a business model aligns with the transformative shift in consumer behavior.

While global giants like eBay, Craigslist, and Gumtree, or regional providers like OLX and Cars24, have gained substantial traction, the field remains ripe for innovative, technology-driven enhancements.

The existing landscape is dominated by horizontal marketplace platforms with a range of products spanning various categories (eBay-like websites). An untapped opportunity lies in the potential of a vertical marketplace. It could specifically address the common barrier to adoption: consumer hesitancy surrounding the quality of pre-owned items.

While consumer mistrust poses a significant hurdle for the widespread acceptance of marketplaces selling used goods, building niche stores tailored to specific industries emerge as a potential solution. Subsequently, the rise of specialized used goods stores (vertical marketplace) shows how focusing on specific types of items can build more trust with buyers.

For example, eNDe project and Second Chance Outfitters are prime examples of successful vertical used goods marketplaces. Shipturtle powers them necessary multivendor functionalities—vendor dashboards, product listings, order management, payouts and more.

categories for used goods marketplace
Image: Top 10 industries embracing pre-owned model

The affinity for used goods or second-hand marketplaces is spread across industries - electronics, fashion, automotive, furniture, and sporting equipment - recognizing the inherent value these e-commerce platforms like eBay offer.

Shipturtle integrated “Make an Offer” feature that embeds into customer-vendor live chat feature for sellers to accept or reject for loved marketplace brand Bazaa. Additionally, we helped them set up options for local pickup and shipping.

3. Top pain points to address when building marketplaces like eBay

Making your used goods marketplace successful online requires a well-defined strategy and execution across various aspects. Here are some top strategies to consider:

  1. Vendor management
  2. Trust-centric measures
  3. Marketplace business model

I. Vendor management

Managing a diverse group of sellers can be complex. Vendors often have different levels of experience, product quality, and customer service. Ensuring consistency while scaling vendor onboarding and training is crucial. The right tech can build real-time vendor dashboards to automate product listings, inventory sync, order fulfillment, and even shipping.

II. Trust-centric measures

Buyers need assurance that the items they purchase are genuine, accurately described, and will be delivered on time.

You can start by providing detailed product descriptions, and real photos, highlighting any defects, and displaying honest reviews and seller info. You can even incorporate features like verified reviews, robust return policies, and secure payment systems to instill confidence in your platform.

Additionally, you may simplify the return process for customer satisfaction.

III. Marketplace business model

The choice of marketplace business model is highly relevant to the category of products that are being dealt with:

  • High-consideration products such as laptops, musical instruments, and automobiles come usually within the B2C model where quality checks are performed by the business before putting up the product for sale.
  • Consumer-to-consumer model is generally for low-consideration products such as electronics, apparel, clothing, and accessories.

The applications connect the buyer and supplier where they can negotiate the costs depending on the condition of the product.

Must-have features of eBay

While auctions are a well-known aspect of eBay, it's important to understand that the platform operates as a marketplace, facilitating transactions between buyers and sellers. eBay can function according to various models, including:

  • C2C (Consumer-to-Consumer): Individuals sell directly to other individuals.
  • B2C (Business-to-Consumer): Businesses sell products to consumers.

eBay generates revenue through a variety of means, including transaction fees on the final selling price of most items, listing fees for listing their items on the platform, or through subscription services.

For buyers on eBay:

  • eBay boasts a vast selection of items, encompassing both brand-new products and a treasure trove of pre-owned merchandise.
  • Experience bidding wars or opt for the convenience of fixed-price listings. eBay caters to diverse buying preferences, allowing you to snag the perfect item at the right price.
  • Enjoy peace of mind with secure payment gateways and eBay's buyer protection programs. Shop with confidence, knowing you're protected in case of issues with your purchase.

For sellers on eBay:

  • You get vast exposure for your merchandise, giving you the potential to connect with a broad buyer base when you sell on eBay.
  • Choose between auction-style listings or fixed-price options to suit your selling strategy.
  • Benefit from a suite of seller tools designed to streamline your experience. Manage listings, track sales, and receive feedback – all within a user-friendly interface. However, eBay charges sellers feeds.
  • Established sellers can create customized storefronts, gaining brand recognition and buyer loyalty within the eBay marketplace.

While the distinction between horizontal and vertical used goods marketplaces often revolves around backend integration with vendors, the significance lies in their capacity to cultivate sustainable practices while nurturing vendor relationships.

4. How much does it cost to build a website like eBay?  

Building a marketplace like eBay involves various development stages and ongoing expenses:

For design

  1. User Interface (UI) and User Experience (UX) Design: Creating a user-friendly and visually appealing interface - $5,000 - $25,000+
  2. Graphic Design: Designing logos, icons, and other visual elements - $2,000 - $10,000+

For development

  1. Platform Selection: Choosing a pre-built marketplace solution or building from scratch (for 5,000 orders per month) - $2,500 per month
  2. Development Time: Hours spent on coding, customization, and integration - 1-2 weeks (varies based on complexity)
  3. Developer Rates: Hourly or project-based cost depending on experience level - $30 - $200+ per hour

For functionality

  1. Core Marketplace Features: Listing management, bidding system (if applicable), shopping cart, secure payment processing, etc - $360 per month
  2. Advanced Features: Seller storefronts, communication tools, social features (ratings, reviews), etc - $100 per feature

Ongoing costs

  1. Web Hosting: Cost of maintaining the website's server space - $100 - $1,000+ per month
  2. Payment Processing Fees: Transaction fees are charged by payment gateways - 2-5% per transaction (average)
  3. Maintenance and Updates: Addressing bugs, adding new features, and keeping software secure - $500 - $5,000+ per month
  4. Marketing and Advertising: Attracting buyers and sellers to the platform - Variable (depending on strategy and budget)

Building a marketplace like eBay using Shipturtle

i. Shopify store or any CMS platform

ii. Shipturtle app and its open APIs

That's how simple it is to create a multivendor marketplace or platform with Shipturtle

Moreover, it is way more cost-effective with pre-built 400+ marketplace workflows and at the same time, flexible to customize based on your unique requirements!

5. Steps to create an eBay-like marketplace for used goods using Shipturtle

While Shipturtle doesn't offer a direct website creation tool, it can integrate with Shopify to power the backend functionality of your used goods marketplace. Here's a breakdown of the steps involved:

I. Choose an e-commerce cart or website builder:

While Shopify is a popular choice, several other e-commerce platforms can power your used goods marketplace:

WooCommerce (Open-Source): Highly customizable and integrates seamlessly with WordPress websites if you already have one. Generally considered a more affordable option (though plugin costs can add up). Moreover, you require technical knowledge for setup and maintenance. Additionally, Security updates and managing plugins can be time-consuming.

BigCommerce (Hosted Platform): Scalable and feature-rich platform suitable for high-volume marketplaces. Offers built-in features for SEO, marketing, and omnichannel selling. Excellent built-in security features and PCI compliance. However, it can be more expensive than Shopify or WooCommerce, especially for larger stores.

Wix Ecommerce (Website Builder): Extremely user-friendly website builder with drag-and-drop functionality. Ideal for beginners with no coding experience. However, offers options to build a custom store and thus, is not scalable for very large marketplaces.

Squarespace Ecommerce (Website Builder): Suitable for smaller marketplaces with a focus on aesthetics. It lacks some advanced e-commerce features compared to dedicated platforms and offers limited app integrations.

Why Shopify is the best choice:

Shopify is a strong contender for several reasons:

  • Ease of use: Known for its user-friendly interface and intuitive setup process.
  • Scalability: Can handle large product volumes and traffic growth as your marketplace expands.
  • App store: Offers a vast app store with thousands of extensions for adding specific functionalities to your marketplace.
  • Vast developer ecosystem: You can find instant support and agency help around the globe who specializes in Shopify development.
  • Payment processing: Includes built-in support for a wide range of payment gateways for smooth transactions.
  • Security: Provides a secure platform with PCI compliance and fraud prevention measures.

II. Integrate Shipturtle:

  • Install Shipturtle from the Shopify app store.
  • This will enable features like product listing management, C2C functionality, reverse bidding online auction functionality, order fulfillment automation, shipping integrations, commission management, and payout management.

III. Set up your marketplace:

  • Product Categories: Define relevant categories for used goods on your platform. Consider subcategories for better organization (e.g., clothing > men's clothing > shirts).
  • Listing Creation: Establish guidelines for sellers on how to list items. This includes required details like product descriptions, clear photos, and starting bid prices (for auctions).
  • Payment Processing: Set up a secure payment gateway for transactions between buyers and sellers. Popular options include Stripe and PayPal.
  • Fees and Commissions: Determine your revenue model. Will you charge transaction fees, listing fees, or a combination? Ensure it's competitive and communicated to sellers.
  • Shipping: Decide on shipping options. You can offer seller-managed shipping or integrate with 200+ shipping carriers through Shipturtle for automated label generation and shipment tracking.

IV. Enable C2C functionality

Building an eBay-like website that allows users to list pre-loved items requires you to enable C2C functionality.

However, if you're considering making a website like eBay for high-value products like laptops, musical instruments, and automobiles, you might go with the default B2C product, rental, or booking module.

features for used goods marketpalce
Image: Essential features to have in a used goods marketplace

Learn how you can onboard suppliers from any platform using Shipturtle.

If you're on the hunt to close a tech stack for your marketplace, consider Shipturtle.

100%

Go live on Shopify in less than 48 hours using our out-of-box multivendor functionalities. Our solution offers 400+ pre-built workflows, including vendor management, product listings, order processing, and payment management. The app is configurable, has no code & boasts 1000+ integrations!

Ending notes

Shipturtle can integrate with Shopify to power the backend functionality of your used goods marketplace. You can even customize it to include reverse bidding features or auction-type features on your second-hand marketplace website.

Book a demo with Shipturtle to turn your business ideas into a successful online marketplace similar to eBay.

Get advanced shipping, configurable vendor management, payment features, and more. Install Shipturtle today from the Shopify App Store and enjoy a free trial to experience its benefits firsthand.

Want to learn more about how Shipturtle can benefit your business? Book a personalized demo with our sales team.

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About The Author

Manav Gupta

Manav is a content curator and consultant at Shipturtle, with expertise in translating complex concepts into clear, everyday business language. He is a graduate engineer with well-read opinions that empower readers with actionable insights.