Plan Before You Build Your Online Marketplace (Part 2)

Before you spin up pages and plugins, map the groundwork. Good planning saves rework and protects your runway. Use this guide to decide your business model, tackle the supply–demand challenge, and pick the right technology path for your online marketplace.

1) Choose a business model that funds growth

Your online marketplace needs predictable revenue. Common options:

• Commission model
  
  • Earn a % on each transaction
    
  • Aligns your revenue with GMV
    
  • Lower barrier for new sellers
    
• Membership / subscription
  
  • Sellers pay a recurring fee for access and exposure
    
  • Works when sellers transact frequently
    
  • Gives you steady MRR
    
• Listing fee
  
  • Sellers pay per listing (great for classifieds/directories)
    
  • Useful when activity is occasional but listing visibility is the value
    
• Hybrid approach
  
  • Mix and match (e.g., base subscription + lower commission)
    
  • Tailor by seller tier, category, or seasonality
    

Related reads:

• Validating your idea → start here before model lock-in: Click to Read
  
  
• WCFM vs Dokan (selection guidance) → Click to Read

2) Solve the “which side first?” problem

Two-sided markets must seed both sellers and buyers. Practical routes:

• Sellers first
  
  • Early incentives: lower commissions, fee holidays, featured slots
    
  • Curate supply so buyers land on real inventory
    
  • Watch CAC: incentives cost money—time-box them
    
• Buyers first
  
  • Create value even before supply is full (content, reviews, guides)
    
  • Offer launch discounts or referral perks
    
  • Use waitlists to signal demand to sellers
    
• Niche both-sides
  
  • Start with a tight community (shared interests, geography, profession)
    
  • Outreach in the same channels to attract both cohorts
    
  • Expand adjacently once the flywheel turns
    

Tip: Layer Personalized Recommendations to convert early traffic better:

3) Pick your technology path (with trade-offs)

A) Build from scratch

Good for: unique workflows, heavy customization, long-term control

• Pros
  
  • Full flexibility, performance tuning
    
  • Own your code and data
    
• Cons
  
  • More time, higher upfront cost
    
  • Requires strong engineering + ongoing maintenance
    

B) Hosted SaaS marketplace

Good for: fastest MVP, lean teams, predictable ops

• Pros
  
  • Quick to launch, maintenance handled
    
  • Integrations are readily available.
    
• Cons
  
  • Limited customization and code access
    
  • Monthly fees; data portability can be tricky as you scale
    

C) Open-source / on-premise (e.g., WordPress + WCFM)

Good for: balance of speed, cost, and flexibility

• Pros
  
  • Lower recurring cost, own your data
    
  • Large plugin/theme ecosystem; huge talent pool
    
• Cons
  
  • You manage updates, hosting, and performance
    
  • Light development expertise still needed
    

Helpful guides (WordPress + WCFM path):

• Upgrade to WCFM Ultimate → Click to Read
  
  
• WCFM Marketplace Essentials → Click to Read
  
  
• WooCommerce Frontend Manager Guide → Click to Read

Quick decision checklist

• Model
  
  • Do we need recurring revenue (membership) or GMV-linked upside (commission)?
    
  • Will a hybrid reduce risk at launch?
    
• Go-to-market
  
  • Which side is easier to seed first, and why?
    
  • What incentive (or content) will lower friction?
    
• Tech
  
  • Do we value speed (SaaS), control (scratch), or balance (WordPress)?
    
  • What’s our plan for performance, data ownership, and future migrations?
    

What to do next

• Validate assumptions with a small cohort
  
• Finalize your monetization model + fee structure
  
• Choose tech and scope an MVP
  
• Set up analytics + event tracking from day 1
  
• Draft seller onboarding and buyer activation playbooks
  

Need help mapping your stack or migration plan?

👉 Talk to ExpressTech Software

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Related Blog's

• WCFM (Ultimate upgrade)
  
• WCFM Marketplace (guide)
  
• WooCommerce Frontend Manager guide
  
• WCFM vs Dokan comparison
  
• Validating your marketplace idea (Part 1 theme)