What Is a Marketplace App?
A marketplace app is a platform that connects two distinct user groups—buyers and sellers—facilitating transactions between them. Unlike traditional e-commerce where one company sells products, marketplaces enable multiple independent sellers to reach customers through a single platform. According to Sharetribe research, this two-sided model creates powerful network effects where more sellers attract more buyers, and vice versa.
The most successful marketplaces include household names like Airbnb ($82.78 billion gross booking value in 2024), Uber ($162.7 billion gross bookings in 2024), and Etsy ($12.72 billion GMS in 2024). These platforms demonstrate the massive scale possible with the marketplace model—and today, you can build similar apps using no-code app builders and AI-powered development tools.
Traditional E-Commerce
- Single seller, multiple buyers
- Company owns all inventory
- Direct payment to business
- Simpler payment processing
- Full control over products
- Examples: Nike.com, Apple Store
Marketplace App
- Multiple sellers, multiple buyers
- Sellers own their inventory
- Split payments with commission
- Complex payment routing needed
- Curation and quality control
- Examples: Airbnb, Uber, Etsy
Types of Marketplace Apps
Marketplace apps come in various forms depending on what is being exchanged. Understanding your marketplace type helps define the features you will need. Here are the main categories with real-world examples and their key characteristics.
Product Marketplace
Etsy, eBay, Amazon
Physical or digital goods sold by multiple vendors. Requires inventory management, shipping integration, and product categorization.
Service Marketplace
Upwork, Fiverr, TaskRabbit
Connects service providers with clients. Focuses on booking, scheduling, and skill-based matching with portfolio displays.
Rental Marketplace
Airbnb, Turo, VRBO
Temporary access to assets like properties or vehicles. Requires availability calendars, damage deposits, and check-in flows.
On-Demand Delivery
Instacart, DoorDash, Uber Eats
Real-time delivery of goods or services. Needs driver matching, live tracking, and time-sensitive order management.
Peer-to-Peer (P2P)
Poshmark, Facebook Marketplace
Individual-to-individual transactions, often for secondhand goods. Emphasizes trust, user verification, and local pickup options.
B2B Marketplace
Alibaba, ThomasNet, Faire
Businesses selling to other businesses. Requires bulk ordering, RFQ systems, and enterprise-level invoicing.
Marketplace Giants: 2024 Transaction Volume
Gross Booking Value
492M nights booked
Gross Bookings
180M monthly users
Gross Merchandise Sales
Handmade & vintage focus
Sources: Business of Apps, VenueLabs, Marketplace Pulse
Essential Marketplace Features
Building a successful marketplace requires specific features that differ from standard apps. According to Idea Usher, the right feature set creates trust between parties, facilitates smooth transactions, and enables platform growth. Here is what you need to include.
Marketplace Feature Planner
Select features to see your marketplace complexity level
User Management
Listings & Search
Payments & Transactions
Communication
Tip: You are missing 11 essential features. Most successful marketplaces include all essential features at launch.
User Management
Buyers, sellers, and trust
Dual User Profiles
Separate interfaces for buyers and sellers with role-specific dashboards
Seller Onboarding
KYC verification, tax information collection, and payout setup
Ratings & Reviews
Two-way review systems to build trust between parties
Verification Badges
Identity verification, business verification, and trust signals
Listings & Discovery
Help buyers find what they need
Rich Listings
Multiple images, detailed descriptions, pricing options, and availability
Advanced Search
Filters by category, price, location, ratings, and custom attributes
Smart Recommendations
AI-powered suggestions based on browsing history and preferences
Categories & Tags
Hierarchical categorization and tagging for better organization
Transactions & Payments
Secure, split, and automate
Split Payments
Automatically divide payment between seller, platform commission, and fees
Escrow/Hold Funds
Release payment to seller only after successful delivery or completion
Commission Management
Configurable take rates per transaction, category, or seller tier
Seller Payouts
Automated payouts to seller bank accounts with detailed statements
Payment Processing & Escrow
Payment handling is the most critical—and complex—aspect of marketplace development. Unlike simple e-commerce, marketplaces must split payments between multiple parties, hold funds in escrow, and manage payouts to thousands of sellers. According to Stripe, their Connect platform processes over 500 million API requests daily for marketplaces in 47+ countries.
Marketplace Payment Flow
Stripe Connect Features
- Split payments automatically between parties
- Delayed payouts for service verification
- Multi-currency support (135+ currencies)
- Automated seller onboarding & KYC
- Tax reporting and 1099 generation
- Chargeback and dispute management
Typical Commission Rates
No-Code Payment Integration
With Natively, you can integrate Stripe Connect through Supabase edge functions without writing payment code. The AI generates the necessary backend logic for split payments, commission management, and seller onboarding—all configurable through natural language prompts. This approach, combined with Supabase integration, handles the complex payment orchestration that traditionally requires specialized fintech developers.
Building Your Marketplace Without Code
The global no-code market is projected to hit $21.2 billion in 2026, with forecasts reaching $187 billion by 2030. For marketplace builders, this means unprecedented access to tools that previously required large development teams. According to industry research, low-code platforms are growing at 65% CAGR, enabling 40-60% reduced development costs.
| Platform | Best For | Native Mobile | Code Export | Starting Price |
|---|---|---|---|---|
| NativelyAI-Powered | Native marketplace apps | $5/mo | ||
| Bubble | Complex web marketplaces | — | — | $69/mo |
| Softr | Airtable-based directories | — | — | $49/mo |
| Sharetribe | Rental & service marketplaces | — | — | $99/mo |
| Glide | Simple internal marketplaces | — | $99/mo |
Building a Marketplace App with AI
Describe Your Marketplace
Tell the AI what kind of marketplace you want to build. Be specific about your niche, user types, and core transaction flow.
Build a local services marketplace where homeowners can find and book verified contractors for home repairs. Include contractor profiles, service listings, availability calendars, and secure payments.
AI Generates Your App
The AI creates both buyer and seller interfaces, database schemas, authentication, and payment integration using React Native and Supabase.
Generated: HomeScreen, ServiceListings, ContractorProfile, BookingFlow, PaymentScreen, ReviewSystem, MessagingChat, and AdminDashboard components.
Refine Through Conversation
Iterate on the design and features through natural language prompts. Add features, adjust layouts, and customize the user experience.
Add a map view showing nearby contractors. Include an urgent booking option with premium pricing. Add before/after photo uploads for completed jobs.
Test and Deploy
Preview on real devices, then deploy to both iOS App Store and Google Play with one-click publishing through Expo Launch.
Use the built-in preview to test on iPhone and Android devices. When ready, submit for app store review directly from the platform.
Launch & Growth Strategy
The biggest challenge in marketplace development is the chicken-and-egg problem: buyers need sellers to find value, but sellers need buyers to justify joining. According to Sequoia Capital, solving this requires strategic thinking about which side to prioritize first.
Supply-First Strategy
Focus on recruiting sellers first. Create value for them even before buyers arrive by offering tools, exposure, or subsidized fees.
- Reach out to existing sellers from other platforms
- Offer zero commission for early adopters
- Provide seller tools that add value independently
- Feature top sellers prominently at launch
Example: Etsy recruited crafters by offering better tools than eBay
Demand-First Strategy
Build buyer demand first, then use that audience to attract sellers who want access to ready customers.
- Create content that attracts your target buyers
- Build email lists before marketplace launch
- Partner with influencers in your niche
- Use waitlists to demonstrate demand to sellers
Example: OpenTable guaranteed restaurants customers before launch
Narrow Geographic Focus
Launch in one city or neighborhood first. Achieve density before expanding to new markets.
- Choose a market you understand deeply
- Achieve 80%+ seller coverage in target area
- Create word-of-mouth through local density
- Expand only when current market is saturated
Example: Uber launched in San Francisco only for 3 years
Single-Player Mode
Provide value to one side even without the other. Let sellers use the platform as a standalone tool.
- Build inventory management for sellers
- Create booking tools that work standalone
- Offer analytics and insights for free
- Add marketplace matching as bonus feature
Example: Yelp started as review site before adding booking
Key Marketplace Success Metrics
According to Andreessen Horowitz, the most important—and often ignored—metric is GMV retention. On average, marketplaces see supply-side GMV retention of 80-95% in the first three months, but this often drops to 45-50% by month 12. Tracking the right metrics early helps identify problems before they become critical.
GMV (Gross Merchandise Value)
Total value of all transactions on your platform
Healthy: 20%+ monthly growth in early stage
Formula: Total Transaction Value × Number of Transactions
Take Rate
Percentage of GMV kept as platform revenue
Industry average: 5-25% depending on category
Formula: Platform Revenue ÷ GMV × 100
Liquidity
How effectively supply meets demand
Target: 50%+ of listings result in transactions
Formula: Successful Transactions ÷ Total Listings
CAC (Customer Acquisition Cost)
Cost to acquire each new user (buyer or seller)
Aim for LTV:CAC ratio of at least 3:1
Formula: Marketing Spend ÷ New Users Acquired
NRR (Net Revenue Retention)
Revenue growth from existing customers
Top performers: 100%+ NRR
Formula: (Starting MRR + Expansion - Churn) ÷ Starting MRR
Time to First Transaction
How quickly new users complete their first purchase
Optimize for under 24 hours for new buyers
Formula: Median time from signup to first transaction
Ready to Build Your Marketplace?
Turn your marketplace idea into a native iOS and Android app. Describe your concept and let AI generate buyer and seller interfaces, payment integration, and all the features you need.
Frequently Asked Questions
E-commerce apps involve a single seller selling to multiple buyers, while marketplace apps connect multiple sellers with multiple buyers on a single platform. Marketplaces require additional complexity including multi-vendor management, split payment processing, seller onboarding, commission structures, and dispute resolution systems. Examples include Airbnb (property rentals), Uber (ride services), and Etsy (handmade goods).