Revolutionizing Industries: Top 5 Marketplace Startups
Looking for a startup idea to inspire you in 2024? Why not consider developing the next top marketplace app? Let us introduce you to some of the top marketplace startups to get your creativity flowing!
There are many advantages to building your very own online marketplace startup. They’re highly scalable, guarantee recurring revenue, and you’re helping to support small businesses that might not be able to sell through their own websites!
If you’re looking to build your own marketplace app, it’s always good to get a little inspiration! Here are some of the world’s top marketplace startups, as identified by Similarweb.
Table of contents
Marketplace 1: Amazon
One of the most well-known and well-used companies in the world, Amazon sells a wide range of products in over 200 countries.
Founded by Jeff Bezos in 1994 (famously from his own garage), Amazon initially specialised in selling books. The company would receive an order, order the books from its suppliers, and then send the books to the customer. The business model worked well, and by the turn of the century, Amazon started to sell videos, toys, electronics, and games.
In 2000, Amazon Marketplace launched, making it easy for third-party sellers to sell their products under the Amazon umbrella.
An important lesson to learn from Amazon
One of the reasons that Amazon is so successful today is that it continues to grow and evolve, as well as learn from its mistakes.
Not all of the company’s ideas are successful; for example, Amazon tried to build its own auction site when eBay launched, with no success. However, many ideas, like the development of Amazon Web Services in 2002, set Amazon apart from its competitors.
Marketplace 2: eBay
eBay was launched in 1995 by Pierre Omidyar, a year after Amazon. It was originally known as AuctionWeb and was initially free for people to use. Omidyar only started charging people when his internet service provider started charging more due to the increased bandwidth.
The surge in demand for Beanie Babies in the late 1990s helped eBay grow – with the toys accounting for 10% of all listings in 1997.
Today, eBay sells to customers in over 190 countries. The marketplace startup is also responsible for the development of PayPal. eBay acquired PayPal in 2002 as a way for users to make and receive easy and safe payments, although the two companies parted ways in 2015.
An important lesson to learn from eBay
The rise of the eBay marketplace has shown the importance of ensuring a high-quality customer experience. The platform is dedicated to ensuring that both buyers and sellers have a positive experience on the platform, using reviews and other trust signals to build credibility,
Marketplace 3: Rakuten
Our third marketplace on the list of top marketplace startups is Rakuten. Founded in Japan by Hiroshi Mikitani in 1997, the platform was designed to operate like an online shopping mall, specialising in fashion, electronics, and home goods. Rakuten sells to over 30 countries and regions worldwide.
Rakuten has invested heavily in other businesses to expand its portfolio. The company has invested in Pinterest, operates a travel and golfing platform, and bought Ebates in 2014, a cashback scheme which has been absorbed under the Rakuten umbrella.
An important lesson to learn from Rakuten
Rakuten has been around for nearly 30 years and has stayed in business due to forging strong partnerships with other businesses, both in Japan and internationally. This has helped the marketplace expand its reach and offer a wider range of products.
Marketplace 4: Etsy
Etsy is the odd one out in this list as it is what is termed as a ‘vertical’ marketplace rather than a ‘horizontal’ marketplace.
What’s the difference? A horizontal marketplace place sells a wide range of products across a wide range of industries, while a vertical marketplace focuses on one specific sector. In this case, Etsy focuses on handmade and vintage items and is probably the most famous and profitable vertical marketplace in the world.
Etsy was founded in 2005 by Robert Kalin, Chris Maguire, Haim Schoppik, and Jard Tarbell as a way of selling the handmade goods they made online. The company acquired fashion marketplace Depop in 2021 and in 2022 generated $2.5 billion in revenue.
An important lesson to learn from Etsy
Even if you’re a smaller business, it’s essential to be confident and believe in what you do. While Etsy has a smaller target market than the other marketplaces on this list, it’s seen considerable success by acting like a larger business would.
Marketplace 5: Taobao
Taobao is a Chinese marketplace founded in 2003 by Alibaba (which we’ll look at later). Like Rakuten, it operates like an online shopping mall where small business owners, as well as individuals, can sell their products to customers.
Business owners can sell products through auctions, or at a fixed price.
An important lesson to learn from Taobao
Taobao has shown how essential it is to stand your ground in the face of adversity.
When eBay tried to launch in China, Taobao responded by offering free listings to sellers, encouraging them to keep using the platform. The move worked, and eBay ended up closing down its Chinese site, while Taobao flourished.
Bonus! Marketplace 6: Alibaba
We’ve included Alibaba on the list of top marketplace startups as it is one of the biggest marketplaces but has just fallen outside of the top five on this occasion.
Founded in 1999 by a collection of entrepreneurs, including Jack Ma, Alibaba is a Chinese-based B2B marketplace – meaning it specialises in businesses selling to other businesses. Alibaba’s sister store AliExpress launched in 2010, selling products internationally to both businesses and customers.
An important lesson to learn from Alibaba
Alibaba has shown the importance of growing and evolving with the times. Staying relevant can increase your chances of future success.
Initially just a B2B marketplace, the company has moved into the B2C and C2C sectors with AliExpress and Taobao, as well as launching online payment system Alipay.
Even more marketplaces for your consideration
All the marketplaces we’ve looked at in this article are the biggest, most used marketplaces in the world. However, there are many other successful marketplace startups too!
Launching a horizontal marketplace like Amazon or Taobao can be challenging, just as there is a lot of well-established competition. A vertical marketplace may mean fewer potential customers, but those customers are more likely to be loyal to your business.
Here are some of our favorite smaller vertical marketplaces for you to check out.
Craft marketplaces
- Faire. This marketplace’s unique selling point is that it specialises in selling to wholesale customers
- Not on the High Street. A UK-based marketplace, Not on the High Street offers hand-crafted and personalised items
- Redbubble. This marketplace lets artists sell their designs on a variety of different mediums like clothing, stickers, cushions, and canvases
- Spoonflower. A marketplace that specialises in wallpaper and fabric designed by independent artists
- Ten Thousand Villages. This marketplace specialises in artisan and sustainable crafts from all over the world
Customer to customer (C2C) marketplaces
- Cameo. Cameo is a marketplace that lets users request personalised video messages from over 40,000 celebrities
- Fiverr. This marketplace lets freelancers sell their skills to each other as well as to businesses. Services on offer include web development, voiceover work, copywriting, and graphic design
- The Music Bakery. The Music Bakery lets musicians sell their music. Customers can either buy one song for a set price or purchase a subscription
Fashion marketplaces
- ASOS. Established in 2000, this UK-based marketplace sells clothes and accessories worldwide
- Farfetch. A marketplace specialising in luxury clothing, Farfetch was founded in 2007 and operates worldwide
- GoTrendier. This second-hand clothing marketplace is based in Mexico
- Thrift Plus. A UK-based marketplace, customers send their second-hand clothing to Thrift Plus, who sell it for a proportion of the proceeds
- Zalando. Based in Germany and selling across Europe, Zalando specialises in shoes, fashion, and beauty
House sitting marketplaces
- Madpaws. An Australian marketplace, Madpaws partners pet owners with house sitters and dog walkers
- Meowtel. This marketplace specialises in cat-sitting services across several US states
- Trusted Housesitters. A global marketplace, Trusted Housesitters lets people find pet sitters and house sitters
Miscellaneous marketplaces
- Bookbub. A book discovery service, this marketplace helps readers find new books and authors, with personalised deals available
- Chemondis. This global marketplace makes it easy for businesses to buy chemicals online
- Funeral Marketplace. This German-based marketplace connects customers with funeral homes and other relevant suppliers. Beyond provides a similar service to the UK
- Goldex. Want to buy gold online? This marketplace will help you get the best price
- Kitmondo. This B2B marketplace is designed for businesses to buy and sell used machinery worldwide
- Koachee. This marketplace specialises in life coaching, connecting life coaches across the world with potential customers
- OpenSea. OpenSea is the world’s largest NFT marketplace, accounting for about 97% of all NFT sales. Find out more about developing your own Web 3.0 marketplace
- TaskRabbit. Need help with a DIY task or some gardening? This marketplace connects tradespeople with people in need of their services
Retail marketplaces
- Swappa. Swappa connects customers with each other to sell new and slightly used tech
- Temu. Founded in 2022, Temu sells heavily discounted lifestyle products
- Wish. Founded in 2010, Wish sells discounted products, offering a personalised experience for each customer depending on their search history
SaaS marketplaces
(Want to know more about setting up a SaaS marketplace startup? Check out this article: how to develop a SaaS marketplace app)
- SaaS Marketplace. A bit of a meta example: this platform is a marketplace for SaaS marketplaces!
- Salable. The unique selling point of this SaaS marketplace platform is that you can use it to sell licenses for your product or service
- Sastrify. This marketplace specialises in sending you personalised recommendations based on your existing SaaS stack
Travel marketplaces
- Home Exchange. This marketplace lets families find other families to house swap with
- Kid and Coe. A specialist vacation marketplace, Kid and Coe focuses on offering luxury rental homes for families
- Outdoorsy. Founded in 2015 and funded by famous VC company Andreessen Horowitz, This marketplace specialises in RV rentals
- Vrbo. Formerly known as HomeAway, Vrbo is a holiday rental marketplace
Frequently Asked Questions (FAQ)
The article aims to inspire individuals seeking startup ideas for 2024, specifically focusing on the potential of developing a marketplace app. It introduces readers to top marketplace startups, highlighting their success stories and lessons.
Building a marketplace app offers several advantages, including scalability, recurring revenue, and the opportunity to support small businesses. The FAQ explores the potential and versatility of online marketplaces.
Amazon, founded in 1994 by Jeff Bezos, initially focused on books. Over time, it diversified its product range, and in 2000, Amazon Marketplace was launched, allowing third-party sellers to join the platform. The key lesson here is Amazon’s adaptability and continuous evolution.
Rakuten, founded in 1997 in Japan by Hiroshi Mikitani, operates as an online shopping mall specializing in fashion, electronics, and home goods. The platform has invested in various businesses, forming strong partnerships globally to expand its product offerings.
The FAQ provides a list of smaller vertical marketplaces in various categories, including craft marketplaces, customer-to-customer (C2C) marketplaces, fashion marketplaces, house sitting marketplaces, miscellaneous marketplaces, retail marketplaces, SaaS marketplaces, and travel marketplaces.
The FAQ directs readers to additional articles on building, developing, and launching a top-tier marketplace. Topics include building a multi-vendor online marketplace, evolving from eCommerce to a marketplace model, using AI in a marketplace app, avoiding common marketplace mistakes, and more. Readers can also explore the “You are launched” blog for further inspiration.
Want to create your own top marketplace startup?
If you’d like to know more about developing, building, and launching top-tier marketplace startups, here are some additional articles that you’ll find useful.
- How to build a multi-vendor online marketplace
- How to evolve from an eCommerce to a marketplace model
- How to use AI to power up your marketplace app
- Marketplace mistakes to avoid
- Ten features to include in your online marketplace app
- The different types of digital marketplaces to consider
- The top API integrations for your custom marketplace
- Tips for online marketplace development
Do you want to know more about building a successful startup? Check out the You are launched blog for more inspiration!
And, of course, if you need some additional support building your perfect marketplace app, our skilled team of software developers is here to help.
