When it comes to mind about running Online Marketplace, it’s no secret that building a startup is really hard. We can see some successful models like Ebay, Amazon or especially Themeforest, Mojo Themes, Creative Market, etc. But the behind story is such a very long term. So where is the chance for other younger ones? If there are buyers but few sellers, the buyers leave. Yet if there are no buyers, what will convince sellers to sign on?

1. Believe in your vision

When trying to create a new marketplace or market category, you’ve got to believe in your idea even when no one else does. However, having faith doesn’t mean turning a blind eye to market reactions. You should continually look for small signals that you’re on the right track. These include: increased word of mouth from your early adopters, increased repeat usage from buyers, increased listings from sellers, and positive user feedback.

2. Simplify everything

Provide simple utility and basic features for your users so you don’t leave them out in the cold while you work on all the bells and whistles. As long as users have a small amount of basic utility, they’ll be much more inclined to stick around for promises of even more features.

3. Focus on Quality

Almost as important as the product is the quality of the service you are providing, so good employees are essential. As businesses are customer facing, you must ensure that you meet customers with your best foot forward.

4. Listen to Customers

You are unlikely to be able to help all your customers effectively if you don’t listen to their needs. By not listening you can become very frustrating to the customer and may lose a sale or repeat visit. Listen to the customer’s needs, empathise and find the best solutions.

5. Be Transparent

Let your early users know what’s going on, be open and apologetic when supply and demand don’t match up, and some users are left in the cold. The more up front you are, the more people will give you benefit of the doubt and want to help you out.

6. Tighten your focus

With limited resources to build a sustainable marketplace, you need to narrow the focus of your business efforts. In most cases, marketplace businesses need to build traction in smaller verticals before expanding their reach into bigger markets. Or in the case of geographical markets, a marketplace should nail one location before expanding into others.

7. Take care system

Errors always happen for a reason. Usually checking to avoid system errors can reduce significantly complaints from customers and impact on sale volume.

8. Lengthen the runway

It takes time to run a successful business as long as you can give it a long enough runway to build out among sides. Once you reach scale, things truly start clicking and an established marketplace is hard to unseat due to the strong network effects at play.

Give yourself enough time to build your business! This means adjusting your burn rate downwards in order to lengthen the runway as much as possible. While spending big at the beginning can help some businesses ramp up quickly or become the uncontested market leader, money cannot buy speed when it comes to building out a marketplace.