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Karol Andruszków
Karol is a serial entrepreneur who has successfully founded 4 startup companies. With over 11 years of experience in Banking, Financial, IT and eCommerce sector, Karol has provided expert advice to more than 500 companies across 15 countries, including Poland, the USA, the UK, and Portugal.
How to Build a Marketplace MVP: Guide for Founders
Updated:
Mon, Aug 4
Czas czytania: 13 minut
A marketplace MVP is the simplest working version of a two-sided platform. Whether it’s a service or product marketplace, the goal is to connect buyers and sellers with enough functionality to validate the concept.
Building an MVP helps you learn fast and avoid building the wrong thing. You can test real demand without burning money. That’s critical, because 42% of startups fail due to a lack of product–market fit. Even worse, 74% of failed startups scaled too soon (before validating their business model).
Many of these failures come from overspending early, weak unit economics, or unclear ways to make money. A marketplace MVP protects you from these pitfalls by keeping costs low and feedback loops tight.
In this guide, we’ll walk through how to build an MVP Marketplace. We'll cover preparation steps, key differences between service vs. product marketplaces, core features to include, technical stack options, common mistakes to avoid, and real case studies of successful marketplace MVPs.
By the end, you’ll know how to build a lean, working platform that can grow with confidence.
Service Marketplaces vs. Product Marketplaces
Building an MVP helps you learn fast and avoid building the wrong thing. You can test real demand without burning money. That’s critical, because 42% of startups fail due to a lack of product–market fit. Even worse, 74% of failed startups scaled too soon (before validating their business model).
Many of these failures come from overspending early, weak unit economics, or unclear ways to make money. A marketplace MVP protects you from these pitfalls by keeping costs low and feedback loops tight.
In this guide, we’ll walk through how to build an MVP Marketplace. We'll cover preparation steps, key differences between service vs. product marketplaces, core features to include, technical stack options, common mistakes to avoid, and real case studies of successful marketplace MVPs.
By the end, you’ll know how to build a lean, working platform that can grow with confidence.
Validate Before You Code
Building a marketplace is not a tech challenge. It’s a market validation challenge. Before writing a single line of code, you must prove there’s real demand. You need to know both buyers and sellers want the platform and will use it.
Too many founders skip this step. They build a technically solid platform, but no one uses it. Don’t build a “desert marketplace.” That’s what happens when no one asked for your product.
Here’s a quick tutorial on how to avoid it.
Your job is to find out if their pain is real. You also want to know if your solution would help. If you skip this, you risk building something nobody needs.
For a detailed guide, read How to Validate Marketplace Idea Before You Build?. It walks through every step of this process.
To get early feedback, create a simple landing page. Show your core offer and ask people to join a waitlist. If no one signs up, it’s a sign to revisit your idea.
One founder used Shopify to fake a working marketplace. They onboarded suppliers by hand and emailed every order. The buyers never knew it wasn’t automated. However, the test worked, and it proved there was demand.
You can also list yourself or friends as the first providers. Some founders even used their own gear or time to seed supply. These scrappy methods help solve the classic “chicken and egg” problem.
Start with simple math:
Look at your market. In most marketplaces, take rates range from 10% to 30%. For example, Fiverr takes about 20% from sellers. Airbnb takes fees from both sides.
Decide who pays: the buyer, the seller (or maybe both). Will you charge per transaction, per month, or upfront? Try charging a small fee from day one. If users vanish the moment you add a price, that tells you something.
Make sure your pricing can scale. Many investors want to see an LTV/CAC ratio above 3.
Read their reviews. What do users complain about? Slow shipping? Unverified providers? High fees? These are gaps you can target.
Map your competitors in a table. List their price, features, and who they target.
Ask yourself:
Trying to beat a giant from day one is hard. It’s smarter to focus on a narrow slice where you can win.
Many founders have been here. Airbnb’s team went door-to-door to take host photos. They even sold cereal boxes to survive. They did things that didn’t scale—and it worked.
Stay close to your users. Give support. Gather feedback. Trust matters more than tech in the early days.
You also need to stay flexible. Be ready to change your idea based on what you learn. To understand how startups adapt during this phase, read 15 Ways to Test Product-Market Fit. It includes practical examples from real companies.
This applies whether you’re solo, technical, or not. Many MVPs today are built with no-code tools or by Startup Studios.
Treat your MVP like a test. Build, measure, learn. Don’t focus on features. Focus on learning what works.
Too many founders skip this step. They build a technically solid platform, but no one uses it. Don’t build a “desert marketplace.” That’s what happens when no one asked for your product.
Here’s a quick tutorial on how to avoid it.
Talk to Users First
Start with market research. Speak with 5–10 people from both sides of your marketplace. Ask about how they solve their problem today. What frustrates them? Let them talk. Don’t pitch your idea until the end.Your job is to find out if their pain is real. You also want to know if your solution would help. If you skip this, you risk building something nobody needs.
For a detailed guide, read How to Validate Marketplace Idea Before You Build?. It walks through every step of this process.
To get early feedback, create a simple landing page. Show your core offer and ask people to join a waitlist. If no one signs up, it’s a sign to revisit your idea.
Fake the Platform
You don’t need software to test demand. Use what’s called the “Wizard of Oz” method. That means running the platform manually behind the scenes.
One founder used Shopify to fake a working marketplace. They onboarded suppliers by hand and emailed every order. The buyers never knew it wasn’t automated. However, the test worked, and it proved there was demand.
You can also list yourself or friends as the first providers. Some founders even used their own gear or time to seed supply. These scrappy methods help solve the classic “chicken and egg” problem.
Know How You’ll Make Money
Many startups fail because they don’t plan how to make money. Even at the MVP stage, you need a basic business model.Start with simple math:
- How much does it cost to get a customer (CAC)?
- How much money can one customer bring over time (LTV)?
- What percentage will you take from each transaction (take rate)?
Look at your market. In most marketplaces, take rates range from 10% to 30%. For example, Fiverr takes about 20% from sellers. Airbnb takes fees from both sides.
Decide who pays: the buyer, the seller (or maybe both). Will you charge per transaction, per month, or upfront? Try charging a small fee from day one. If users vanish the moment you add a price, that tells you something.
Make sure your pricing can scale. Many investors want to see an LTV/CAC ratio above 3.
Study the Competition
Check what people are already using to solve the same problem. That means both direct competitors (like other marketplaces) and indirect ones (like forums or offline options).Read their reviews. What do users complain about? Slow shipping? Unverified providers? High fees? These are gaps you can target.
Map your competitors in a table. List their price, features, and who they target.
Ask yourself:
- How are they solving the problem today?
- Can you do better in a niche or location?
- Is the market big or growing?
Trying to beat a giant from day one is hard. It’s smarter to focus on a narrow slice where you can win.
Prepare Mentally (yes, we're not joking)
Running a marketplace MVP is hard. You must keep both sides happy: buyers and sellers. You will face slow traction early. You’ll probably need to "hustle".
Many founders have been here. Airbnb’s team went door-to-door to take host photos. They even sold cereal boxes to survive. They did things that didn’t scale—and it worked.
Stay close to your users. Give support. Gather feedback. Trust matters more than tech in the early days.
You also need to stay flexible. Be ready to change your idea based on what you learn. To understand how startups adapt during this phase, read 15 Ways to Test Product-Market Fit. It includes practical examples from real companies.
This applies whether you’re solo, technical, or not. Many MVPs today are built with no-code tools or by Startup Studios.
Treat your MVP like a test. Build, measure, learn. Don’t focus on features. Focus on learning what works.
Service Marketplaces vs. Product Marketplaces
Online marketplaces fall into two main categories: service marketplaces and product marketplaces. Service marketplaces connect people for tasks or services, like Upwork, TaskRabbit, or Uber. Product marketplaces enable the exchange of goods, like Etsy, Amazon Marketplace, or eBay.
Both connect buyers and sellers and usually earn through transaction fees. But they differ in user flows, operations, and key challenges. Understanding these differences shapes which features your marketplace MVP needs.
Typical flow in a service marketplace:
A buyer (client) requests a service via the platform, the marketplace forwards the request to a suitable service provider, the service is delivered (often offline in the real world), and then the platform processes payment and facilitates feedback/review. Service marketplaces often need scheduling, two-way communication, and trust mechanisms to ensure quality.
Services need trust because the product is someone’s labor. Users can’t see the result until after delivery. Key features often include:
Monetization is usually a commission per transaction. Some start with free or subsidized transactions to gain traction. Still, testing willingness to pay early is critical to avoid a “free-only” trap.
The biggest early challenge is the chicken-and-egg problem. Providers won’t join without buyers, and buyers won’t come without providers. Successful service marketplaces often launch in a small niche or location first.
How Product Marketplaces Work
A product marketplace looks more like a classic e-commerce flow:
A buyer browses product listings and places an order through the marketplace. The platform notifies the seller of the sale, and the seller is responsible for shipping the product to the buyer. The marketplace handles payment, and upon delivery confirmation, releases funds to the seller (minus fees). Buyer and seller can then leave feedback. Product marketplaces must manage inventory, shipping logistics, and product quality assurance.
Unlike services, the main challenge here is logistics. You need to manage:
Product trust depends on authenticity and delivery reliability. Reviews for both sellers and products are critical. Some marketplaces add extra checks, verifying sneakers before shipping.
Monetization is typically commission-based. Product marketplaces may offer paid listings or ads to boost revenue. Subscriptions for buyers are rare; easy buyer onboarding drives volume.
Both connect buyers and sellers and usually earn through transaction fees. But they differ in user flows, operations, and key challenges. Understanding these differences shapes which features your marketplace MVP needs.
How Service Marketplaces Work
A service marketplace focuses on booking and delivering a task.Typical flow in a service marketplace:
A buyer (client) requests a service via the platform, the marketplace forwards the request to a suitable service provider, the service is delivered (often offline in the real world), and then the platform processes payment and facilitates feedback/review. Service marketplaces often need scheduling, two-way communication, and trust mechanisms to ensure quality.
Services need trust because the product is someone’s labor. Users can’t see the result until after delivery. Key features often include:
- Scheduling and calendar tools.
- Secure messaging or calls.
- Ratings and reviews to build trust.
- Background checks or ID verification.
- Escrow or dispute resolution to handle problems.
Monetization is usually a commission per transaction. Some start with free or subsidized transactions to gain traction. Still, testing willingness to pay early is critical to avoid a “free-only” trap.
The biggest early challenge is the chicken-and-egg problem. Providers won’t join without buyers, and buyers won’t come without providers. Successful service marketplaces often launch in a small niche or location first.
How Product Marketplaces Work
A product marketplace looks more like a classic e-commerce flow:A buyer browses product listings and places an order through the marketplace. The platform notifies the seller of the sale, and the seller is responsible for shipping the product to the buyer. The marketplace handles payment, and upon delivery confirmation, releases funds to the seller (minus fees). Buyer and seller can then leave feedback. Product marketplaces must manage inventory, shipping logistics, and product quality assurance.
Unlike services, the main challenge here is logistics. You need to manage:
- Inventory updates from sellers.
- Shipping and order tracking.
- Returns and refund policies.
Product trust depends on authenticity and delivery reliability. Reviews for both sellers and products are critical. Some marketplaces add extra checks, verifying sneakers before shipping.
Monetization is typically commission-based. Product marketplaces may offer paid listings or ads to boost revenue. Subscriptions for buyers are rare; easy buyer onboarding drives volume.
Core MVP Features: Must-Haves vs Nice-to-Haves
One of the biggest questions early founders face is:
What features does my marketplace MVP need?
It’s tempting to imagine a platform that does everything, but remember, MVP means minimal. You should focus on the must-have features that enable the core transaction between supply and demand, and avoid overbuilding.
Here we outline the critical features for marketplace MVPs (for both service and product types), and how to approach the “chicken & egg” problem of building the two sides of your marketplace.
Now let's explore to chicken & egg problem. In other words, which side to focus on first?
A marketplace needs two sides: supply (sellers or providers) and demand (buyers or clients). Early on, you cannot grow both sides in sync. You must pick a side to prioritize.
Most successful founders agree: start with supply. Sellers are harder to recruit, and once they join, they often stay. Buyers, on the other hand, will leave instantly if they find nothing to buy or book.
“Focus like a laser on supply,” advises investor Stephen Forte. “If you have supply, buyers will come.”
Examples:
Some founders even act as their own first supplier:
What features does my marketplace MVP need?
It’s tempting to imagine a platform that does everything, but remember, MVP means minimal. You should focus on the must-have features that enable the core transaction between supply and demand, and avoid overbuilding.
Here we outline the critical features for marketplace MVPs (for both service and product types), and how to approach the “chicken & egg” problem of building the two sides of your marketplace.
Must-Haves & Nice-to-Haves features for Product Marketplace
Must-Haves & Nice-to-Haves features for Service Marketplace
Now let's explore to chicken & egg problem. In other words, which side to focus on first?
A marketplace needs two sides: supply (sellers or providers) and demand (buyers or clients). Early on, you cannot grow both sides in sync. You must pick a side to prioritize.
Most successful founders agree: start with supply. Sellers are harder to recruit, and once they join, they often stay. Buyers, on the other hand, will leave instantly if they find nothing to buy or book.
“Focus like a laser on supply,” advises investor Stephen Forte. “If you have supply, buyers will come.”
Why Supply First Works
- Supply is sticky: Providers have higher switching costs and will list with you if there’s value.
- Empty marketplaces repel buyers: A buyer who finds nothing rarely returns.
- Manual supply-building creates early liquidity: Even a few active providers can attract initial buyers.
Examples:
- Airbnb personally recruited hosts and even offered free listing photography.
- YouTube nurtured creators with free tools and revenue sharing.
- Uber subsidized drivers to ensure rides were available in new cities.
Some founders even act as their own first supplier:
- Zappos’ founder bought shoes from stores after each order.
- PaulCamper listed the founder’s personal camper van to seed supply.
Tech Stack and Build Options
Once you’ve validated your idea, you need to decide how to build your marketplace MVP.
Founders have three main paths: custom development, no-code tools, and white-label marketplace solutions.
Each has its own rhythm, cost, and trade-offs.
The trade-off is speed and cost. A custom marketplace takes at least 8 to 12 months before launch, which is a long wait when you’re still searching for product–market fit. It also requires ongoing technical maintenance.
For most early-stage founders, this level of investment is overkill. Unless your concept depends on highly complex or proprietary technology (like Uber’s real-time dispatching or a marketplace with AI-driven matching), it’s usually smarter to start smaller and validate the model first.
The biggest advantage is speed & cost. Of course, no-code comes with limits. Complex custom workflows can be impossible to implement, and apps may run slower if traffic spikes.
Eventually, successful marketplaces often migrate to a more scalable setup. But that’s a good problem to have; it means your MVP worked.
Between custom coding and no-code sits a middle path. You can use a pre-built marketplace engine or framework.
This solution gives you 90% of what a marketplace needs out of the box: user accounts, listings, transactions, vendor dashboards, and basic payouts. You focus on your niche and branding while the platform handles the heavy lifting.
The advantage is flexibility. For many early-stage founders, this route strikes the best balance - fast enough to launch quickly, structured enough to support real transactions, and flexible enough to customize branding or some workflows.
Founders have three main paths: custom development, no-code tools, and white-label marketplace solutions.
Each has its own rhythm, cost, and trade-offs.
Custom Development
Building from scratch gives you complete control. You design every feature, manage the database, and host the system wherever you choose. This approach can support the most unique workflows or unusual business models because nothing is off-limits.The trade-off is speed and cost. A custom marketplace takes at least 8 to 12 months before launch, which is a long wait when you’re still searching for product–market fit. It also requires ongoing technical maintenance.
For most early-stage founders, this level of investment is overkill. Unless your concept depends on highly complex or proprietary technology (like Uber’s real-time dispatching or a marketplace with AI-driven matching), it’s usually smarter to start smaller and validate the model first.
No-Code and Low-Code Tools
No-code has changed the game for early marketplaces. Platforms like Bubble, Webflow, or Sharetribe Go let non-technical founders launch functional marketplaces within weeks instead of months.
The biggest advantage is speed & cost. Of course, no-code comes with limits. Complex custom workflows can be impossible to implement, and apps may run slower if traffic spikes.
Eventually, successful marketplaces often migrate to a more scalable setup. But that’s a good problem to have; it means your MVP worked.
White-Label Marketplace Solutions
Between custom coding and no-code sits a middle path. You can use a pre-built marketplace engine or framework.
This solution gives you 90% of what a marketplace needs out of the box: user accounts, listings, transactions, vendor dashboards, and basic payouts. You focus on your niche and branding while the platform handles the heavy lifting.
The advantage is flexibility. For many early-stage founders, this route strikes the best balance - fast enough to launch quickly, structured enough to support real transactions, and flexible enough to customize branding or some workflows.
Common Mistakes and How to Avoid Them
Even with careful planning, marketplace founders often fall into familiar traps. These mistakes can slow your path to product–market fit or even sink your MVP. The good news is that you can avoid most of them if you recognize the patterns early.
The result? Months of work, a delayed launch, and features no one may actually use.
One indie hacker summed it up bluntly: “I overshot my MVP by a mile. The app does far too much.”
When you add non-essential features early, two problems appear:
A better approach is to tie your MVP to the essentials. Ask yourself: Can users complete the main transaction without this feature? If the answer is yes, leave it out.
Airbnb’s first version was almost embarrassingly simple. It was just a listing page and a PayPal link. It worked because it solved a real problem. Real feedback then guided what to build next.
Early founders sometimes focus only on transactions and postpone trust-building features. They think: We’ll add reviews or verification later. But one bad experience can tarnish a new marketplace before it has a chance to grow.
Even a basic MVP should include simple trust mechanisms:
This can backfire.
A small commission, subscription, or listing fee (even if discounted at first) helps in two ways. It validates that your business model can work and encourages more committed users. Free listings often attract people who post casually and then disappear.
In marketplace terms, this can mean:
The Startup Genome report found 74% of high-growth startups fail due to premature scaling. A real-world example is Tutorspree, an “Airbnb for tutors,” which grew quickly through SEO but relied on a single channel. When Google changed its algorithm, traffic collapsed, and the company never recovered.
Your MVP marketplace stage is for learning, not racing to look big. Grow supply and demand in balance, start with small markets, and resist the urge to chase vanity metrics.
Early adopters will reveal where the friction is:
Every conversation is a free usability test. Reach out after transactions, ask for honest feedback, and look for patterns. Many successful marketplaces made small but critical pivots based on these insights.
1. Building Too Much, Too Soon
The most common mistake is overbuilding the MVP. Many founders imagine a platform with every feature: complex search, advanced filters, messaging, dashboards, even AI recommendations.The result? Months of work, a delayed launch, and features no one may actually use.
One indie hacker summed it up bluntly: “I overshot my MVP by a mile. The app does far too much.”
When you add non-essential features early, two problems appear:
- You waste time perfecting things that don’t impact core value.
- Users can get confused or overwhelmed if the basics aren’t right.
A better approach is to tie your MVP to the essentials. Ask yourself: Can users complete the main transaction without this feature? If the answer is yes, leave it out.
Airbnb’s first version was almost embarrassingly simple. It was just a listing page and a PayPal link. It worked because it solved a real problem. Real feedback then guided what to build next.
2. Ignoring Trust and Safety
Marketplaces live and die on trust. If users feel unsafe or uncertain, they will leave and often won’t come back.Early founders sometimes focus only on transactions and postpone trust-building features. They think: We’ll add reviews or verification later. But one bad experience can tarnish a new marketplace before it has a chance to grow.
Even a basic MVP should include simple trust mechanisms:
- Email or phone verification to show users are real.
- A basic review or rating system.
- Secure payment processing so money feels protected.
3. Avoiding Monetization
Another common trap is launching completely free with no revenue plan. The idea is that removing friction will attract users faster, and monetization can come later.This can backfire.
- You never prove that people are willing to pay.
- When you finally add fees, users may revolt.
A small commission, subscription, or listing fee (even if discounted at first) helps in two ways. It validates that your business model can work and encourages more committed users. Free listings often attract people who post casually and then disappear.
4. Scaling Before You’re Ready
Premature scaling is a startup killer. Founders see a spark of traction or raise a bit of funding and start expanding too fast.In marketplace terms, this can mean:
- Launching in multiple cities or categories too early.
- Hiring big teams or spending heavily on ads before retention is proven.
- Over-engineering the tech for traffic that hasn’t arrived yet.
The Startup Genome report found 74% of high-growth startups fail due to premature scaling. A real-world example is Tutorspree, an “Airbnb for tutors,” which grew quickly through SEO but relied on a single channel. When Google changed its algorithm, traffic collapsed, and the company never recovered.
Your MVP marketplace stage is for learning, not racing to look big. Grow supply and demand in balance, start with small markets, and resist the urge to chase vanity metrics.
5. Ignoring Early Users
Your first users are your most valuable source of insight. Yet many founders get so focused on growth that they forget to listen.Early adopters will reveal where the friction is:
- Maybe providers need better tools to manage listings.
- Maybe buyers can’t find what they want, or the flow feels confusing.
Every conversation is a free usability test. Reach out after transactions, ask for honest feedback, and look for patterns. Many successful marketplaces made small but critical pivots based on these insights.
Checklist for Founders on How to Build Marketplace MVP
To wrap up, here’s a step-by-step checklist summarizing actionable steps and best practices for before, during, and after building your marketplace MVP.
Use this as a guide to keep yourself on track:
Use this as a guide to keep yourself on track:
Key Takeaways
Launching a marketplace is a challenge, but it becomes far less overwhelming when you focus on validation over perfection. Your MVP is not meant to impress investors with complex tech or endless features—it’s a tool to learn fast, spend little, and prove real demand.
The pattern from every successful marketplace is the same:
A good marketplace MVP doesn’t try to be perfect. It only needs to do one thing well: help a buyer and a seller complete a transaction.
The faster you get to that first real transaction, the sooner you can start learning, iterating, and building a marketplace that lasts.
The pattern from every successful marketplace is the same:
- Start lean, with only the must-have features to enable transactions.
- Focus on one side of the market first, usually the supply side.
- Use trust-building elements early - reviews, basic verification, and secure payments.
- Test your monetization model from the start, even if it’s minimal.
- Stay close to early users, adapt quickly, and avoid the trap of premature scaling.
A good marketplace MVP doesn’t try to be perfect. It only needs to do one thing well: help a buyer and a seller complete a transaction.
The faster you get to that first real transaction, the sooner you can start learning, iterating, and building a marketplace that lasts.
Karol Andruszków
Karol is a serial entrepreneur who has successfully founded 4 startup companies. With over 11 years of experience in Banking, Financial, IT and eCommerce sector, Karol has provided expert advice to more than 500 companies across 15 countries, including Poland, the USA, the UK, and Portugal.
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