Guide To Making A Two Sided Marketplace

Think of the many great companies that use the two-sided marketplace model. Uber is the biggest example, as their customers (the riders) help the drivers (the supply) gain profit. Both work with each other to make a self-reliant network that benefits both sides.

That’s why in this post we’ll show you how to create a two-sided marketplace. It won’t be easy, but with some perseverance, you’ll have a long-term product that keeps adding value as time progresses. So let’s begin!

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Select A Niche

When you’re planning to create a two-sided marketplace, you have to find a niche that you’re an expert in. While you can pick a random niche, it will be harder for you to understand the market and what your customer’s need. And, you’ll be able to start first and get ahead of your competition if you select a niche that’s small enough.

That being said, we suggest that you start with a small niche. By doing this, you can start with an easy niche and then monopolize it. After that, you can expand in different markets and grow your business.

Also, check to see if your niche is over or under-served. If the niche is underserved, you can attract your customers by making a more innovative and focused product. But, if its overserved, you can make a product and sell it at a lower cost.

Create Demand

Most people tend to think that you need to start with supply first. But, if you’re starting to create a two-sided marketplace, you’ll want to increase your demand first. Starting with supply first will lead to a lack of money and the inability to pay off your suppliers for your platform.

If you start with the demand first, you’ll be able to have more people as suppliers as well. When you increase the demand, you increase the profits which is always a good move in the long run.

Create The Supply

Just like demand, you’ll want to create the supply early. By doing this, you can start to create leads for your product’s demand side. In some situations, you make supply proxies which allow you to add in businesses that assist in the supply section of your business.

Community Building

Without a community, your users aren’t going to be excited to use your marketplace. The main goal of making a two-sided marketplace is to make a business model that grows as your consumer base grows. This allows both sides of your marketplace to grow while retention costs and lower customer acquisition.

When making your community, you need to have a common goal for your community members. You have to empower and involve your members in certain steps of your marketplace. This makes them feel more included and more open to try your products.

Creating Content

Content helps your customers stay focused on your brand and build relationships with them. Like we said earlier, you have to get your community members involved with your brand. For example, allowing them to create a guest post for your blog helps improve your image and you can use it as a tool to increase user engagement.


Your first two-sided marketplace won’t be easy. So you’ll have to preserve and allow your business to grow incrementally. While doing this, you’ll have to improve your product so that it fits the need of your growing user base. So stay with it, and you’ll reap the rewards later!


Overall, the quality of your marketplace depends on you. So you’ll have to place in the time and effort to ensure that both the demand and supply sectors of your marketplace are satisfied. Keep at it, and you’ll have a business model that supports itself!

If you are interested in even more business-related articles and information from us here at Bit Rebels then we have a lot to choose from.

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