Contact us anytime to know more - Amit A., Founder & COO CISIN
Earlier eBay was known as Auction Web. Over the years, it has gained more fame as a retail IT solutions expert and has more than 178 million active users. Today, eBay has made a reputation as a multi-vendor marketplace for customers. Still, in simple terms, this platform allows other business owners and shoppers to purchase or sell goods.
Like other online stores, eBay allows people to buy or sell goods online. Still, they can also be sold to other customers at fixed prices or through any auction. The price categories work precisely like the marketplace, where an auction allows the customers to fix the starting price and customers who offer the maximum price get the product. To develop a website like eBay, it is advised to choose MVP, as it will provide you with an option to validate your initial idea stage. You can also get feedback from the customers by making specific improvements. Let us learn about them in-depth.
About EBay
Let's first look at how eBay started and how it has changed over time. AuctionWeb was the original name of eBay. It has developed into a powerful ecommerce website platform with over 177 million users. eBay is an online marketplace website that connects multiple vendors. In a nutshell, eBay is an online ecommerce marketplace where consumers and companies can buy and sell both new and used commodities.
Like any other online store, eBay enables consumers to purchase and sell goods. However, goods can be sold at a set price or at an auction. Fixed pricing operates just like any other online marketplaces. In an auction, sellers can set a starting price, and bidders can match it. The bidder who placed the highest bid wins the item.
An MVP is a good starting point for developing a website like eBay. This enables you to make modifications and early user validation and feedback. Let's begin by outlining the basic features of a website like eBay.
How Did EBay Achieve Its Success?
The first-ever online auction service was called eBay. When it was established in 2001, people used it as an internet store to sell their stuff. It generates more than $10 billion in sales annually, making it the most effective online auction platform today.
Let's examine how eBay evolved from a single vendor internet store to a global auction site. The following infographic highlights the significant turning points in eBay's growth into one of the most well-known e-commerce website platforms. This infographic only shows a small portion of eBay's 25-year history. EBay has won multiple honors for its social media activities, workplace culture, and philanthropic work.
In the early days of online auction marketplaces, when there was minimal competition, eBay was a pioneer. To launch an auction similar to eBay now is to enter a cutthroat market. Success is still a possibility. In the following part, we'll go through some justifications for constructing a platform of this nature.
How Can Websites Like EBay Make Money Online?
Concentrating on the essential components is insufficient. You also need to understand how to make money. Take eBay as an illustration:
Seller Fees
A seller's commission can be between 3.5 and 10% of the total sale price. According to data, eBay sold around $88.4 billion of goods and services in 2017. Between two and three-quarters of its revenue came from seller fees.
Insertion Fees
Sellers must pay a fee to eBay to put their goods for sale. This cost may apply to each listing or each category. Sellers who list their items in more than one category pay an additional fee.
Listings To Be Added
Sellers must pay $0.35 per listing if they add more than 50 listings in a single calendar month.
PayPal Fees
Transaction fees are what make eBay money. PayPal is used by people to send money. The seller pays a transaction fee of $0.30 per transaction and 2.9 percent of the total sales. The transaction cost for sending money with a debit card or credit card is 2.9% plus $0.30.
Advertising
Sellers can also advertise on eBay. Promoted listings are the most prevalent form of advertising on eBay. By putting their item at the top of eBay search results, promoted listings allow sellers to increase the visibility of their product.
Cost per sale is advertised on eBay (CPS). Sellers are not charged for clicks, impressions, or clicks that don't result in purchases. They only get paid if a customer clicks on their promoted listing and buys the product within 30 business days. A 2018 research indicates that more vendors are now using sponsored listings. Research for the third quarter of 2018 revealed a 700% year-over-year rise in the number of sellers using promoted listings.
What Are The Challenges In Building An EBay-Like Website?
Let's look at your challenges when building a website like eBay:
Problem With Chicken And Eggs: Which happens first? What happens first? Those who buy or those who sell? This presents the most significant difficulty for markets in their early stages. Introducing two different categories of users at once into the market is challenging. One remedy is the pricing scheme. You may, for instance, charge sellers while providing free services to customers. This will encourage buyers to participate. You will get more sellers if you have more buyers.
Fierce Competition: In horizontal product markets like Amazon, eBay, and Alibaba, keeping on top of the competition is challenging. To achieve a competitive advantage, savvy marketers advise picking a specialization. Picking a niche market segment that isn't well-tapped and then focusing your efforts on conquering it will give you a competitive advantage.
A niche market focusing on a specific range of goods and services is a promising strategy in a crowded market. Consider Etsy as an example. A specialized website called Etsy offers handmade, vintage, and craft items. Most of its users are female freelance artists. Many of its users are parents who have children. People look to Etsy for one-of-a-kind, non-mass-produced goods. Etsy's focused niche enables it to communicate effectively across all platforms and target the right people at the right time. It aids in concentrating its marketing efforts on the appropriate target markets.
Navigating Complicated Areas: Enhancing navigation, shortening the buying path, and making it simple for users to purchase goods are the three critical goals of e-commerce design. A thoughtful UI/UX design will enhance sales by turning visitors into customers. This can be accomplished by considering transitions and UI/UX logic and ensuring that your micro-interactions are unambiguous and straightforward. It would be best to focus on the product presentation and a simple payment flow.
Zappos' website (Online retail company) offers a fantastic UI/UX for its customers. Each product page includes item information. This includes product photos taken from different angles and colors to highlight the unique features of each product. Zappos' website also offers product videos to enhance your shopping experience.
Features To Be Included In The Ecommerce Websites
There are various options available for B2B eCommerce app development, and you can easily choose any model for building your website. The only difference is that the model can have an impact on the software which is to be used on the coding type; moreover everything else is quite similar. In the big picture, revenue generated from this business model can also affect your website. Let us learn about the features required to build a website like eBay:
Secure The Payment Mode
While creating any Retail IT Solutions, it is essential to choose a secure and protected payment gateway. There are many examples where personal data gets stolen or corrupted. For the customer who wants to develop websites like eBay, the payment gateway options must involve advanced security features. You can consider some of the options like:
- Stripe: It is a customizable, quick and secure payment gateway allowing business platforms to easily view data and analytics in real time. Users can also get an instant to refine or improve operations to increase their growth and effectiveness.
- Authorise.net: This gateway was created to assist in small or medium Custom software development services, including the extensive list of multiple features like mobile payment, fraud detection suite, checks, etc.
Communication Medium
While creating a website like eBay, you must provide a reliable communication medium to the buyers and sellers. Sometimes a customer expects to receive updated information all the time regarding the products or services, or it is also possible that the seller might not be sure about the deal. Hence such websites must include an integrated chatting service or any customer service helpline where any party with doubts can leave a message for assistance. While creating a website like eBay, the communication system must be safe, responsive and quick.
Visualization And Marketing Tools
This is one of the most crucial segments that any Best web development company can never miss, as it allows users to make purchases based on photos. The website must be accustomed to the visuals of multiple qualities. It must be capable of being optimized and support the uploading of various files that can be displayed for the user's convenience. Before advertising the product you have to keep in mind to provide multiple pictures regarding the same and once you have created a site, advertising gives a delicate touch to it. The best way to do it is to utilize automated email marketing tools. Some of the essential tools which you can consider are-
- Mailchimp: This tool allows the users to send drip emails to get updates of follow-up based upon the activities of abandoned carts, inactivity, etc. it also has several double integration options and All-in-One solutions for inbounding the campaigns.
- Mailerlite: This tool allows users with a dragon drop feature where they can easily set up great marketing campaigns in a few minutes. It also provides the personalization of segments to automate the campaign.
- Constant Contact: For a large number of advertising strategies in Website development services this tool is the best.
User Connection
You must utilize the appropriate coding language if you want a better communication system. To remedy any problems, members of your website's community (sellers and purchasers) should be able to contact one another. Customers may not be sure of the product, or sellers may not know the buyer. In these cases, they must communicate. You can set up a direct message system or ask a query over the helpline. When developing the messaging system for your website, make sure it is quick, fluid, and responsive.
Images
This is your website's most crucial section because customers will decide on the image. Think about an auction website development. Your website must be capable of accepting photos of different qualities. Websites should be optimized. They should also include the guidelines for uploading files. It's a good idea to develop an app with a lovely design to make your website mobile-friendly. Imagery is the foundation of advertising. Sales will increase with better images. Make sure to photograph the product several times.
Promotional Tools
It's time to market your website once you've finished building it. Software tools are essential for marketing. These tools are handy if you create them yourself. This programme can be used to generate automatic emails and provide advertising recommendations.
Get Involved
A call to action should be included. On pages that list the key components of e-commerce products, the call to action button (CTA) should be prominently visible. It might be a button that says "purchase now" or "add to cart." It should be simple to recognize and encourage the visitor to act. It is essential to choose the proper button color and consider your target market's cultural preferences. When selecting your text, remember that different terms can have different meanings in other nations. Consider the CTA wording on eBay, which reads "Add To Basket" in the US and "Add To Cart" in the UK.
Read More: How iBeacon useful in driving huge sales for retailers
Get An Idea With The Website Build-Up Like EBay
The marketplace development of multiple applications in the E-Commerce retail industry and other segments has remained a great help for the business platforms that do not intend to disintegrate their budget and time accommodating the activities required for the build-up. E-Commerce websites like eBay facilitate the online purchase of goods and deliver the product as per your confirmation. The cherry on top is online payments through which you can get the product at your doorstep without investing the effort. Applications like this enable customers or sellers to gain access to the world's biggest marketplace with absolute convenience.
Hence if you are planning to build an application similar to eBay, then always have your approach clear and show the users what you have in store. You can include great offers, promotions, hot items, amazing deals or some recommendations that any customer cannot trust. The website must be enjoyable and allow customers to purchase or sell in their comfort and at their homes, as various Custom software development services emphasize the same.
This type of website always provides regular updates to its customers. It notifies them to grab the perfect deal of accurate or hard-to-find items quickly. With the features of notifications and pop-ups, the users are updated on all deals and activities undertaken by the website. You can include multiple features to help the users like search, purchase or sell the eBay handle and all the activities. Some other features which you can consider including are-
- To make a bid and purchase without actually leaving the application.
- To list and sell all the items and products.
- To monitor the purchase or deal you have made on the platform.
- Share the purchased or favorite items with other users.
- To resolve any issues and other information-related queries.
- To give ratings and comments.
How Much Does It Cost To Build Website Development Services Like EBay?
The overall cost of starting a website, just like eBay, is dependent upon multiple factors like the features, quotations of the development company and if the product is to be created from scratch. In the below-mentioned segment, you will find a roughly estimated timeline for developing this website-
- Project management takes 340 hours.
- The business analysis takes 446 hours.
- UX designing takes 570 hours.
- UI designing takes 730 hours.
- Quality assurance takes nearly 570 hours.
- Html or CSS development takes 790 hours.
- Front-end development requires a minimum of 1120 hours.
- Backend development requires a minimum of 1900 hours.
Altogether you can consider that to develop the MVP of a platform, you might require roughly 6560 hours for a platform like eBay (from scratch). The cost of building the website depends upon the hourly rates in most cases for any development company you are entrusting to build up. Hence the rates differ from region to region where the average hourly rate is as follows-
- Central or Western Europe around $45.
- Scandinavia around $43.
- The Baltic States around $25.
- Eastern Europe around $27.
- Ukraine around $26.
Hence, multiplying the overall time estimation with hourly rates gives you an idea of the development cost.
Can I Create A Website On My Own?
You might have heard of successful e-commerce websites like Amazon, eBay, AliExpress, and the name. The trading analysts of the business suggest that this type of website has a common feature: they provide the associated individuals with equal profits and space. There might be the most obvious question in your mind, and the answer to "can I start a website like eBay on my own" is here. EBay currently operates in more than 25 countries, including China and India, as a vast marketplace exists. Imagine what if you could break the segments into small steps. The ultimate gold to build a stable marketplace will be more accurate. It follows the steps-
- Building The Platform: The first step for any B2B eCommerce app development is to hire the best and most professional software developers in the industry. They will help you get the most specialized solution. Still, if you cannot find such specialists or have a tight budget, consider having marketplace builder solutions.
- Designing: It is an incredible feature to consider because of how good a website is if the visuals cannot lure the customer to come back again and again. Building the website from MVP is a good option because it provides all the necessary features by default, like the neutral visual theme, functional script, support for all the external links and so on. To serve this purpose, you can prefer any open-source plug-in medium to make your website more recognizable.
- Promotional Events: Once the development is done, one of the most challenging events starts to attract potential buyers and sellers for your platform. For this, you can make your website more understandable, reliable and, most importantly, profitable. The website must become the first choice for the marketplace alternatives giving a tough fight to the common ones.
To overcome some of the typical troubles of this segment, you can create optimal conditions for the shoppers and customers associated with their platform. You can also prioritize the mutual benefit of the associated individuals and provide them with a platform for their success and stability in the marketplace. If you cannot do it on your own, plenty of the Best web development company is at your disposal.
Additional Information To Make A Marketplace
Founded in 1995, eBay has become one of the most prominent shopping platforms, specializing in selling for purchasing a wide range of goods and services. Some sponsored products and services include decorative arts, automation, baby safety and health care, motors, books, cameras, shoes and accessories, cell phones, electronics and gadgets, sporting goods, toys, clothing and everything else you can think of. But what makes it different from other websites? The answer is that it includes third-party vendors and fixed-price goods and services. They have included two different forms of selling and purchasing b2c and c2c online services. It provides the selling of goods in three different terms as-
- Fixed Price: In this mode the seller offers the goods at a fixed price and the customers who agreed to pay the same will get the product. This function goes just like any other marketplace app.
- Online Auction: This is one of the most incredible features that has made eBay's success so prominent. In this mode, the shopper sets the goods' starting price along with the bid's duration. Any interested buyers can make a bet on the price, which goes on until the final bet is made. The product finally goes to the person who has agreed to pay the most significant amount.
- Advertising Formats: In this mode, the seller develops the advertisements shown in the eBay shop section of the platform. The items showcased in these advertisements can be sold without any time limit.
Final thoughts
It would be best if you further improved the usability of your auction site once it has been launched. Even though it can be challenging to estimate how long it will take to create the next eBay, it is crucial to know when you intend to release the initial version with the help of Best web development company.
In a fair amount of time, an MVP for the market can be created. If you are sure about your choice, you can create an auction site in a year. Make sure you select a reliable partner to help you construct your product. Select a development company after choosing an area. Examine their reputation on multiple platforms after that. You can start working together after you are happy with the business. With the right development company, you can establish your following auction website.
