To launch a successful marketplace, you need the right technology.
The multi-vendor marketplace may be simple in concept, but its execution is much more complex than that of a single-vendor store. An assortment of merchants means lots more moving pieces, and the right marketplace tools are critical for smooth operations.
Given the complexity of marketplace operations, there’s a wide range of marketplace software to consider adopting. Marketplace software can include a multi-vendor platform, payment solutions, marketing tools, and more. Not sure where to start? You’ve come to the right place.
In this article, we’ll cover:
Multi-vendor marketplace software is the technology that powers your marketplace business. As one ecommerce director we interviewed put it, “The right marketplace website software transforms complex processes, making marketplaces more accessible than ever.”
While historically businesses needed to build their marketplaces from scratch — taking many years and boatloads of money to get off the ground— this is no longer the case. The industry has evolved from requiring custom development to offering robust marketplace tools that streamline launching and managing online markets.
Now, anyone can realize their marketplace vision with the right tech stack.
Like anything, marketplace software isn’t one-size-fits-all. Specific marketplace software or technologies depend on the operational needs, strategic objectives, and desired outcomes.
Below are some of our favorite tools currently on the market.
Nautical is the end-to-end multi-vendor marketplace platform that enables businesses to launch a marketplace loved by buyers, sellers, and operators. From product discovery to vendor payouts, Nautical’s comprehensive platform orchestrates marketplace transactions across every stakeholder to ensure a seamless buying experience. Nautical offers an API-first architecture which allows for the ultimate flexibility.
Why we love it: We developed Nautical Commerce to fill the gap that existed for people trying to launch a marketplace. It’s an end-to-end platform (no underlying commerce platform required) that’s specifically designed for marketplaces.
Best for: Startups and midsize businesses looking to launch a physical goods marketplace.
Pricing: Nautical offers competitive pricing, flexible to the stage and needs of your business. Start a free trial.
Utilizing the best marketplace tools for marketing is pivotal. An ecommerce leader shared, “leveraging marketplace software optimized for marketing has skyrocketed our visibility and user engagement, driving unprecedented traffic.”
These tools not only enhance the marketplace's appeal but solidify its position in a competitive online space.
From checkout reminders to order updates to email marketing campaigns, it’s essential to have a reliable method of communication with your marketplace customers and suppliers.
SendGrid is a reputable software for both transactional and marketing emails at scale. The software provides reliable email delivery to ensure your communications reach users promptly. Plus, its scalability can accommodate communication needs at any stage of growth.
Why we love it: With their email API, you can seamlessly integrate SendGrid into whatever platform you use to power your marketplace business. Plus, get access to analytics to stay on top of what’s working and what’s not.
Pricing: Depending on your stage and the primary function you’re using the tool for, prices range from free to $90/month. Plus, there’s custom pricing for the premier offering.
Yotpo helps businesses collect and leverage user-generated content to improve their marketing efforts. Marketplaces are built on trust, and one cannot underestimate the power of reviews and referrals. Yotpo allows marketplaces to collect and display reviews, and build loyalty programs.
Why we love it: Displaying reviews on your website doesn’t only help build trust amongst buyers, but can also be leveraged as valuable feedback for your whole company.
Pricing: Pricing ranges from $15/month to $269/month, depending on monthly order volume and required features. You can also get a custom plan for a more premium offering.
Using reliable software for marketplace payments is critical. Unlike a first-party ecommerce store, money isn’t only moving between two parties — it’s moving between three. Once the buyer pays the operator, sellers also need to know when and how they’ll receive their money.
Getting payments and payouts right is essential to build trust with your marketplace’s stakeholders.
Stripe has quickly become the industry standard for ecommerce payments, and it’s no different for marketplaces. Stripe offers an easy, fast, and scalable way to provide payment optionality to customers. Plus, they have an offering specifically for marketplace payouts, Stripe Connect. Used by many well-known platforms, like DoorDash, Salesforce, and Mindbody, the tool enables operators to reliably payout vendors.
Why we love it: Stripe Connect makes it easy to onboard sellers and gives operators and sellers visibility of how the money moves across the marketplace.
Pricing: With Stripe, most of the money you’re charged is based on a per cent per transaction, depending on payment type and business requirements.
In recent years, tax compliance has become increasingly burdensome for marketplace operators. In 2025, the IRS will require US operators to issue a Form 1099-K to every vendor who earns more than $600 in annual sales.
Also — thanks to a landmark 2018 Supreme Court ruling — marketplace operators are no longer only required to collect and remit sales taxes in states where they have a physical presence. Above certain thresholds, which vary from state to state, marketplace operators must collect and remit sales tax on all transactions.
Managing taxes in a multi-vendor setup requires sophisticated marketplace website software. But don’t take our word for it. An ecommerce leader we interviewed emphasized, “navigating tax compliance is streamlined by utilizing marketplace software like Avalara, which is designed to tackle the complexities specific to online marketplaces.”
Why we love it: Avalara knows marketplaces. With regulations continuing to change around how marketplaces pay taxes, it’s important to work with a business that’s staying up to date with the latest compliance requirements. Plus, they work across a wide range of marketplace types — from physical goods to social commerce.
Pricing: For pricing options, you need to speak to a sales representative.
Since many multi-vendor marketplace operators don’t store or deliver any products or services, it’s easy to forget about shipping and logistics in the planning stage. However, marketplace operators need to make it frictionless for vendors to ship their products and services and share shipping details back to the marketplace.
ShipStation is a shipping solution that helps retailers organize, process, and fulfill their orders efficiently. The software allows your sellers to integrate with your marketplace platform so they can keep track of orders at every stage of the fulfillment process. Plus, it allows sellers to manage inventory accurately and allocate stock.
Why we love it: It’s not difficult to imagine how orders can get out of hand for vendors selling through multiple channels. ShipStation enables vendors to streamline their order fulfillment across multiple selling platforms to ensure a better experience for everyone.
Pricing: ShipStation has a wide range of plans available depending on needs, from $9.99/month to $229.99/month for enterprise. Plus, get a quote for high-volume shipping options.
As a leading provider in mapping, navigation, and geolocation technologies, HERE Technologies provides accurate and up-to-date location data essential for optimizing logistics operations. This software enables geolocation features so you can see maps of the fleet and warehouses on your marketplace and have visibility into routing, geocoding, and shipping status.
Why we love it: HERE Technologies' solutions are highly customizable and scalable, catering to the specific needs of marketplace logistics operations. Integration capabilities allow seamless collaboration with other systems, streamlining workflow efficiency.
Pricing: You can get started for free and pay as you grow. For numbers, you need to reach out to their team.
According to a study by Zendesk, more than half of consumers will switch to a competitor after only one bad customer service experience. Needless to say, it’s important to get customer service right — and hopefully the first time.
With so many different preferences for modes of communication, it’s no longer enough to have one channel for customer support. Fortunately, there are tools to help manage your communication with customers so you don’t get bogged down juggling phone calls, emails, instant messages, and more.
HelpScout is a customer support software that allows you to have all your conversations on one unified platform. Its shared inbox consolidates inquiries from across channels, ensuring prompt and efficient responses.
Collaboration tools enable support teams to coordinate efforts and provide consistent, accurate assistance. Automation features streamline repetitive tasks, leading to faster response times and smoother interactions. Plus, they have a knowledge base and reporting features to help you track key metrics.
Why we love it: HelpScout is tried and true. It’s used by more than 12,000 businesses and has offerings for businesses small to large.
Pricing: Plans range from $20/user/month to $65/user/month. You can also try a 15-day free trial.
Choosing the right technology at the start of your marketplace journey can save you a lot of time and headaches down the road. These tools address the unique complexities associated with running an online marketplace and also play a significant role in automating processes, enhancing user experience, and ensuring compliance with tax regulations.
With so many marketplace tools at our fingertips, managing and launching an online marketplace has never been more accessible.
A good place to begin? Your marketplace platform. Try a free trial of Nautical’s marketplace platform.
