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Building a Two sided Marketplace: Key features and mistakes to Avoid

A successful two-sided marketplace must balance value for both buyers and sellers. Key features include user roles, product/service listings, secure payments, messaging, reviews, and a smart matching system. Trust is everything use identity verification and clear policies. One major mistake is focusing too much on one side, like just buyers and ignoring the other. Skipping early user feedback or launching without enough users on both ends can also kill momentum. Build slowly, test often, and always design with both sides in mind. Scalability, support, and seamless UX are non-negotiable for long-term success.

MVP to full product: How to launch a Marketplace in 90 days

To launch your marketplace in 90 days, start by building a Minimal Viable Product (MVP). Focus on essential features that make the marketplace work, like user sign-up, product listings, a search function, and secure payment options.

Days 1-30: Set up the basic framework with developer. Create user authentication and a simple database structure to store products and user data.

Days 31-60: Build core features like product listings, search functionality, messaging between users, and payment processing.

Days 61-75: Start testing with a small group of users to get feedback on bugs, usability, and missing features. Fix issues and improve the experience based on their feedback.

Days 76-90: Add advanced features like ratings, reviews, and an admin panel. At the same time, prepare your marketing plan and ensure your platform can scale for more users.

Stripe vs. Paddle for Marketplace payments- What you choose in2025

They both help you collect payments and grow subscriptions, their philosophies, features, and operational trade-offs couldn’t be more different. We’re breaking it all down so you can choose the platform that aligns best with your growth model, compliance needs, and internal ops stack.

If you're building a marketplace that needs custom features,split payments, and full control over user experience, Stripe is the better choice. It’s developer-friendly, highly flexible, and perfect for platforms with multiple vendors. You can use Stripe Connect to manage seller payouts, KYC, and commission rules.

On the other hand, if your marketplace sells digital products or SaaS, and you want someone else to handle taxes, invoicing, and global compliance, Paddle is ideal. It works as a merchant of record, so you don’t need to worry about VAT, sales tax, or international regulations.

Choose Stripe if you want flexibility and control.
Choose Paddle if you want simplicity and fewer legal headaches

Why custom development beats off-the shelf marketplace solutions

Custom development beats off-the-shelf marketplace solutions because it is tailored to your specific business needs, offering greater flexibility and scalability. Unlike generic software, custom solutions can integrate seamlessly with your existing systems. They provide a competitive edge by supporting unique workflows and features. Custom software also enhances security, as it's built with your risks in mind. You control updates, maintenance, and data handling. Ultimately, it grows with your business, unlike rigid marketplace options.

How we built a pharmacy marketplace from scratch: The Rxeed.com story

We started Rxeed.com to help pharmacies buy and sell medications more easily and affordably. There was no simple way for pharmacies to connect directly, so we built a custom platform. We focused on making it easy to use, secure, and fully compliant with healthcare rules. Our team designed tools for real-time pricing, inventory tracking, and order management. We worked closely with pharmacists to understand what they really needed. Instead of using ready-made software, we built everything from the ground up. This gave us full control to improve and grow the platform. Today, Rxeed.com helps pharmacies save money and operate more efficiently.