How to Create a Services Marketplace

“Got skills? Sell ’em.”

This mantra has seen millions of freelancers turn to the internet and become location-independent.

That’s not all.

Over the last decade, service marketplaces have sprung up and distributed how we work and live.

For instance, Airbnb, a marketplace for vacation rentals, has over four million hosts who have welcomed over 800 million guests. Food delivery service marketplaces are expected to reach $154.34 billion in 2023.

The success of current platforms is one of the main reasons entrepreneurs are looking to get into the business.

In this post, I’m breaking down everything you need to know about service marketplaces and how to launch one people will use.

What Is a Service Marketplace?

A service marketplace is a website or app for buying and selling services. Freelancers, private individuals, or companies in various industries can advertise their services and get hired by people who need their help.

The most successful service marketplaces cater to a specific market and redefine how we manage our lives.

For example, Upwork and Fiverr have changed how companies find freelancers for gigs. These online marketplaces have also made remote work more accessible to millions of people around the world. Meanwhile, Uber and Airbnb have disrupted how we travel, created more jobs within the gig community, and given homeowners a way to make extra cash on the side.

Why Should You Create a Service Marketplace?

The service industry is lucrative. In the U.S. alone, the consumer service economy is worth a whopping $9.7 trillion.

If getting a slice of that pie isn’t enough to tempt you, here are some of the top benefits for creating a service marketplace.

You don’t need to be a professional: While understanding the industry you’re helping is a must, you don’t need to do the work. As an owner of a services marketplace, you only need to focus on attracting sellers and buyers. For example, you can start a website for personal trainers without having the skill.
It’s easy to build: These days, there are various marketplace software providers to make the process of launching your site quick and simple. Some of the top providers are Sharetribe, Shopify with Multi-Vendor Marketplace Extension, and Arcad i er.
It may be more profitable than an e-commerce marketplace: Unlike Amazon, when you provide services rather than goods, you don’t need to figure out things like shipping and inventory. Fewer costs mean higher commissions for you and your sellers.
You can outwit, outlast, and outplay the competition: Sites like Upwork and Thumbtack are wildly successful because they make finding and buying services faster and cheaper. In a world where time is a scarce commodity, creating this level of convenience could give you the upper hand over your competitors.