How to Create A Ecommerce Website like Ebay: Features & Business Model by@shailu

How to Create A Ecommerce Website like Ebay: Features & Business Model

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eBay is the most successful online auction marketplace platform. The latest earning figures of eBay prove that this platform has gained tremendous growth in recent years. Initially, eBay was started as an auction website where users buy and sell products through this marketplace platform. 

But since it has taken growth and become a multi-billion-dollar eCommerce platform that holds millions of users and allows both consumer-to-consumer transactions and also business to consumer transactions.

Let us have a deep look at how to create online marketplace website like eBay and business models and let's find out how eBay works as this will help you to reap the rewards of high traffic volumes to your own marketplace platform.

" In 2018, 1.8 billion people worldwide purchased goods online. In the same year, global retail sales amounted to 2.8 trillion USD and also the projections have shown a growth of up to 4.8 USD in 2021. "

eBay Stats and Facts – Funding and Major Milestones

  • eBay was founded on September 13, 1995, as ‘Auction Web’ by Pierre Omidyar and has its headquarters in San Jose, California, USA.
  • eBay got its name by the year 1997.
  • In 2004, eBay acquired Craigslist, Skype, and Paypal.
  • eBay’s first mobile app and app store were launched in 2008.
  • The global shipping program was launched in 2012.
  • eBay introduced its fastest delivery option (delivery less than 3 days) in 2017.
  • Currently, eBay holds 185 million active users and serves around 180 countries.

Why eBay Auction Marketplace is successful

Although there are several auction marketplace platforms available, eBay still has its own place and standard among the audience. The reason is mainly because of how eBay works and how it handles its users.

  • Best user interface – eBay has the best user interface that facilitates users to conveniently access the portal and find the product easily with few clicks. eBay works well with its customers’ buying behavior and has set the platform that completely meets users’ demands.
  • Wide range of products – eBay provides an infinite count of products on its platform. Users can get any type of product they search for. Rare products are even available on this platform that makes users excited to shop on this platform. This is how eBay works in attracting audiences to its portal.
  • Free listings for fresher – users who join eBay initially will get free listings that will help them to post their product with no charge. After a certain period, they will be charged for posting ads. This supports freshers to start their business with eBay.
  • Better payment options – eBay provides multiple payment options to its users. Users can find their favorite payment gateway that they are comfortable with and can easily start their money transactions through those payment gateways.
  • Dedicated mobile apps – eBay has never missed gaining the attention of mobile users as they are a major category that is active all the time. eBay provides an exclusive mobile app for sellers and buyers.

eBay Online Marketplace Website Business Model


There is significant importance in knowing how eBay works. It has a perfect business model that facilitates sellers and buyers to enjoy all benefits. Let us get into detail about the eBay business model.

Initially, sellers will get registered themselves with the eBay platform and will start posting their listing on the platform. They will be allowed to add product images, give descriptions to products, and many more.

Some listings are auction based where the product will be sold to the highest bidder. But some products are not auction-based as the product will be posted with the 'buy it now' option. Whoever pays can buy the product.

Through available payment gateways, buyers can pay for the product and can buy them. It applies to bidding also. The highest bidder will pay and get the product.

eBay marketplace also offers shopping tools like a shopping cart where buyers can temporarily store their favorite products and can buy them later. Buyers can keep track of their purchase history and can even save their searches. This is how eBay works and this has made the platform a well-known marketplace globally.

How eBay Auction Website Makes Money – Revenue Model Explained

eBay is quite successful because of its revenue model. Every marketplace should have a perfect revenue model that will help in making good money and will help to survive in the market.

Likewise, eBay business models work well with selective revenue models. Take a clear view of eBay's revenue models.

Listing fee – although eBay doesn’t charge any listing fee with fresher, after few transactions, eBay starts charging fees from sellers. Sellers need to pay a fee for products they post on the platform.

eBay online marketplace also supports sellers to get their products listed on the main page and will help them to get more visitors to their product page that will help them in better conversion.

Transaction fee – on all successful transactions, sellers need to pay a transaction fee to eBay. Since there are millions of sellers, an infinite count of transactions occurs every day.

So eBay gets better revenue by charging a transaction fee on all product selling that happens within the platform.

Insertion fee – a non-refundable insertion fee is charged on sellers when they open a bid for an item they have posted for sale.

Each seller may post several products for bidding and for each product they need to pay the insertion fee to start the bid.

Advertisement – being a reputed online classified marketplace, eBay allows third-party advertisers to post their ads on the home page and earns money through advertisements.

Last year eBay earned $1.2 billion through advertisement alone.

Technologies Required For a Creating Auction Marektplace Website Like eBay

  • Programming Languages: Javascript, Ruby
  • Application Framework: Rails
  • Javascript Framework: React JS
  • Automation Framework: Cypress, RSpecSQL
  • Data Storage: Postgre
  • SQL Data Storage: Redis
  • Web Server: AWS Load Balancer
  • Web Application Server: Puma
  • Hosting: AWS

Build a Similar Online Ecommerce Marketplace Website Like Ebay:

Planning to build a marketplace like Ebay from scratch is very complicated and tedious process. So, if you want to kick start your online ecommerce business without any intervention and delay, there are many readymade solutions which pave a better and budget-friendly way to become a successful entrepreneur. 

Create your own auction website like eBay to make your buying and selling process under one roof.

According to your business model and your time limit you can select either to build it from scratch or even you can prefer to go for a readymade software to run an ecommerce business like Ebay. Whatever the choice is, there are a few important factors you need to prioritize.

  • User interface – make sure that you give a user-friendly interface to your customers. Only then you can retain them.
  • Security – let your website own an SSL certificate that can protect your platform from hacking and gives trust to your customers.
  • Logistics – this is the key pillar of your platform and select the one that has a good track record and high rating on perfect delivery.
  • Customer support – never leave your customer unattended. Always provide a perfect back-up and listen to their queries. The delight they get is the service you provide them on time.

By keeping the above mentioned factors in mind you can succeed in your ecommerce business just like Amazon or Ebay.

We might wonder how much it will cost to build a website like amazon or Ebay. Here we need to find out what are the essential features that amazon or Ebay holds to run successfully. And this will determine the cost for building the same. The features that will set the cost for your website are listed below.

  • Multilanguage & multicurrency
  • Unlimited products & categories
  • Reviews & Ratings
  • Easy & simple Checkout
  • Order & purchase management
  • Stock & Tax management
  • Reports & Google Analytics
  • Admin & Seller Dashboard
  • Automated Newsletter & Email
  • Offers & Discounts
  • Marketing & Promotions

All the above features will affect the cost to develop a website like Amazon or Ebay.

Readymade Solutions to Make your Marketplace Website Like eBay

The readymade marketplace is purposely designed to compete in the challenging market. The functionalities developed in the readymade marketplace will be similar to the functionalities found in the leading eCommerce portals like eBay.

The cost of the software perfectly matches your budget and in a quick period, you can launch your online store. So for any start-up or mid-level businesses, the readymade marketplace is highly recommended.

  • Responsive website: responsive website and powerful, feature packaged ready to launch solution make your business reach the target audience without any hassle.
    • 100% customization: From designing UI/UX to embedding the backend, in readymade can customize your auction marketplace to provide a great shopping experience to your potential customers. 
    • Supports Android and iOS platforms: readymade solution accelerates your ecommerce and m-commerce app development process in both iOS and Android platforms within no time. 
    • Social media integration: platform intensifies customer engagement through social media integration, content/target marketing, viral social media outreach, etc.
    • More payment gateways: readymade software can offer your end customers with various payment gateways to make their shopping experience.
    • 24*7 customer support: We present you an uninterrupted 24*7 support from our experts for planning, development, implementation, and maintenance.
    • Smooth Registration process: With the integration of social media to the marketplace app, there is little or no need to enter loads of personal data into your registration form. 
    • Push Notification: The push notification is a crucial way to hook your customers into your marketplace app. 

    These are the revenue streams through which eBay works and earns well. Some sellers find this to be costly but the reputation eBay has will compensate for your spending with this platform as you will get more visitors and buyers to buy your products.

    Creating an eCommerce online store, it’s time for you to move on analyzing your requirements and budget to kick-start your online selling journey.


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