How to Build an Online Furniture Marketplace

A few years ago, people used to go to a physical store to buy their furniture. Now the time has changed. With advancements in technology and logistics, people are ordering their furniture from online eCommerce stores and marketplaces. Incredible right?

Nobody thought that an online marketplace for furniture would be feasible. But here we are. Now, there are quite a few furniture marketplaces in the world. Even big retail chain furniture stores are creating their online presence to compete with them.

So if you are looking to start your own marketplace for furniture then you have come to the right place. We are going to show you all the ins and outs of creating an online furniture marketplace with all the necessary features.

Let’s start-

Opportunities and Growth Possibilities for a Furniture Marketplace Industry

Before we move on and start telling you how to create an online furniture marketplace, you need to know if there is any future in starting one.

Moreover, online marketplaces have more advantages over traditional brick-and-mortar stores. Customers will have more product options, lower prices, and can browse more products in a short amount of time. This process is more popular among millennials and Genz, who are the majority of your customers.

It is safe to say, that there are a lot of opportunities for growth in the furniture world and you shouldn’t wait any longer. If you have a brick-and-mortar store, then you have a more advantage. All you need to do is design your marketplace and start selling right away. You don’t need to worry about inventory.

Trends and Challenges in the Furniture eCommerce Industry

Like any other marketplace, the online furniture marketplace industry has its own trends and challenges for you to consider.

Trends of a Furniture Marketplace

Streamlined Product Offerings and Customer-Friendly Policies: Furniture retailers like Casper and Leesa have found success by simplifying their product lists, offering straightforward pricing, and providing generous return policies.

This strategy has worked well, with Casper planning to expand into international markets. Similarly, Amazon has thrived by entering the home furnishings category and boosting its mattress sales.

Launch Now: The online furniture market is booming, and there’s no better time to start your journey. You can create a thriving eCommerce furniture store by leveraging the latest technologies and addressing customer needs.

New Technologies Revolutionizing Furniture Shopping: Technology is reshaping the way people buy furniture online.

Retailers like Wayfair have integrated Augmented Reality (AR) into their mobile apps, letting customers visualize 3D furniture models in their own homes.

Similarly, Facebook’s acquisition of GrokStyle and IKEA’s innovative IKEA Place app is helping customers better imagine how furniture fits into their spaces. These advancements are making online shopping more engaging and interactive, helping furniture sellers increase their sales.

Challenges & Their Solutions

1. High Shipping Costs and Delays: Shipping bulky furniture items is expensive and time-consuming. Customers, spoiled by free and fast shipping options like Amazon Prime, expect the same from every retailer.

Use real-time shipping calculators to give customers transparent delivery costs. Partner with local delivery services to optimize shipping times and reduce costs.

2. Handling Customer Returns: Returns are tricky in the furniture business. If customers receive damaged or unsuitable furniture, returning these large items can be a hassle. This creates challenges like:

• Coordinating the return logistics.
• Protecting items from damage during transportation.
• Managing refund processes efficiently.

Create a clear return and refund policy that assures customers of hassle-free returns. Implement quality control inspections to reduce the chances of shipping damaged items.

3. Last-Mile Delivery Challenges: The final step of the delivery process—getting furniture to customers’ homes—can be the most complex. Inefficiencies arise due to multiple delivery stops and bulky packages.

• Increase the number of distribution centers in key regions to reduce delivery times.
• Use AI to optimize delivery routes and improve efficiency.
• Offer white-glove delivery services to enhance the customer experience by ensuring items are unpacked, assembled, and placed in their desired location.

4. Environment-Friendly Expectations: Customers are increasingly concerned about environmental impact. Many expect furniture retailers to adopt sustainable practices.

Use eco-friendly materials, reduce packaging waste, and offer recycling programs for old furniture. Highlight these efforts in your marketing to attract environmentally conscious buyers.

5. Limited Customization Options: Furniture buyers often want items tailored to their preferences. Limited options for customization can lead to missed sales opportunities.

Allow customers to choose colors, materials, or dimensions. Use AR or virtual design tools to make customization easy and interactive. 

Steps to Create a Furniture Marketplace

After knowing about the opportunities, trends, and challenges of the furniture marketplace, if you are still motivated to start your own, then you can start this part.

You may think that starting a furniture marketplace where you need to manage payments, shipping, vendors, orders, design, etc is very complicated. And you, who have great business acumen but little knowledge when comes to managing a website, will struggle.

That’s far from the truth. There are plenty of SaaS platforms that will help you launch your marketplace in no time. You just need to tweak a few settings, and drag and drop widgets to adjust the designs and you are good to go.

Yes, that’s right. The Dokan Cloud Marketplace platform will help you do exactly that. Dokan Cloud marketplace platform is a SaaS marketplace software that will enable users to create, configure, and manage a marketplace without any coding.

The platform has all the required features to start various types of marketplaces, including a furniture marketplace. These features include-

• Registration via email or social media
• Verified vendor profile approval
• Marketplace builder with necessary widgets
• Product listing management
• Convenient search for products
• Order tracking and shipping details
• Refund request handling
• Multiple payment methods, including credit cards
• Coupon management
• Live chat system for buyers and suppliers
• Vendor subscription and commission adjustments
• Sales report generation
• Advance tax system
• Ratings and reviews for feedback

Want to know more about Dokan Cloud? Visit the features page.

Here are the steps you need to follow to create an online furniture marketplace-

• Step 1: Signup to Dokan Cloud Platform
• Step 2: Complete the Onboarding Process
• Step 3: Configure Marketplace Settings- General, Payment, Shipment, Tax etc
• Step 4: Create a Subscription Plan for Vendors
• Step 6: Onboard Your First Vendor
• Step 7: Launch Your Marketplace
• Step 8: Go for Promotion

Let’s see the details-

Now, let’s see how to create a marketplace like Alibaba using Dokan Cloud Marketplace-

Step 1: Signup to Dokan Cloud Platform

First, you need to sign up for the Dokan Cloud platform to get started. Dokan Cloud offers a 14-day trial period. So you will get plenty of time to explore and test the available features before you make your final decision.

Also, after purchase, you will only need to pay $1/month for the first 3 months. This will give you time to test if your idea is market fit.

While signing up, you need to add your email address and set a password.

Dokan Cloud will take a few minutes to set up the marketplace and you will get a message that your marketplace is created.

Step 2: Complete the Onboarding Process

You need to complete the setup wizard in order to start your marketplace. Choose the Marketplace option, and add the necessary information like your store address, business name, etc to finish-

You can read the documentation on the onboarding process to get a better idea.

Step 3: Configure Marketplace Settings- General, Payment, Shipment, Tax etc

Now, it is time to configure the complex part. You need to configure the important settings for your marketplace platform.

In the general settings, you can configure the basic details, business details, domain, brand details, etc-

You can start by configuring the payment settings of the marketplace. Dokan Cloud has integration with popular payment gateways like Stripe, PayPal, Mangopay, etc. You can easily connect them to handle the transactions of your marketplace-

Also, you can set up the shipping settings from the dashboard. You can create different shipping profiles to handle complex shipping calculations, and shipping types (domestic, international) as well-

You can read the guide on how to set up shipping for your marketplace with Dokan Cloud.

We have written all the guides regarding the setup of the Dokan Cloud marketplace. Have a read.

Step 4: Create a Subscription Plan for Vendors

Now for your vendors to sign up and start selling on your marketplace, you need to create subscription plans. Dokan Cloud marketplace platform lets you create subscription plans with options to add trial period, commission (Fixed and Category), vendor capabilities, SEO, Reports-

Vendors will be able to choose a subscription plan when they sign up for your marketplace.

After all the configuration, this is what your marketplace may look like-

Step 5: Onboard Your First Vendor

The first vendors are crucial for credibility. Incentivize them with benefits such as:

• Waived subscription fees for the first six months.
• Featured listings or social media promotions at no cost.
• A dedicated account manager to assist them with onboarding and product listings.

According to research by McKinsey, marketplaces with a robust onboarding process see 50% higher retention rates for their vendors.

6. Launch Your Marketplace

A strategic launch sets the foundation for success. Follow these steps:

• Beta Launch: Begin with a small group of vendors and buyers to identify and resolve any issues before going live.
• Launch Campaigns: Promote your platform using targeted ads on platforms like Google Ads and Facebook to attract attention.
• Content Marketing: Create and share engaging content such as blog posts, videos, and case studies showcasing vendor success stories.
• Virtual Event: Host an online event to showcase top products on your platform. Invite industry influencers and potential buyers to boost visibility and create excitement.

7. Go for Promotion

After launching, promotion is critical for eCommerce store growth. Strategies include:

• Search Engine Optimization (SEO): Optimize product pages and blog content to rank higher on Google.
• Pay-Per-Click (PPC) Ads: Run targeted ads on platforms like Google and LinkedIn.
• Referral Programs: Encourage existing users to bring in new vendors and buyers by offering discounts or credits.
• Influencer Marketing: Collaborate with industry influencers to showcase your marketplace.

Be a Proud Owner of an Online Furniture Marketplace!!

Building an online furniture marketplace is more than just launching a platform—it’s about creating a space where customers find comfort and style, vendors thrive, and innovation flourishes.

By embracing technology, addressing challenges head-on, and staying focused on customer satisfaction, you can transform your vision into a thriving business.

Remember, every great marketplace started with a simple idea and the determination to make it real.

With thoughtful planning, strategic execution, and a commitment to excellence, your online furniture marketplace can become a cornerstone of modern living, inspiring homes and lives across the world. The future of furniture shopping is waiting—go out there and build it!