Business Idea

Start A Social Goods Marketplace

About

Starting a social goods marketplace requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell social goods product, or selling social goods product online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a social goods marketplace ➜

Key stats

market size
$683B
revenue (monthly)
$500K
starting costs
$17.2K
gross margin
40%
avg product price
$20
time to build
7 months
growth
Word of mouth
business model
E-Commerce
time investment
Full time

About

Starting a social goods marketplace requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell social goods product, or selling social goods product online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a social goods marketplace ➜

Key stats

market size
$683B
revenue (monthly)
$500K
starting costs
$17.2K
gross margin
40%
avg product price
$20

 

time to build
7 months
growth
Word of mouth
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Equipment & Supply Expenses $500 $5,000
Inventory Expenses $350 $14,750
Software Expenses $150 $2,794
Website Costs $13 $215
Advertising & Marketing Costs $0 $2,450
Other Expenses $0 $300
Total Startup Costs $1,763 $32,509

Successful Businesses

Business URL Rank
Apartment Therapy apartmenttherapy.com #5,921
Italic italic.com #52,189
ourCommonplace ourcommonplace.co #156,628
Las Vegas Market lasvegasmarket.com #283,531
HelpGood helpgood.com #538,639
The Goods Mart thegoodsmart.com #714,544
Pike Place Market pikeplacemarket.org #745,114
Marketplace: Handwork of India marketplaceindia.com #852,415
Ferry Building Marketplace ferrybuildingmarketplace.com #866,046
Casablanca Market casablancamarket.com #954,179
DenverCentralMarket denvercentralmarket.com #1,060,572

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a social goods marketplace costs significantly less money than most businesses, ranging anywhere from 1,763 to 32,509.
Rewarding work Starting a social goods marketplace can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website A social goods marketplace gives people a reason to visit your website and to keep coming back to you!
Cons Description
Crowded Space Competition is high when it comes to your social goods marketplace, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Lack of benefits With a social goods marketplace, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a social goods marketplace, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a social goods marketplace, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.