Building a Two-Sided Marketplace MVP
By CodexierPublished 4 min read
A marketplace has two customers, buyers and sellers, and neither will come without the other. That is why marketplace founders who build a full platform first often launch to an empty room. This guide shows how to scope a marketplace MVP around liquidity instead of features, and how to handle payments without accidentally becoming an unlicensed payment institution.
Chicken and egg: which side first
Liquidity means that a buyer who arrives finds something relevant, and a seller who lists gets demand, often enough that both come back. The side that is scarcer decides where you start. In most service marketplaces good providers are scarce and buyers are plentiful, so founders recruit providers one by one, sometimes offering to do their listing, photos and pricing for them. Only when a buyer in the chosen niche reliably finds several good options is it time to spend on demand.
Start narrow and manual
A narrow niche is not a limitation; it is how you reach density. Dog walkers in two districts of Malmö beat all pet services in Sweden, because a buyer there actually finds someone.
| Function | Manual in the MVP | Automate when |
|---|---|---|
| Matching | You suggest providers by email or phone | You match the same way many times a week |
| Onboarding sellers | Personal call, you create the listing | Sellers ask to sign up faster than you can call |
| Quality control | You check every provider | Reviews exist and patterns are clear |
| Disputes | Handled personally | Volume makes it a daily task |
| Pricing | Fixed or guided by you | You have data on what clears |
This is the logic of a lean MVP feature list: build the parts that customers touch, do the rest yourself until you know how it should work.
Payments, splits and regulation
The moment your platform receives money from a buyer and passes it on to a seller, you are handling funds on behalf of others. Under the EU payment services rules, implemented in Sweden and supervised by Finansinspektionen, that generally requires authorisation. The exemption for commercial agents is narrow and is not a safe foundation for a startup.
- Use a marketplace payment product such as Stripe Connect or Adyen for Platforms, where the provider holds the licence and the funds.
- Let the provider verify seller identity and bank details, which is part of their obligations.
- Take your commission as an application fee in the split, not by collecting everything and paying out yourself.
- Decide whether you invoice the commission to sellers, and how VAT applies to it.
- Check with an adviser if sellers are consumers, since some tax and reporting rules for platforms apply.
Swish is popular in Sweden but was not built for platform splits. Card and Klarna through a platform provider are usually easier for an MVP.
Trust: reviews and verification
Verified identity
BankID verification of sellers, or of both sides for high-trust services, is a strong signal in Sweden.
Reviews after completed jobs
Only allow reviews tied to a real transaction, and say so, as the consumer rules on reviews expect.
Clear terms
Who is the seller, who is responsible for the service, and what the platform does if something goes wrong.
Human support
In the MVP, a named person answering quickly beats any automated trust feature.
What to automate later
- Self-service seller onboarding with identity verification.
- Search ranking and recommendations based on real match data.
- Automated reminders, rebooking and repeat orders.
- Dispute and refund flows.
- Dynamic pricing or bidding, if the market needs it.
When you should not build yet: if you have not matched buyers and sellers by hand, using a spreadsheet, a form and phone calls, you do not yet know what the platform needs to do. Validate the idea first. When you have, our MVP planning blueprint turns what you learned into a scoped build plan; see the pricing page or book a short call.
Frequently asked questions
Can we start a marketplace without a payment licence?
Yes, if a licensed platform payment provider handles the money. Your platform then instructs payments and takes a fee, but never holds the funds itself. That is the standard route for startups.
Should the MVP be built with no-code tools?
Often yes for the first version. Marketplace templates in no-code tools can prove liquidity cheaply. Rebuild in code when the matching logic, payments or scale outgrow the tool.
How do we price the commission?
Start with what the seller's alternative costs them, such as ads or agency fees, and stay clearly below it. Test with early sellers before publishing a rate.
When is it time to spend on marketing to buyers?
When a buyer in your niche reliably finds several good options and sellers respond quickly. Spending earlier brings buyers who find nothing and do not return.
Scope your marketplace MVP
Tell us which niche and which side you are starting with. In 15 minutes we will outline what to build, what to do by hand and how to handle payments.
Book a free 15-minute call