Marketplace
MAR-kit-plays
A storefront where developers and users discover and install third-party integrations, extensions, or apps built for a platform.
A marketplace is where users discover and install things built on your platform. The Shopify App Store, Salesforce AppExchange, and Slack App Directory are marketplaces. They connect users who need capabilities with developers who built them.
Marketplaces benefit all three parties. Users get more capabilities without building them. Developers (ISVs) get distribution to your customer base. You get a stickier platform and, if you take a revenue share, a new revenue stream.
Building a marketplace is a significant investment. You need submission and review processes, a listing format, search and discovery, installation flows, billing integration (if you handle payments), and quality standards. Most companies start with a simple integration directory and evolve it into a full marketplace over time.
Examples
A company launches an integration marketplace.
Version 1: a simple directory of 50 partner integrations with descriptions and setup guides. Version 2: one-click installation from the dashboard. Version 3: a full marketplace with ratings, reviews, pricing, and revenue sharing. The marketplace grows with the platform.
A marketplace integration drives platform adoption.
A popular integration with Jira drives 500 new platform signups per month. Users searching for 'Jira monitoring integration' find the marketplace listing and sign up for the platform to install it. The integration is a customer acquisition channel.
A marketplace creates a revenue stream.
The marketplace processes $5M in annual transactions from paid integrations. The platform takes a 20% revenue share: $1M. ISVs earn $4M. The marketplace revenue is growing 50% year-over-year as more ISVs list their products.
Frequently asked questions
When should a company build a marketplace?
After you have 20+ third-party integrations and users are asking for more. Start with a simple directory. Evolve to a marketplace when you have enough listings to warrant search, categories, and reviews. Do not build a marketplace before the ecosystem has something to list.
How much revenue share should a marketplace take?
15-30% is the typical range. Apple and Google take 15-30%. Salesforce takes 15-25%. The rate should reflect the value the marketplace provides in distribution and billing. Too high discourages ISVs. Too low does not cover the marketplace's operating costs.
Related terms
A software product that other developers build upon, extending its capabilities through APIs, integrations, and custom applications.
A connection between two software products that allows them to share data and work together.
A company that builds and sells software products, often as a partner that integrates with or extends a larger platform.
The network of tools, libraries, integrations, and community resources that surround a developer platform.
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