Young colleagues cooperating while working on a computer in the office.

EngineeringInnovationOutsourcing

How to Set Up a Distributed Workforce

Distributed Workforce

The organizations that succeed will be the ones that build it with intentionality

For fast-growing and cost-conscious companies

Simply repackaging old habits into digital formats won’t cut it. The future belongs to those willing to rethink everything, from meeting structures to performance metrics, with clarity and purpose.

How to Set Up a Distributed Workforce:

Embracing Intentional Design

The world of work has undergone a seismic shift, with distributed workforces becoming the new norm. But simply scattering teams across locations isn’t enough—success hinges on intentional design. Here’s how organizations can thoughtfully set up a distributed workforce for long-term productivity and engagement.

Start With Purposeful Planning

Intentional design begins with a clear understanding of why you’re going distributed. Is it for access to global talent, cost savings, or employee flexibility? Define your goals up front to guide every decision that follows.

Design Communication Flows, Not Just Tools

Distributed work thrives on seamless communication. Instead of relying solely on digital tools, map out how information should flow within your organization. Identify key communication channels, establish norms for meetings, and ensure transparency in decision-making. Planning information flow from the start prevents miscommunication, duplicate work, and project delays.

Build Trust and Flexibility Into the Culture

A distributed workforce requires a shift in the workplace contract. Trust, flexibility, and choice become foundational (autonomy). Empower employees to manage their own schedules and locations, while providing the digital infrastructure they need to stay connected and productive.

Rethink Collaboration Spaces

Physical offices are no longer the default. Instead, design a blend of digital and occasional physical spaces that support collaboration, creativity, and social connection. Mixed reality and other collaborative technologies can help bridge the gap between remote and in-person teams, fostering a sense of presence and shared purpose.

Prioritize Employee Wellbeing and Belonging

Intentional design means considering the holistic experience of distributed employees. Create opportunities for informal interaction, mentorship, and professional growth. Regularly check in on well-being and ensure every team member feels included, regardless of location.

Continuously Iterate and Improve

The distributed workforce landscape is dynamic. Gather feedback, measure outcomes, and be ready to adapt your design as needs evolve. Treat your distributed work strategy as a living system, always open to improvement.

Transform The Work Environment

Transforming the future will require a reinvention of how, where, and when we work – a new workplace model, Motivation 3.0, as well as a new workplace contract between employer and employee. Employers must ensure trust, flexibility, and choice, as well as the highest quality experience.

In Summary

Setting up a distributed workforce isn’t just about technology or policy—it’s about intentional intrinsic design. By planning communication, building trust (autonomy), rethinking collaboration, and prioritizing well-being, organizations can unlock the full potential of distributed teams and shape the future of work.

Let's talk

Professional Advice: When considering a nearshore outsourcing partner, always ask for examples of past projects that demonstrate their commitment to software quality. Talk with their current customers, and ask for use cases similar to your company’s competitive landscape, all that can give you the confidence you need to make the right decision for your business.

June 18, 2025 0 Comments by MSc. Adrian Lopez

EngineeringInnovationOutsourcing

Methodology: Choose the Right Software Development Approach for Your Organization

Methodology Matters:

Choose the Right Software Development Approach for Your Organization

Software Development Approaches

Welcome to our comprehensive exploration of software development methodologies for technical leaders and practitioners. This guide examines established approaches that organizations employ to structure their development processes, with evidence-based examples from industry implementations. We’ll analyze the strengths and limitations of each methodology to help you determine which framework might best align with your organizational requirements and team dynamics.

Agile Methodologies

Agile methodologies represent an adaptive approach to software development that emphasizes flexibility, customer collaboration, and rapid delivery of functional software. Born from the Agile Manifesto in 2001, these methodologies emerged as a response to the limitations of traditional development approaches.

Scrum

Iterative approach with 2-4 week sprints
Key roles: Product Owner, Scrum Master, Development Team
Ceremonies: Sprint Planning, Daily Standups, Sprint Review, Sprint Retrospective
Artifacts: Product Backlog, Sprint Backlog, Increment
Example: Spotify uses a modified Scrum approach with “squads” (Scrum teams) organized into “tribes” for product development, allowing them to quickly iterate on features and respond to user feedback for their streaming platform.
Source: Kniberg, H., & Ivarsson, A. (2012). Scaling Agile @ Spotify with Tribes, Squads, Chapters & Guilds. Spotify Engineering Blog.

Kanban

Continuous delivery focused on flow of work
Visualizes workflow on Kanban board with columns (To Do, In Progress, Done)
Limits work in progress (WIP) to prevent bottlenecks
Continuous improvement without fixed iterations
Example: Microsoft’s Azure DevOps team uses Kanban to manage their service updates and bug fixes, allowing them to respond to critical issues immediately while maintaining a steady flow of feature development.
Source: Banfield, R., Lombardo, C. T., & Wax, T. (2015). Design Sprint: A Practical Guidebook for Building Great Digital Products. O’Reilly Media.

Extreme Programming (XP

Focus on technical excellence and quality
Practices: Pair programming, Test-Driven Development, Continuous Integration
Short development cycles with frequent releases
Emphasizes customer involvement and feedback
Example: Pivotal Labs implements XP practices like pair programming and TDD for client projects, which has helped them maintain high code quality while developing complex applications for companies like Twitter in their early days.
Source: Beck, K., & Andres, C. (2004). Extreme Programming Explained: Embrace Change (2nd Edition). Addison-Wesley Professional.

Lean Software Development

Derived from Toyota Production System
Principles: Eliminate waste, amplify learning, decide late, deliver fast
Focus on creating value and reducing non-value activities
Uses value stream mapping to identify inefficiencies
Example: Intuit (maker of TurboTax and QuickBooks) applies Lean principles to eliminate waste in their development process, enabling them to deliver faster updates while maintaining quality through techniques like A/B testing and customer feedback loops.
Source: Poppendieck, M., & Poppendieck, T. (2003). Lean Software Development: An Agile Toolkit. Addison-Wesley Professional.

Traditional Methodologies

Traditional methodologies originated in manufacturing and engineering industries, where structured, sequential processes were essential for efficiency and quality control. The Waterfall model, one of the earliest formalized approaches, was introduced in 1970 by Dr. Winston W. Royce as a way to manage software development with clear, linear phases like planning, design, implementation, testing, and maintenance. These methods emphasize predictability, documentation, and rigorous upfront planning, making them ideal for projects with stable requirements. 🏗️📊

Waterfall

Sequential, linear approach
Distinct phases: Requirements, Design, Implementation, Verification, Maintenance
Each phase must be completed before moving to the next
More suitable for projects with well-defined requirements
Example: NASA used Waterfall methodology for the Space Shuttle software development, where requirements were extremely well-defined and changes during development could have catastrophic consequences. The approach led to incredibly reliable software with a defect rate of less than 0.1 errors per 1,000 lines of code.
Source: Fishman, C. (1996). They Write the Right Stuff. Fast Company Magazine, Issue 6.

Spiral Mode

Combines iterative development with systematic aspects of waterfall
Four phases: Planning, Risk Analysis, Engineering, Evaluation
Risk-driven approach that emphasizes risk assessment
Suitable for large, complex systems
Example: The Windows operating system development at Microsoft has historically used aspects of the Spiral model, particularly in earlier versions, allowing them to address risks early while developing a complex software system through multiple iterations.
Source: Boehm, B. W. (1988). A Spiral Model of Software Development and Enhancement. IEEE Computer, 21(5), 61-72.

V-Model

Extension of waterfall with corresponding testing phase for each development stage
Emphasizes verification and validation activities
Testing is planned in parallel with development activities
Higher success rate than traditional waterfall
Example: Siemens uses the V-Model for medical device software development, where validation and verification are crucial for regulatory compliance and patient safety. Each design phase has a corresponding testing phase to ensure requirements are met.
Source: International Medical Device Regulators Forum. (2015). Software as a Medical Device (SaMD): Clinical Evaluation. IMDRF/SaMD WG/N41FINAL:2015.

Scaling Frameworks

Scaling frameworks originated from the need to extend Agile methodologies beyond small teams to large enterprises. As Agile gained popularity in the early 2000s, organizations faced challenges in coordinating multiple teams while maintaining agility. Frameworks like SAFe (Scaled Agile Framework), LeSS (Large-Scale Scrum), and Spotify’s Model emerged to provide structured approaches for scaling Agile across departments and business units, ensuring alignment, collaboration, and efficiency at scale. 🚀📈

SAFe (Scaled Agile Framework)

Framework for implementing agile practices at enterprise scale
Multiple configurations: Essential, Large Solution, Portfolio, Full
Organizes work in Agile Release Trains (ARTs)
Includes concepts like Program Increment (PI) Planning
Example: Cisco implemented SAFe to coordinate work across 800+ teams worldwide. They organize quarterly Program Increment planning sessions where teams align on priorities and dependencies, resulting in faster time-to-market for their networking products.
Source: Scaled Agile, Inc. (2019). Cisco Case Study. Scaled Agile Framework.

LeSS (Large-Scale Scrum)

Framework for scaling Scrum to multiple teams
Two variations: LeSS (2-8 teams) and LeSS Huge (8+ teams)
Single Product Owner, multiple teams working on same Product Backlog
Emphasizes feature teams over component teams
Example: J.P. Morgan Chase adopted LeSS for their trading systems development, enabling multiple teams to work on the same product backlog while maintaining a coherent architecture and reducing coordination overhead.
Source: Larman, C., & Vodde, B. (2016). Large-Scale Scrum: More with LeSS. Addison-Wesley Professional.

Nexus

Developed by Scrum.org for scaling Scrum
Integration team coordinates 3-9 Scrum teams
Introduces Nexus Sprint Planning, Nexus Daily Scrum, Nexus Sprint Review
Focuses on integration challenges across teams
Example: Schlumberger, an oil and gas technology company, has used Nexus to coordinate the development of their digital platform across multiple Scrum teams, with a Nexus Integration Team ensuring that integration issues are identified and resolved quickly.
Source: Schwaber, K. (2015). Nexus Guide: The Definitive Guide to Scaling Scrum with Nexus. Scrum.org.

Disciplined Agile (DA)

Hybrid approach that combines elements from multiple methodologies
Context-driven, not prescriptive
Organized around process goals rather than specific practices
Allows teams to choose their way of working
Example: IBM has implemented Disciplined Agile across various business units, allowing teams to tailor their processes based on their specific context while maintaining enterprise governance. This flexibility helped them during their large-scale digital transformation.
Source: Ambler, S. W., & Lines, M. (2020). Choose Your WoW!: A Disciplined Agile Delivery Handbook for Optimizing Your Way of Working. Project Management Institute.

Development Frameworks and Approaches

Development frameworks and approaches like DevOps, DevSecOps, FDD (Feature-Driven Development), and BDD (Behavior-Driven Development) emerged to improve software delivery speed, collaboration, and quality. Each approach was developed to address specific challenges in software development, security, and collaboration, shaping modern engineering practices. 🚀

DevOps

Cultural and technical practice that unifies development and operations
Key practices: CI/CD, infrastructure as code, monitoring, automation
Focus on shorter development cycles and reliable delivery
Tools ecosystem includes Git, Jenkins, Docker, Kubernetes
Example: Netflix has built a sophisticated DevOps culture that enables them to deploy thousands of changes to production daily. Their Chaos Monkey tool deliberately introduces failures to test system resilience, ensuring their streaming service remains reliable despite constant updates.
Source: Humble, J., & Farley, D. (2010). Continuous Delivery: Reliable Software Releases through Build, Test, and Deployment Automation. Addison-Wesley Professional.

DevSecOps

Integrates security practices into DevOps process
“Shift left” approach to security testing
Automated security validation and compliance
Security as a shared responsibility
Example: Capital One implemented DevSecOps practices to integrate security into their development pipeline, using automated security scanning tools that run with each code commit. This approach helped them identify and address vulnerabilities earlier, reducing security incidents while maintaining rapid deployment.
Source: Myrbakken, H., & Colomo-Palacios, R. (2017). DevSecOps: A Multivocal Literature Review. In Software Process Improvement and Capability Determination (pp. 17-29). Springer.

Feature-Driven Development (FDD)

Model-driven, short-iteration process
Five main activities: Develop overall model, build feature list, plan by feature, design by feature, build by feature
Feature teams organized around feature sets
Regular builds and progress tracking
Example: Danske Bank used FDD to develop their mobile banking application, organizing work around customer-centric features. This approach helped them prioritize features that delivered the most value to customers while maintaining a consistent domain model.
Source: Palmer, S. R., & Felsing, J. M. (2002). A Practical Guide to Feature-Driven Development. Prentice Hall.

Behavior-Driven Development (BDD)

Extension of Test-Driven Development
Uses natural language constructs to express behaviors and expected outcomes
Bridges communication gap between technical and non-technical stakeholders
Tools like Cucumber, SpecFlow implement Gherkin syntax for specifications
Example: The Guardian newspaper uses BDD for their website development, with product owners writing acceptance criteria in Gherkin syntax (Given-When-Then format). This approach has improved communication between business and technical teams, ensuring that developers build exactly what the business needs.
Source: North, D. (2006). Introducing BDD. Better Software Magazine.

Process-Oriented Methodologies

Process-Oriented Methodologies, like Personal Software Process (PSP) and Team Software Process (TSP), were developed by Watts Humphrey at Carnegie Mellon University to improve software quality and team productivity. 🚀📊

PSP (Personal Software Process)

Developed by Watts Humphrey at the Software Engineering Institute (SEI)
Structured framework for individual developers to improve personal productivity and code quality
Emphasizes data collection, measurement, and continuous improvement
Progressive learning path with increasing levels of sophistication (PSP0 to PSP3)
Key components: Time tracking, defect logging, size and effort estimation, code reviews, quality management
Example: Tata Consultancy Services (TCS) implemented PSP training for their developers, resulting in significant quality improvements. Engineers who adopted PSP practices reduced defect rates by over 75% and improved estimation accuracy. The structured approach to tracking time, defects, and size helped individual developers better understand their performance and systematically improve their work.
Source: Humphrey, W. S. (2005). PSP: A Self-Improvement Process for Software Engineers. Addison-Wesley Professional.

TSP (Team Software Process)

Extension of PSP principles to the team level
Provides a framework for building and managing high-performance software teams
Emphasizes self-directed teams with defined roles and responsibilities
Includes detailed launch process and regular checkpoints
Key components: Team launch and role assignment, detailed planning, quality management system, risk management, weekly team meetings
Example: Microsoft’s Windows Embedded team adopted TSP for firmware development, resulting in a 40% reduction in system test defects and improved schedule predictability. The team used TSP’s structured launch process to establish clear roles and create detailed plans. The emphasis on quality management through inspections and peer reviews helped catch defects early in the development process, significantly reducing testing and maintenance costs.
Source: Humphrey, W. S. (2006). TSP: Leading a Development Team. Addison-Wesley Professional.

Combined PSP/TSP Implementation

Example: Adobe Systems implemented both PSP and TSP for their Photoshop development, achieving near zero-defect releases. Developers first learned to track their own work through PSP, then formed TSP teams with clear roles. The structured approach to planning, estimation, and quality management helped them deliver complex features with significantly fewer defects and more predictable schedules compared to their previous development process.
Source: Wall, D. S., McHale, J., & Pomeroy-Huff, M. (2005). Case Study: Accelerating Process Improvement by Integrating the TSP and CMMI. Software Engineering Institute, Carnegie Mellon University.

Finding Your Right Approach

Let’s be real – there’s no magical one-size-fits-all solution when it comes to software development methodologies. What works brilliantly for a Silicon Valley startup might fall flat in a highly regulated financial institution. The “best” methodology depends on a complex interplay of factors: your company culture, team size and distribution, technical stack, regulatory requirements, and even the personalities of your team members.

Some organizations thrive with the structure and predictability of traditional approaches, while others flourish with the adaptability of agile methods. Many successful companies are embracing hybrid approaches, cherry-picking the most valuable practices from different methodologies to create something uniquely tailored to their needs.

The Bottom Line

The most important thing is to be intentional about your process and willing to adapt as you learn. Remember, methodologies are tools to serve your goals, not rigid dogmas to follow blindly. Your development process should evolve as your organization grows and your needs change.

Want to figure out which approach might work best for your unique situation? Let’s chat! We’d love to discuss your current state, assess your process maturity, and help you chart a path forward that aligns with your software development goals and business ambitions. Whether you’re looking to speed up delivery, improve quality, enhance team collaboration, or all of the above – we’ve got insights and experience to share. Drop us a line, and let’s start the conversation about transforming your software development journey!

March 14, 2025 0 Comments by MSc. Adrian Lopez

AgileeCommerce

Getting Started with Custom Marketplace Development

M

arket conditions over recent years created a perfect storm for an already growing eCommerce industry to tighten its grip on retail market share. While physical sales from bricks and mortar stores showed a steady decline, eCommerce peaked at more than $5 trillion in 2021, a 16% increase from $4.2 trillion in 2020.

As more businesses discover they can no longer ignore the lucrative online marketplace, they are more than eager to take advantage of established platforms like Wish, Shein, eBay, Etsy, and Amazon for getting their products in front of more customers.

However, established marketplaces are not the only way to get your goods in front of an online audience. Custom marketplace development offers many opportunities for you to create your eCommerce multi-vendor platform that you control.

This multi-vendor marketplace guide will discuss why you should consider developing a Custom eCommerce Marketplace, the available development options, and how to get started.

What is a Multi-Vendor Marketplace?

A multi-vendor eCommerce marketplace is the online equivalent of a physical mall where multiple vendors can sell products and services from a single website. A marketplace operator does not own any stock. Instead, they bring vendors together and act as the middleman by connecting buyers with sellers.

In return for bringing buyers and sellers together, the marketplace owner receives a commission from every sale. Sellers gain extra exposure for their brand and access to more online traffic than they could achieve on their own.

Multi-Vendor Marketplace Advantages

How customers shop is evolving, and online purchases feature more and more in consumer spending habits. A multi-vendor eCommerce marketplace creates more options for consumers while also giving them more control over their shopping experience. Here are just a few of the ways an online marketplace can benefit consumers and your business.

Diversify your income strategy: A variety of income strategies become available with a multi-vendor marketplace. For example, you could charge a small commission for every third-party sale, and you can create an extra income stream by charging for a premium listing or for appearing in related products or also bought sections.

Get more and higher-quality customer data: The data collected from every interaction is valuable for determining customer behaviors and identifying trends. High-quality data helps you segment customers more efficiently and improve conversions by delivering a more personalized experience.

Test new products and services: Bringing new brands and products onto the platform offers more opportunities for testing without investing in your own inventory.

Easier to scale: A multi-vendor marketplace is much easier to scale than a single-vendor eCommerce platform, as the need for inventory investment is significantly reduced.

Offer more variety: Today’s consumers crave more options and control over their shopping experience. By bringing on multiple vendors you can increase the amount of variety your marketplace can offer, which will help you reach a wider audience.

Types of eCommerce Marketplaces

An eCommerce marketplace will fit within one of three different models:

Global Marketplaces
Horizontal Marketplaces
Vertical marketplaces

Global Marketplace

A global marketplace caters to an international demographic and sells products from every niche and industry. Amazon is an excellent example of a global marketplace, as it is famous for selling everything to everyone.

Horizontal Marketplace

A horizontal marketplace is more focused on its product range. While it does cater to many different industries, the products on offer all share some common characteristics. For example, every industry needs office furniture or Amazon’s retail products that ship to your home.

Vertical Marketplace

Vertical marketplaces offer specific products to a specialized demographic. There can be many different sources in a vertical marketplace, but only one type of product. Etsy is a good example of a vertical marketplace that caters to the arts and crafts community. UNI Diamonds is another vertical marketplace that sells just one type of product, diamonds, but customers have a wide selection of vendors from which to choose. Also Uber is an example of vertical marketplace, since it only sell ride share.

Marketplace builder business model services and retail

eCommerce Marketplace Business Models

When you know you are ready to grab your share of the growing eCommerce trade, you will still need to settle on a business model, of which there are three main options:

Dropshipping
Franchisee
Retailer

Dropshipping Marketplace

A dropshipping retailer has an online portal that lists products from many different vendors but does not carry any physical stock. Rather than storing inventory, the order is shipped from another warehouse using the 3rd party seller’s branding.

Dropshipping works through split orders. Third-party sellers purchase in bulk from a manufacturer, but instead of shipping the entire inventory to the third-party seller, a manufacturer will split the order and deliver products directly to a third-party seller’s customers.

Franchisee Marketplace

A franchisee marketplace model works well for localized selling. Franchisees can come together in a single marketplace to offer goods and services online to a local community. The marketplace owner drives sales and traffic through localized advertising, local SEO, and content creation.

Retailer Marketplace

In the retailer marketplace, the operator delivers an online platform where third-party sellers can offer their goods and services. A third-party seller makes the sale, but the product is delivered by another manufacturer, wholesaler, or retailer.

Traditional CMS, Hybrid, or Headless Marketplace? Which is Better for Custom Marketplace Development

Once you have settled on a business model and chosen whether you want to go global or stay local, your next goal will be to select an eCommerce platform that will suit your goals.

Online businesses are tasked with managing a huge volume of content creation and changes daily. Content-driven experiences are increasingly critical for attracting new leads and prospects to your marketplace.

In a traditional CMS, the frontend, where customers do all their browsing and purchasing, are inextricably entwined with the backend where all the data is processed.

A regular CMS is much easier to set up and deploy than headless or hybrid options. However, they are more complex when scaling the business, or migrating to a different platform. They are also limited in features for integrating third-party content from many different vendors.

What is a Hybrid Marketplace?

A hybrid marketplace includes support for multiple content delivery systems. Your content creation team is free to use whatever CMS they are comfortable with, while developers have the capacity to deliver the content across many different channels.

What is a Headless Marketplace?

The headless marketplace decouples the frontend CMS without limiting your ability to publish new content. You can easily reuse content on multiple channels, use any front-end framework to tailor the customer experience, and accept content from multiple vendors without compatibility issues. A headless CMS means you can work your business from a content-first approach because you can use the RESTful API to display it in any way you need.

Advantages of a Headless Marketplace

The eCommerce landscape is always evolving, so having a flexible platform is critical to the survival of a multi-vendor marketplace. Here are just a few advantages you will appreciate when working with a headless marketplace.

Reduced Development and Maintenance

You can use whatever programming language you need for the backend and create your presentation layer for the front end without having to worry about compatibility issues. Developers can work faster because they aren’t confined to the typical limitations of a traditional CMS.

It’s a Low-Cost Future Proofing Solution

A development team can quickly create new functionality on an existing website. For example, let’s say you have created a marketing campaign that uses many different microsites to feature new products or services.

The marketing team can produce and format the content without having to wait for a bunch of new content templates from developers. You are free to manage and change your content at any time across multiple channels.

Flexible Frontend Development

A headless CMS removes the limits for creating an exceptional customer experience because you no longer have design constraints. Unlike a traditional CMS, where tinkering on the frontend can impact the backend processes, the back end of a headless CMS is not impacted by frontend development. Because they are kept separate, your website visitors will enjoy faster loading times for web pages.

Profiting from the rising popularity of eCommerce will mean you need to carefully consider your approach. Our multi-vendor marketplace guide should help you make an informed choice. The products you sell, the vendors you will partner with, and the demographic you serve will all have an influence on custom marketplace development. If you are ready to get more products in front of more customers, call Towa Software today to learn how to get started.

Towa’s Tech Team will turn your marketplace and e-commerce ideas into reality

Towa’s Tech Team provides Nearshore software development services. We’ll streamline the process of developing advanced and customized marketplace solutions for customers. Our top objective is to provide our customers with the means to develop dynamic and user-friendly online marketplaces rapidly.

All of which aids our clientele in attracting more potential customers and converting them into paying customers.

Towa’s Tech Team allows for simplified talent augmentation procedures. Through our Nearshore service, we can connect you with a technical crew that is only a short plane ride away, is in the same time zone as you are, and can communicate with you in your native language.

Talent augmentation for remote engineers allows businesses to realize better economies of scale and, most importantly, greater specialization. With this strategy, companies can focus on what they do best.

About Towa

Towa is a leading firm across the United States and Mexico for software engineering and outsourcing, including QA and testing. We offer from Mexico our over +300 engineers capabilities as nearshore delivery model service offerings.

Towa Software has over 20 years of experience to guarantee the quality of every line of code, we are proud of our products and services delivered. We recommend starting small and building trust with your provider before scaling.

As a leading software development outsourcing company in the USA and Mexico, we have extensive experience in many fields including fintech, banking, payments gateways, e-commerce, retail, marketplaces, health care, Omnichannel, and many more.

You can contact us at support@towasoftware.com or give us a call at +1 (210) 787-4525 for more information.

December 14, 2022 0 Comments by MSc. Adrian Lopez

AgileeCommerceTeam Augmentation

Cost To Build A Multi-Seller Marketplace: How To Create A Successful Business

S

o, let’s say you’ve settled on creating an online market. You might have the following questions in mind: How to Make an Online Market App Like Etsy, Amazon, or Airbnb a Reality? The next question is, how much does it take to build a thriving online market? What technology stack components should you prioritize when creating your retail platform? Alternatively, what characteristics do your virtual marketplaces require?

Increased usage has led to the rapid expansion of the online marketplace platform. In the United States, internet retail sales reached $504.6 billion in 2018, and they are expected to rise to over $735 billion by 2023. There is no denying the success of the P2P business. As a result, launching one’s online store is gaining popularity.

The typical cost of creating an online marketplace is indeed variable. The entire estimated cost of developing a marketplace website that is likely to generate income is laid out in this article. Identifying the appropriate technology stack is the first step toward creating a successful online marketplace.

A technology stack for business growth

Think about the development environments you’ll be working in when planning a marketplace. To what end is this valuable information for business owners? The performance and maintainability of the application will be affected by the technology stack you choose to use. In a nutshell, slow page loads, scalability issues, and update failures can result from using the incorrect tools.

The price tag for building a marketplace website can fluctuate widely based on the technologies you choose to implement. You should select a framework that will facilitate a rapid app development cycle and release.

The requirements for a given marketplace determine which technologies we employ to develop its website. But, the following technologies are commonly used in our marketplaces:

Frontend

JavaScript
Angular
ReactJS
PHP
Amplience CMS

Backend

PHP
MongoDB
API Rest
Node.js

Integrations

Customer.io, Klaviyo
Stripe, Paypal, USAePay, Gravity Payments, OpenPay, Mercado Pago
ShipEngine
Avalara
Twilio
Legacy
Amazon EC2

Remember that we only covered the most important frameworks and integrations; in reality, the stack will include even more technologies. If we explore alternative front-end frameworks, we may need to revise the entire technology stack if we explore alternative front-end frameworks (Vue.js, Headless, Amplience CMS).

When a company does talent augmentation, it can focus its efforts on what it does best. That eliminates the need for businesses to spend resources on finding and training in-house software engineers. It is preferable to hire a consulting firm to handle the work. The result is streamlined processes and better financials.

Core features for a multi-vendor marketplace

It isn’t easy to put a price on creating an online marketplace without first defining the features that must be included in the final product.

We always advise our clients to maintain a minimum viable product (MVP) in the market first. That way, you can put your theory to the test with little cash outlay. You can expand your platform’s capabilities in the future.

Creating an online marketplace for your goods and services can help you focus your efforts. Keep in mind, too, that first impressions count for a lot. Essential features of a marketplace are presented to aid in developing a functional marketplace.

1. Simple registration procedure

All participants in an online marketplace must register with identifying information (name, gender, date of birth, email, phone number, etc.) if one is to be established.

Also, allowing consumers to join via social platforms is a convenient way to sign up. Facebook, Linkedin, Google logins auth are also crucial.

Make registration as simple as possible to retain visitors who may become paying clients.

2. User profile

The most valuable users in the marketplace serve in two distinct capacities: as buyers and as sellers. Therefore, accounts must be as complete as possible. Admin should be able to add custom fields as required. For example, users can quickly sign up and view the service provider’s details. Vendors should maintain transparent control over all inventory and listings, stock data and adjust visibility controls as needed.

3. Homepage

Making your homepage unique is usually a good idea. Customers universally like a straightforward menu structure. User interface and experience design (UX/UI) should not be neglected. To save you time, here are some pointers for improving the visual appeal of your minimum viable product in online marketplaces:

Web design that is easy to navigate, customizable search fields, and aesthetically pleasing
Incorporate previously viewed items to increase conversion rates.
Insert list of best-sellers
Including a section with testimonials might help build credibility with site visitors.

4. Manage my listings (for Merchants)

Adding a listing with more detail is a crucial feature for vendors. Customers will have a better overall experience once they arrive at your website, thanks to the curated product catalog you’ve created.

Easily manage to create and update your pricing, product details or service details from a Vendor Portal for an operating seller, having the listings updated is key for success and lot of sales.

5. Flexible payment options

The total amount due is calculated mechanically by the payment system with tax calculation and shipment fees. Customers must be able to view their order summary and payment history. Offering many payment methods is convenient for potential customers. Users of your online marketplace must be able to make purchases using credit cards, Klarna PayPal, Stripe, any other payment processor, or even crypto.

6. Wishlist or favorites

A wishlist where clients can save items they consider buying is a powerful marketing tool. That’s another strategy for making a marketplace website that draws in more visitors. When customers communicate their wish lists to their friends and family, it generates free exposure for your marketplace.

What factors affect the budget in creating a new market?

The amount of money put into a marketplace is proportional to the problems it addresses. The amount of money needed to fund its creation depends on several factors. So, let’s examine the components that go into the final price tag of a marketplace website.

Ready-made (Template-based) vs. custom development (API or scratch)

At first look, it may seem that once you’ve purchased pre-built software (Sass/Paas), you won’t have to make any further adjustments to your website or spend additional money. But if far from reality, in order to maintain and customize to your business needs you will need to hire someone.

Extra staff members must be hired to implement this program. The cost may also increase as a result of necessary improvements. Not to mention the cost of acquiring the cloud servers required to ensure consistent performance. In addition, customizing a template to fit the logic of your organization can be challenging.

Therefore, making your online marketplace website customizable will take much more time and energy. This could result in a significant increase in both development time and cost.

Set of features

The cost to develop a marketplace website is proportional to the complexity of the underlying platform. When you present your ideas to a software agency, they will break down the cost of each feature for you.

To launch a thriving marketplace, it is sufficient to implement only the most essential features at the outset. However, don’t forget to factor in all the “extras,” as they will determine how much money it will cost to maintain the website. Be sure to weigh all the options that could lead to more costs down the road. Lastly, be sure that you and your consumers will profit from each feature you intend to implement in your marketplace.

Towa’s Tech Team will turn your marketplace and e-commerce ideas into reality

All of which aids our clientele in attracting more potential customers and converting them into paying customers.

About Towa

You can contact us at support@towasoftware.com or give us a call at +1 (210) 787-4525 for more information.

November 10, 2022 0 Comments by MSc. Adrian Lopez

AgileOutsourcingTeam Augmentation

Discover why USA and Canada Hire Top Talent from LATAM

O

ver the past few decades, there has been a rise in the popularity of outsourcing as a management strategy. Outsourcing remote engineers have become increasingly common due to globalization and digitalization, allowing American businesses to send work to other countries. In recent years, the nearshore outsourcing model has become one of the most well-liked types of outsourcing.

Nearshore outsourcing has many advantages which are used by many businesses. That has allowed them to cut back on overhead and streamline existing procedures, allowing them to devote more time and energy to their most essential tasks.

It entails sending specific tasks to a third-party provider in a country close to the home office. Companies in the United States often outsource work to other countries in Mexico and Latin America.

Nearshore outsourcing has several benefits, like being more convenient due to its proximity, sharing similar culture, sharing the same time zone, etc. In further depth, allow us to investigate these benefits of staff augmentation for remote engineers.

Advantages of Nearshore Outsourcing

Businesses can gain a lot by staff augmentation of software development work in countries with a developed information technology industry. The following are a few of the main advantages of this type of outsourcing:

Streamlined Operations

Improved Collaboration

Nearshore outsourcing improves teamwork in which two companies are located in the same time zone. In this situation, the working hours of different parties often overlap significantly. It facilitates efficient communication without requiring people to work at inconvenient hours.

Optimized Operating Timelines

Businesses can save time and money by outsourcing to nearshore contractors. Outsourcing allows companies to save time by delegating specific tasks to outside contractors. Time to market for products and services is reduced, which is vital for the success of any organization.

Focus on Core Competencies

To recap, nearshore outsourcing allows businesses to devote more resources to what they do best. What this means for companies is that they concentrate their limited resources on the things that matter the most. Employees are not overworked, and so spared burnout. In a sense, outsourcing frees up time and resources for companies to focus on what matters.

Extended Talent Pool

When you nearshore your software development, you can locate a more qualified and committed crew for your projects. The region of Latin America has established itself as a technological powerhouse. It’s risen to prominence as a prime location for nearshore software development. Rather than relying on in-house teams, many American companies have turned to top developers in Latin America.

The Mexican labor force is also notable for its high education, expertise, and experience. Outsourcing software development to our southern neighbor has been synonymous with guaranteed excellence.

Using nearshore outsourcing, companies can use other countries’ infrastructure and technological prowess in addition to the right talent. In this way, American businesses may create high-quality, necessary IT services and products.

Lower Engagement Costs

When it comes to developing software, high-quality resources are in short supply. The price tag ends up being rather high. But the nearshore outsourcing strategy allows businesses to tap into the extensive worldwide pool of resources and hire at a lesser cost. As a result, companies can more effectively cut their engagement expenses, allowing them to reduce development costs and sell their products to clients at affordable prices.

Cultural and Geographical Closeness

Nearshore outsourcing centers close to the headquarters of the actual company. That translates to less of a gap between the teams’ schedules due to time zone differences. It allows for simple cooperation between team members and, if necessary, travel.

Nearshore outsourcing’s other major perk is fostering a sense of cultural familiarity between your business and the outsourcing firm. Because of this, communication and collaboration are facilitated by shared linguistic, behavioral, and cultural norms.

Improved Communication Channels

Since the time zones are so close together and the languages are so similar, the company and its suppliers can quickly and effectively communicate. The ability to communicate effectively is critical for fostering productive partnerships and increasing the rate of product development.

Businesses that use the offshore model to send work to another country frequently face linguistic and cultural difficulties. The nearshore outsourcing strategy eliminates these distractions and creates a more harmonious office setting.

Consistency in Law and Governmental Order

Canada and the United States have much, not just a common language and culture. Many similarities exist between regional and federal regulations. In this way, trade secrets are easier to safeguard. When politics are stable, businesses can rest easy knowing their investments are safer for the long haul. It will also aid in keeping projects on track and under budget.

Improved Productivity

The efficiency of your staff will increase thanks to nearshoring. You can, for instance, outsource the management of your back-end development to a team of experts so that you can focus solely on the most critical aspects of the project.

Constant midnight shifts can also lead to burnout for your staff. By using nearshoring, you can increase productivity and employee satisfaction by eliminating or reducing the number of night shifts.

Lower Costs

The outsourcing business model is conceived as a means to achieve that end. While it isn’t the driving force behind offshoring or new approaches any longer, it nonetheless carries considerable weight.

The exchange rate is particularly favorable for American enterprises that outsource project development to Latin American countries. The lower value of the local currency relative to the US dollar can translate into less expensive development costs.

Wrapping Up

Nearshoring software development is a rapidly growing form of outsourcing due to its many benefits to the software development industry. Nearshoring can be a great option to traditional outsourcing due to its many benefits, including ease of access, greater process control, and fewer linguistic and cultural hurdles.

Every company has different needs and expectations, at Towa, we have been working with Small and Medium size companies providing expert software design and development services so you can create world-class products.

Our nearshore development teams deliver the benefits of tech expertise, bilingual collaboration, time zone alignment, and competitive costs.

Fuel your business with IT experts to speed innovation and increase ROI.

Grow or establish your IT teams knowing you’ll achieve your objectives and save money. Towa’s Tech Team helps businesses like yours find qualified bilingual engineers so you may expand your operations. You may not realize how close your software development team of engineers and designers is. Our Nearshore service puts you in touch with a tech team that is only a short flight away, shares your time zone, speaks your language, etc.

It takes a lot of effort and money to hire employees. But, with Towa’s Tech Team, you can streamline the process of talent augmentation. If you want to expand your business, you’ve come to the right place. We charge a blended rate and don’t require any long-term contracts.

About Towa

You can contact us at support@towasoftware.com or give us a call at +1 (210) 787-4525 for more information.

October 18, 2022 0 Comments by MSc. Adrian Lopez

Software Development Services

Engagement

Services

Software Development Services

Engagement

Services

How to Set Up a Distributed Workforce

Distributed Workforce

The organizations that succeed will be the ones that build it with intentionality

For fast-growing and cost-conscious companies

How to Set Up a Distributed Workforce:

Embracing Intentional Design

Start With Purposeful Planning

Design Communication Flows, Not Just Tools

Build Trust and Flexibility Into the Culture

Rethink Collaboration Spaces

Prioritize Employee Wellbeing and Belonging

Continuously Iterate and Improve

Transform The Work Environment

In Summary

Let's talk

Methodology: Choose the Right Software Development Approach for Your Organization

Methodology Matters:

Choose the Right Software Development Approach for Your Organization

Software Development Approaches

Agile Methodologies

Scrum

Kanban

Extreme Programming (XP

Lean Software Development

Traditional Methodologies

Waterfall

Spiral Mode

V-Model

Scaling Frameworks

SAFe (Scaled Agile Framework)

LeSS (Large-Scale Scrum)

Nexus

Disciplined Agile (DA)

Development Frameworks and Approaches

DevOps

DevSecOps

Feature-Driven Development (FDD)

Behavior-Driven Development (BDD)

Process-Oriented Methodologies

PSP (Personal Software Process)

TSP (Team Software Process)

Combined PSP/TSP Implementation

Finding Your Right Approach

The Bottom Line

Getting Started with Custom Marketplace Development

M

What is a Multi-Vendor Marketplace?

Multi-Vendor Marketplace Advantages

Types of eCommerce Marketplaces

Global Marketplace

Horizontal Marketplace

Vertical Marketplace

eCommerce Marketplace Business Models

Dropshipping Marketplace

Franchisee Marketplace

Retailer Marketplace

Traditional CMS, Hybrid, or Headless Marketplace? Which is Better for Custom Marketplace Development

What is a Hybrid Marketplace?

What is a Headless Marketplace?

Advantages of a Headless Marketplace

Reduced Development and Maintenance

It’s a Low-Cost Future Proofing Solution

Flexible Frontend Development

Towa’s Tech Team will turn your marketplace and e-commerce ideas into reality

About Towa

Cost To Build A Multi-Seller Marketplace: How To Create A Successful Business

S

A technology stack for business growth

Core features for a multi-vendor marketplace

1. Simple registration procedure

2. User profile

3. Homepage

4. Manage my listings (for Merchants)

5. Flexible payment options