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What does it cost to run a marketplace platform?

This article breaks down what it actually costs to run a marketplace platform once real users show up, with a thorough comparison between custom infrastructure, Render, and Sharetribe.

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Boyan Tabakov, Chief Security Officer

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Please note: The Sharetribe pricing referenced in this article comes into effect at the end of September 2026. If you're reading this before then, check our pricing page page for current rates.

For 10+ years at Sharetribe, the question I've heard most from marketplace founders has been: how much does it cost to build my marketplace? Because of AI, that question is becoming less relevant. Five years ago, a non-technical founder with a unique marketplace idea needed to invest a four to five-figure sum to get custom functionality built on top of Sharetribe's APIs. Today, that same founder can often make those customizations themself, in a matter of days or even hours, for the price of an AI coding tool subscription.

That leaves a different question. As Sharetribe's head of DevOps and infrastructure, I've always found it the more interesting one, anyway: how much does it cost to run the marketplace you built?

Today, the cost of running is the main cost center for any software business. In this article, I'll analyze the costs of running a custom-built marketplace application and compare them to running on Sharetribe's infrastructure instead.

Choose the infrastructure provider

When I started my career in the early 2000s, at an IT company in Bulgaria, I operated physical racks that contained customer data. Today, it makes no sense for most small businesses to own their hardware: nearly all of them run their software on the cloud, meaning the data is stored in a server farm of a large cloud infrastructure provider.

For the last 15 years, my work has focused on Amazon Web Services (AWS), so I’ll use it as the main benchmark in this article. AWS is the most widely used cloud provider (including by Sharetribe). AWS would also be my choice of vendor if I had to set up the infrastructure for a custom-built marketplace today. I expect Amazon’s main competitors, Microsoft Azure and Google Cloud Platform, to have similar costs.

As a point of comparison, I'll examine a newer entrant to the market, Render. Render is a platform-as-a-service (PaaS) provider. PaaS solutions (Render's main competitors include Heroku, Fly.io, and Railway) abstract away much of the complexity involved in running infrastructure on AWS or other cloud providers. The downside is that they offer less flexibility for scaling businesses. At scale, they also tend to cost more. 

In the early days, though, Render or another PaaS can be great for getting up to speed quickly. Render is a common choice for Sharetribe customers for hosting their customized client applications, and we have a guide for setting it up. I’ll use Render's costs as a benchmark for this article. 

Set up a production environment

To launch your marketplace, the first step is to set up your production environment: the infrastructure that powers your live marketplace with real user data. This section assumes no users (yet), so we're only looking at the cost of getting something up and running.

Throughout, I'm assuming a production-grade setup: high-availability, self-healing, and enough capacity to run reliably 24/7. You can run leaner with deep in-house technical expertise, but I wouldn't recommend it otherwise. I will prefer managed services in the setup, as they outsource a considerable chunk of the operational complexity to the cloud provider. Finally, I'm assuming no yearly commitments, since this article covers early-stage costs; both AWS and Sharetribe offer discounts if you commit annually. 

Looking at the simplified pricing plans of PaaS providers, one might get the impression that a $25/month plan (plus a small fee for initial compute) is all you need to run a production-grade application. That's true only for a lightweight client application with no database, search index, or background workers of its own, or other heavy lifting that’s required for an actual full-stack application. A customized Sharetribe frontend, is a good example, since Sharetribe's hosted infrastructure handles the rest.

If you build your marketplace from scratch, without relying on a SaaS provider like Sharetribe, the reality looks quite different. My analysis puts the minimum cost of running a fully custom-built, production-grade application at $250 to $475 per month, versus $298 a month for the Sharetribe-powered equivalent ($259 for Sharetribe, $39 for Render). Below, I break down what makes up these numbers. (Prices reflect late June 2026 and are subject to change.)

I'll go into more detail about what constitutes these costs below. Disclaimer: I'm using prices from late June 2026. They are subject to change if the solutions listed change their pricing.

Compute

The first item on our list is compute resources. These are the pieces of infrastructure that would actually run the custom backend code of the marketplace. These days, the best place to start on AWS is with the Elastic Container Service and its managed serverless option called Fargate.

The resource unit in Fargate is called a task. A minimum viable production-grade setup consists of three running tasks: two web server tasks and one worker. The web server tasks handle requests to store or retrieve data when a user does something in your marketplace (like signing up, creating a listing, searching for products, etc). A worker is a background job that performs actions that don't need to be acted on immediately when a user takes an action in the marketplace, like sending data to your analytics or marketing automation platform or sending email notifications. Without these background jobs, your users will experience slower page load times, as they will need to wait for your system to perform all those tasks immediately before they can proceed. 

This setup would amount to approximately 3 x $14.42 ≈ $43.25/month, assuming resource configuration with 0.5 vCPUs and 1GB of RAM per task. Less than this, and the setup might become resource-constrained, causing issues with even moderate usage spikes, requiring more frequent human intervention.

ServiceCost/month
AWS with Elastic Container Service and Fargate$43.25

Database of record

No marketplace can run without a primary database to hold the marketplace data. On AWS, a great place to start is with a managed PostgreSQL server on AWS RDS. I recommend a medium-size instance with burstable CPU capacity and high availability enabled (Multi-AZ in RDS terms).

This would amount to roughly $108.61/month:

  • $100.74 for the RDS Multi-AZ instance (db.t4g.medium instance type, to be exact)
  • $6.35 for 25GB storage (which also covers backups up to 25GB)
  • $1.52 for a bit of additional backup storage

The database is a critical component of the application, and any issue with it will affect the application as a whole. Although the recommended RDS setup comes with high availability, it doesn't easily allow for horizontal scalability, meaning the ability to scale and respond to increasing and decreasing load by adding (or removing) additional database servers on demand. Therefore, as with compute resources, I would not opt for a smaller instance than the above for production workloads. Using a small instance (half the size and cost of my recommendation) can cause the database to run out of resources. In such an event, you would need to manually scale the database and face possible downtime or performance impact. In my opinion, the higher price is worth it, given the added reliability and peace of mind it provides. 

ServiceCost/month
RDS Multi-AZ instance$100.74
25GB storage$6.35
Additional backup storage$1.52
Total$108.61

Load balancing and networking

No high-availability web application setup would be complete without a load balancer to distribute the traffic between the multiple web servers. An Application Load Balancer (ALB) can fulfill this role in our setup and route traffic to the ECS compute resources. The load balancer not only facilitates horizontal scaling of the compute infrastructure, but also allows graceful handling without interruption should an individual compute resource fail. Put simply, a load balancer means that even with lots of concurrent users (which hopefully is the case during your marketing launch), your marketplace is far less likely to grind to a halt.

The ALB bill consists of two parts: 

  1. A fixed fee for each hour of operation of the load balancer: $18.40 per month 
  2. A capacity fee based on the data traffic and requests that the load balancer handles: $5–10. You can expect that part of the cost to be quite minimal at the start.

In addition to the load balancer, expect to need somewhere around $18.25 for five public IP addresses (two for the load balancer and three for the compute resources). An alternative and better long-term option would be to use a NAT gateway to allow the compute containers to communicate with the Internet, but at the minimal scale, paying for 3 IP addresses is cheaper than the minimal charge for a NAT gateway (approximately $35/month).

Long term, one of the easiest costs to underestimate in AWS is data transfer charges: either from AWS out to the Internet or between AWS availability zones (cheaper than data transfer out, but still not free). Luckily, at least at the start, these costs for a new marketplace are most likely very minimal, if not non-existent (100GB/month of data transfer out to the Internet is provided for free). I budget $1/month for 50GB of cross-AZ data transfer.

All in all, the load balancing and networking costs add up to approximately $45/month.

ServiceCost/month (minimum)Cost/month (recommended)
Load balancer fee$18.40$18.40
Capacity fee$5–10$5–10
5 public IP addresses$18.25-
NAT gateway-$35
Total$41.65–46.65$58.40–63.40

Logging and monitoring

If something goes wrong in your marketplace, you need to be alerted about it, so you can address the issue immediately. For this, you need monitoring. Logging, meanwhile, means storing data about what your infrastructure is doing, so that if your monitoring alerts you about a problem, you can go through the logs to discover what caused the problem, and fix it. Application logs, metrics, and alerting can be covered with AWS CloudWatch. The costs here scale pretty much linearly with the actual usage. For a typical app, you can expect no more than $10–15/month for these costs at the start.

ServiceCost/month
AWS CloudWatch$10–15

Object storage

In a marketplace, you typically need to store and manage user-generated data, like images and other files. Storing them in an object storage service makes a lot of sense, as it’s far cheaper and more operationally efficient than using your primary database. On AWS, the object storage service is S3.

S3 pricing scales directly with the amount of data stored (and to a smaller degree, with the amount of API calls to S3). Since the amount of data stored in the early days of a marketplace is typically less than a few gigabytes, the cost of S3 is mere cents.

ServiceCost/month 
AWS S30

In-memory caching

A two-sided online marketplace is a complex application. That complexity can result in slowness in page load times, as there's a lot of code and user data for a browser or device to load for every action. This effect is most noticeable during usage spikes.

A great way to make your application faster and resilient is caching. Furthermore, if a Redis or similar (e.g. AWS's Valkey) server is used, it is a convenient foundation to use for an async job queue implementation as well. Strictly speaking, an in-memory cache is still optional early on. The workload on the compute and database resources likely isn't high enough to make caching essential, and an async queue can be built on top of PostgreSQL as well. On the other hand, using an in-memory cache might make for a more future-proof initial implementation of your marketplace website.

A minimal but highly available in-memory cache, using a Redis-compatible AWS ElastiCache Valkey setup would amount to about $40, providing 1.4GB of memory.

ServiceCost/month 
Redis-compatible AWS ElastiCache Valkey setup $40

Data indexing, text search, and other more advanced search capabilities are more or less essential. Helping users to quickly find the relevant listings that match their criteria is, after all, one of the primary value propositions of a good marketplace.

There are two approaches early on to powering search capabilities. The first is to start with a future-proof setup where the relevant data is continuously indexed for search, using a purpose-built technology, such as Elasticsearch (the most popular solution) or similar. The second is to defer adding such components to the infrastructure at first and rely on the more limited but viable built-in full-text search capabilities of PostgreSQL. This is one of the key early tradeoffs, as the minimal production-grade Elasticsearch infrastructure can be a significant portion of your infrastructure bill. 

The alternative might be cheaper in terms of infrastructure at first, but comes with other downsides: possible limitations to what can be built, increasing the load on the primary database (which could make your entire application slow or unresponsive, possibly forcing you to scale the servers up earlier), as well as switching costs down the line if or when full-blown search indexing infrastructure becomes necessary.

A solid production-grade setup with AWS OpenSearch service amounts to roughly $180/month (three t3.medium.search instances). While significant in the context of the minimal infra costs, the capacity that such infrastructure would have can carry typical marketplace workloads through quite a bit of growth in the usage. Personally, I would recommend using Elasticsearch from the get-go, despite the cost.

ServiceCost/month (minimum)Cost/month (recommended)
AWS OpenSearch 0 (no AWS OpenSearch)$180

Content delivery

Once your marketplace has user-generated content, that content needs to reach visitors quickly. Often, product images are the main content to deliver.

We already discussed marketplace images in the context of storage. The images that users upload can be relatively large files (especially original, high-resolution ones). Downloading them directly without optimization can be both costly and slow, making your marketplace’s page load times unreasonably long. The solution usually has two parts: 

  1. Produce a number of resized and optimized versions of each image. 
  2. Use a content delivery network (CDN) to cache and deliver the optimized image variants globally.

Producing optimized variants can either be done once when a new image is uploaded, in which case the variants are stored along the original in the object store, or on the fly when a new variant is necessary. The former is easier to implement but usually less flexible. The latter requires more complex infrastructure.

AWS CloudFront (the CDN service in AWS) comes with a global free tier of 1TB of traffic, meaning the costs for an early-stage marketplace are close to $0. 

However, building and maintaining image handling and processing in the marketplace app does require quite a bit of engineering work. That’s why my recommendation is to use a third-party service for image delivery, like Imgix, which is what Sharetribe uses as well. Such services have access to the original images in your object store and automatically process and deliver resized and optimized variants through their own infrastructure and CDNs.

This is the canonical "build vs. buy" decision. Buying lets you launch faster, but Imgix’s usage-based pricing can end up costing more in the long term than building an in-house pipeline once your volume grows. Imgix’s current plans start at $25/month. The ultimate choice depends on your engineering resources, budget, and future plans. Using a third-party service is a very sensible and safe choice especially if you're not backed by a team of experienced engineers. It can keep the costs reasonable for quite some time while usage grows.

Either way, the early-stage infrastructure cost will be small. 

ServiceCost/month (minimum)Cost/month (recommended)
AWS CloudFront0-
Imgix-$25
Total0$25

Email notifications

A marketplace application typically needs to send email notifications about what happens between users: booking requests, orders, payment receipts, review requests, and so on. In addition, most online apps need to send emails to facilitate user registration and authentication. 

The best way to send email so that it has a good chance to actually reach the recipient is to use a managed service. In AWS, that would be Simple Email Service (SES), or third-party services like SendGrid or Mailgun. Starting with SES would cost as little as ~$1/month early on.

ServiceCost/month
Simple Email Service (SES)$1

Miscellaneous

Finally, here are a handful of smaller AWS services to round the setup:

  • Route53 for DNS so your marketplace's domain name actually points to your servers and cloud infrastructure
  • Secrets Manager to store and manage confidential configuration values (credentials, etc.)
  • Elastic Container Registry to store and manage Docker images for deployment on Fargate
  • AWS Key Management Service (KMS) for managing encryption keys that other services (like S3 and RDS) can make use of

They will amount to approximately $10–15/month at the start and aren’t likely to become substantial costs down the line either.

ServiceCost/month (minimum)Cost/month (recommended)
Route53, Secrets Manager, Elastic Container Registry, AWS Key Management Service (KMS)$10–15$10–15

Summary of the production environment costs

The table below summarizes the monthly costs of the minimum and optimal setup I recommend in AWS.

ServiceCost/month (minimum)Cost/month (recommended)
Compute$43.25$43.25
Database of record$108.61$108.61
Load balancing and networking$45$62
Logging and monitoring$10$10
Object storage00
In-memory caching$40$40
Indexing data for search0$180
Content delivery0$25
Email notifications$1$1
Miscellaneous$10$10
Total$257.86$479.86

Comparison with Render

First, a disclaimer: I don't have personal experience with running a production-grade application on Render and especially managing databases there. My evaluation below is based on a review of Render's pricing and documentation in summer 2026.

Render's appeal is that it handles your application's compute (web servers, workers) without you having to set up and manage the underlying AWS infrastructure. In Render, an equivalent initial setup would start slightly cheaper: ~$210/month (without Elasticsearch). However, I would still recommend running the main database on AWS, even with compute on Render. I estimate the minimal hybrid setup at ~$245/month.

AWS RDS offers greater flexibility and a feature set for running a managed PostgreSQL database (in the form of tuning parameters, extension support, longer point-in-time-recovery window, scalability and read-replica options, near-zero downtime upgrades), which often bring long-term advantages like less worrying about maintenance. Given that the primary database is the single most important component of a marketplace application, you’ll likely want more flexibility there despite the higher cost and complexity: keeping Render for compute and using AWS RDS for the database is a reasonable tradeoff.

Of course, you can start with a database on Render and migrate elsewhere later. Keep in mind, though, later on, when your marketplace has constant usage, the business impact of downtime will be greater than when you had no live users to lose. 

Render doesn't have an Elasticsearch offering, so adding that means a hybrid setup either way. I estimate the recommended infra in hybrid setup between Render and AWS at ~$440/month.

ApproachWithout ElasticsearchWith Elasticsearch
Custom AWS setup$257.86$479.86
Render + AWS database (hybrid)~$245~$440

Comparison with Sharetribe

There are two ways you can run a Sharetribe-powered marketplace, and Sharetribe's infrastructure takes care of everything listed above, no matter which path you choose. The right choice for you depends on the exact functionality your marketplace needs and your business stage. Since this section focuses on an initial setup before users come in, we’ll only look at those baseline costs—the next section will dive into usage costs.

On Sharetribe's no-code version, there are no additional costs beyond Sharetribe's live subscription fee, $259/month with monthly billing. 

If you’ve customized Sharetribe Web Template with code or built your own client application on top of Sharetribe's APIs, you need to run your custom code on your own server. Render's $25/month instance (+ compute of $14/month) is enough to cover what you need for your live marketplace, because you're only hosting a lightweight client application. Sharetribe takes care of your database, search index, etc. Sharetribe Web Template uses a single-page architecture where, in most cases, only the initial page load hits your own instance, and Sharetribe's hosted infrastructure takes care of the rest. You need another Render instance for development and testing purposes, but Render's free Hobby plan is enough for that.

Since you benefit from but are not limited by the Sharetribe Web Template when customizing your marketplace, you could potentially add features that need their own,  additional custom infrastructure, such as a custom database or search indexes. However, in most cases, these kinds of additions are not necessary, even at a large scale. Some of our customers have them, some don’t.

To summarize: if you use Sharetribe, you'll be able to go live with an infrastructure worth nearly $500/month, but only pay $259–298 per month for it (depending on whether you’re self-hosting your frontend application or not). 

ApproachLower-cost optionHigher-cost option
Custom AWS setup$257.86 (minimum)$479.86 (recommended)
Render + AWS database (hybrid)~$245 (minimim)~$440 (recommended)
Sharetribe$259 (no-code)$298 (custom)

So far so good. However, this is just the cost of the production environment on day 0, without any users, listings, or transactions. Next, we discuss what happens when you invite your users in.

Usage costs

Once people actually start using your custom-built marketplace, your costs can rise quickly. Most of the services listed earlier have usage-based pricing: the more usage you have, the more you’ll pay. Things like object storage and email notifications start at $0 and only generate costs when used. 

The remaining costs (compute, database, search, and CDN) are harder to estimate precisely. We already see significant differences in usage costs for different Sharetribe customers, because they vary so much based on the marketplace idea, usage patterns, and architectural choices.

We can still make rough estimations, with the help of real-world examples.

A Sharetribe customer, a large rental marketplace, has nearly 500k users and processes over 10k transactions a month. In June 2026, they used roughly 200M usage credits. 

For a marketplace of this size, it’s reasonable to assume they’re taking advantage of yearly discounts: an annual subscription plan with Sharetribe is $199/month, and a yearly credit commitment is $999/month ($0.005 per 1,000 credits). So, this platform’s usage costs are approximately $1,198/month.

Let’s compare that to usage on an equivalent custom setup.

Let’s start with Imgix, which also has a credit system. From our Imgix logs, we can see that this customer used approximately 3,200 Imgix credits. This means that if they weren’t a Sharetribe customer, they would likely be in Imgix's Growth Plus plan, priced at $5,000/year or $416,67/month. 

For the remaining costs, an exact evaluation is trickier. Estimating based on this marketplace’s usage data, I believe they would most likely fall somewhere between $900/month and $1,800/month. So, with Imgix costs included, I estimate this marketplace would pay $1,316–2,216/month for usage if on a custom setup.

For a marketplace at this scale, the usage costs of custom-built infrastructure would be roughly similar or higher than the usage costs of a Sharetribe-powered platform.

Cost itemSharetribeCustom setup
Subscription fee$199/month
Usage credits (200M credits, $0.005 per 1,000)$999/month
Image delivery (Imgix)Included$416.67/month
Remaining usage costs (compute, database, search, CDN)Included$900–$1,800/month
Total$1,198/month$1,316–$2,216/month

However, this is just the cost of the infrastructure. There’s one more critical piece: personnel costs. I'll tackle that next.

Personnel costs

When you run a marketplace with a lot of user activity, all kinds of things can go wrong with your infrastructure. Perhaps you didn’t reserve enough memory or database capacity and it runs out, and your system stops working. Perhaps there’s a bug in your code and one user’s action causes your server to grind to a halt, impacting everyone’s experience. Perhaps a malicious third party is hitting your marketplace with a DDoS attack. Or you (or your AI agent) accidentally deletes user data and you need to recover it. 

In these kinds of cases, you need to have people who 

  • Understand your infrastructure 
  • Are available on short notice (as your marketplace might currently be unusable, losing money every minute)
  • Have the skills to diagnose the problem and solve it.

A small startup with a technical co-founder can handle this if that co-founder carries their laptop wherever they go and is prepared to tackle issues, no matter when they hit. Unless you have such a person working for sweat equity, though, you need to pay someone to do it. Your options are hiring someone as a part of your team or engaging a DevOps-as-a-Service provider.

It’s tough to estimate exact numbers here, but the monthly costs are most likely four to five figures. According to Indeed in September 2026, the average yearly salary for an in-house US-based DevOps Engineer is $133k, averaging at about $11k per month in addition to other employment costs like benefits and insurance. Other countries will have different salary brackets and running costs. You also need to account for the fact that one employee can’t be expected to be available 24/7.

DevOps-as-a-Service can range between $3,000–30,000 per month, depending on geography, the services included, and how fast you need someone to respond if something breaks. Exact numbers are, again, hard to find, since most providers offer custom quotes only. I did still find three different providers with public pricing ranges to give you an idea of what to expect:

  • Palark (Germany): €3,200/month with business-hours on-call, up to €14,300/month with 24/7 coverage. (Note: prices in euros)
  • SquareOps (India): $3,000–5,000/month without on-call, $10,000–25,000/month with 24/7 SRE coverage.
  • Opsio (Sweden & India): $3,500–9,000/month for business-hours support, $9,000–30,000/month with a 24/7 SLA. (Note: Opsio is an Azure DevOps provider, not AWS)

As you can see, the main cost driver is 24/7 on-call support. If you're willing to let go of that, you can survive with a lower cost. However, it comes with risking your marketplace being down for several hours, if not days.

If your marketplace is powered by Sharetribe, this issue largely goes away. Sharetribe's fees include full maintenance for our hosted infrastructure. If Sharetribe's APIs ever come down, I or one of my colleagues will immediately get alerted and start fixing the issue, even if the alert comes on New Year's Eve. And this is a very rare occurrence anyway—after 10+ years of iteration and improvement, our infrastructure is extremely stable.

Even if you've customized your Sharetribe-powered marketplace with code, you only need to maintain your client application running in Render. As it doesn't have its own database, search index, or other such resource-heavy components, the likelihood of crashing is small. If such a crash does happen, it’s usually  straightforward to get back up, and a non-technical founder, with assistance from AI, can likely fix it themselves.

Why Sharetribe is cheaper than custom infrastructure

In this article, I've demonstrated that even before personnel costs, the cost of running a marketplace in its early days with custom infrastructure is clearly more expensive than running a Sharetribe-powered marketplace. At scale, the cost of custom infrastructure is roughly similar to or higher than what Sharetribe costs. When you factor in personnel, Sharetribe is cheaper by a significant margin

Sharetribe is a for-profit company. When you use our services, we add our profit margin on top of our fixed infrastructure costs. How, then, is it possible that it's still cheaper to run your marketplace on Sharetribe's infrastructure than on a custom one?

The reason boils down to five things:

  1. Multi-tenant approach
  2. Optimized infrastructure
  3. Economies of scale 
  4. Low overhead due to a self-serve model
  5. Non-extractive business model

Multi-tenant approach

Sharetribe has one production environment to power all the marketplaces of our 1,500+ customers. This is the most important thing driving down the cost of using Sharetribe. Instead of paying for the minimum production environment setup 1,500 times, we only pay it once. Whenever we update the Sharetribe Core codebase, the changes become available to all our customers instantly.

It also drives down personnel costs. With quick napkin math, Sharetribe’s in-house personnel costs for infrastructure maintenance are approximately $10k-$15k/month but, again, split across 1,500+ customers instead of one.

Optimized infrastructure

When you custom-develop a marketplace, the first version is likely not optimized to scale. At least, it maybe shouldn't be: those optimizations are usually prohibitively expensive for a startup that hasn’t validated product-market fit yet. Its energy and resources are better spent on reaching sustainability.

This was the case for Sharetribe too when we started our business 15 years ago. For the first five years, we ran on a fragile infrastructure that barely held together but did its job and helped us get our initial customers and revenue. Our current infrastructure, which we transitioned to nearly 10 years ago and have been improving continuously over time, was built at a time after we’d reached product-market fit. Even this infrastructure had all kinds of issues in the early days that we've addressed since.

Today, millions of people all around the world use our customers' marketplaces. This extremely robust infrastructure is necessary to serve an end-user base of that scale. It has taken us a long time to get here, but now every marketplace powered by Sharetribe is reaping the benefits of the work done throughout the past decade and more.

Economies of scale

Our scale also brings another benefit to our customers. Every infrastructure provider (including us) benefits from economies of scale. This means that at a bigger scale, the cost of producing one unit of value is lower.

We use a variety of cloud services to power our infrastructure, and due to our large scale, we receive lower per-unit fees from them. We then funnel these savings to our customers. This is also why we can offer volume discounts for Sharetribe usage credits too.

In addition, due to the multi-tenant approach and our scale, we’re able to keep sufficient reserve capacity at all times. Each marketplace running on Sharetribe benefits from this, as we can accommodate expected or unexpected usage spikes. A marketplace on custom infrastructure might need to spend a significant amount of money for equivalent extra capacity.

Low overhead due to a self-serve model

At Sharetribe, we've always focused on helping founders, and the vast majority of our customers today are microenterprises of 1-10 people. To be able to serve this customer segment well, we’ve needed to find an approach where there's as little overhead as possible.

One concrete consequence of this is our self-serve model. We have many customers who never interacted with our team: instead, they discovered us through Google or AI, created a free trial to build their platform, built it with the help of our extensive documentation, and subscribed to a paid plan when it was time to take it live. 

We still don't have a sales team today. This means our customer acquisition costs are low, which lets us keep prices lower.

Non-extractive business model

An economist reading this article might observe that we're leaving money on the table. If our service is so much cheaper than alternatives, why aren't we charging more? That would allow us to have a larger profit margin, and return more money to shareholders.

That's a valid question. The answer is that we operate with a different kind of business model. We're not in business to maximize profits: instead, our goal is to maximize our impact. Sharetribe exists to democratize platform ownership by making it possible for anyone to build and run a successful marketplace business. Our steward-ownership structure is written into our company charter: we can only provide capped returns to our shareholders, and beyond this, all our profits must go solely toward pursuing our mission. 

This guarantees that nobody in our company is incentivized to squeeze more from our customers, and we face no pressure from outside shareholders to do so. Our company charter also prevents Sharetribe from being sold, ensuring it will always remain controlled by its team and directed by its mission.

We believe that the best way to pursue our mission is to keep our pricing as low as we possibly can. This is why our pricing has increased very little over the years, as documented transparently on our pricing changelog. Our goal is to make just enough revenue to make sure we can invest in improving our offering, and no more.

Custom infrastructureSharetribe
Multi-tenancyOne infrastructure, one businessOne infrastructure, 1,500+ businesses
Infrastructure maturityBuilt and learned as you scale15+ years of iteration already done
Economies of scaleStandard per-unit cloud pricingVolume discounts passed on to you
OverheadYou carry sales, support and opsSelf-serve model, no sales team
Business modelVendors maximize profit marginCapped returns, profit reinvested

One day, we envision a world where the starting price of Sharetribe is $0. That's when we've truly reached our goal. We're not there yet—so far the unit economics don't add up—but that's what we're working towards.