Design E-commerce Marketplace

Online marketplace inspired by large retailers' published patterns: CDN-cached catalog, faceted search, durable carts, conditional inventory reservations, idempotent orders, and a payment saga driven by a transactional outbox. A teaching design.

Functional requirements

  • Multi-vendor catalog with categories, filters, and availability.
  • Full-text and faceted search, autocomplete suggestions.
  • Cart management, promo codes, taxes, and shipping fee calculation.
  • Secure checkout with idempotent order creation and payment capture.
  • Accurate inventory reservation and decrement to prevent overselling.
  • Order lifecycle: placed → paid → packed → shipped → delivered; cancellations/refunds.
  • Seller portal for product updates, pricing, and order fulfillment acknowledgments.
  • Notifications (email/SMS/push) for order updates and receipts.
  • Media hosting for product images/video with CDN distribution.
  • Recommendations: related items, frequently bought together, personalized feed.

Non-functional requirements

  • Availability: 99.95%+; single AZ failure must not halt orders.
  • Performance: cache-warm PDP/PLP < 120 ms p99; checkout confirmation < 2 s p99.
  • Scalability: independently scale catalog, search, checkout, and payment services.
  • Durability: orders and payments persisted with transactional guarantees; audit logs retained.
  • Consistency: strong for orders/payments/inventory; eventual for search and recs (< 30 s).
  • Security: isolate PCI scope to payments; TLS 1.2+; PII encrypted at rest (AES-256).
  • Resilience: timeouts, circuit breakers, bulkheads; retries with backoff and DLQs.
  • Observability: traces/logs/metrics for API, queue depth, index lag, and payment latency.
  • Cost: CDN offload > 90%; storage tiering for cold media and logs.

How the design evolves

Stage 1: Single Server: Read Stock, Then Write the Order

See how a sale overwhelms one server and oversells stock.

What was missing: Nothing yet.

Why that's risky: Two shoppers can both read the last unit as available and both order it, and a sale's traffic swamps one server and database.

What gets added: One server rendering pages and placing orders by reading stock and then writing the order.

Trade-offs: Simple, but correctness depends on timing.

Stage 2: Catalog on a CDN and Cache, Checkout in One Transaction

Take browsing off the database and make checkout unable to oversell.

What was missing: Browsing hit the database and checkout could oversell.

Why that's risky: Shoppers can't search, carts don't survive across devices, and orders and stock share one database.

What gets added: A CDN for images and cacheable pages, a catalog service with a product cache and its own database, and a checkout that decrements stock and creates the order in one transaction.

Trade-offs: Cached prices can lag a change for a moment; checkout always uses the database's current stock.

Stage 3: Search and Carts

Let shoppers find products and keep carts across devices.

What was missing: No search and no durable carts.

Why that's risky: During a sale, checkout transactions on one database become the bottleneck, and a retried checkout can create two orders.

What gets added: A faceted search service and index kept current by a catalog indexer, and a cart service with a key-value cart store that survives across devices.

Trade-offs: Search lags catalog changes by seconds.

Stage 4: Inventory Reservations and Idempotent Orders

Scale stock and orders independently and make retries safe.

What was missing: Stock and orders shared one database, and retries could duplicate orders.

Why that's risky: Payment happens inside checkout, so a slow payment provider blocks the shopper and a crash mid-way leaves stock reserved with no order.

What gets added: An inventory service that reserves stock per SKU and warehouse with a conditional decrement, and an orders database where each order carries an idempotency key, so a retried checkout returns the same order.

Trade-offs: Reserved stock is unavailable to others until the order is paid or the reservation expires.

Stage 5: Payment Saga with an Outbox

Charge, fulfill and notify reliably without a distributed transaction.

What was missing: Payment, fulfillment and notifications ran inside the checkout request.

Why that's risky: Bots can still swamp a sale, recommendations are missing, and the funnel isn't monitored.

What gets added: Checkout writes the order and an outbox event in one transaction; the event is published to an order stream, where a payment worker charges with the idempotency key (cancelling and releasing stock on failure), a fulfillment worker ships, and a notification worker emails.

Trade-offs: The order is confirmed a moment after checkout, once payment succeeds, instead of inside one request.

Stage 6: Recommendations, Bot Protection and Monitoring

Help shoppers discover products, keep bots out, and watch the funnel.

What was missing: No recommendations, no bot protection, no funnel monitoring.

Why that's risky: Remaining risk is regional and seasonal: sale days need capacity planned in advance.

What gets added: A recommendations service serving precomputed related-product lists, a bot shield, and monitoring of checkout success, payment failures, oversell checks and search latency.

Trade-offs: Precomputed recommendations update nightly rather than per click.

Frequently asked questions

How do you prevent overselling during flash sales?

Use inventory reservations (short TTL holds) at checkout. Decrement atomically within a transaction on order confirmation. Release holds on timeout/cancel. Consider per-SKU counters with row locks or conditional updates.

How do you ensure idempotent checkout and payment capture?

Require a client-supplied idempotency key for checkout. Persist the key with the final outcome. Use the outbox pattern to publish order events reliably. Make payment capture idempotent via unique transaction keys.

How do you design search for relevance and freshness?

Maintain a dedicated search index (inverted) updated asynchronously from catalog changes and order signals. Support facets/filters and ranking by popularity/recency. Keep an indexing worker that consumes catalog events.

How do you handle promo codes at scale without race conditions?

Represent promo budget/usage with atomic counters guarded by conditional updates. Cache promo definitions; validate at checkout with a read‑through cache and fallback to DB on misses.

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