Why Makers Are Leaving WordPress Marketplaces — And What’s Next

Software selling has changed, and WordPress marketplaces must adapt or risk becoming obsolete.

Sales platforms have made it easier than ever for makers to sell their products independently, undercutting the early dominance marketplaces held in billing and transaction management. Today, sellers have full control over their growth, making marketplace listings feel restrictive and less lucrative.

To keep software makers, marketplaces must modernize and offer a fair platform that protects their revenue and doesn’t cut into profits with outdated practices.

With more than a decade of experience helping software makers go independent, Freemius founder and CEO Vova Feldman shares forward-looking insights on the future of these once all-powerful sales platforms.

Before exploring the key factors shaping the future, let’s examine the origins of WordPress marketplaces and their pros and cons.

The Evolution of WordPress Marketplaces

Selling WordPress products was uncommon until 2008, when paid themes gained traction. Seizing the opportunity, Australian company Envato launched ThemeForest and CodeCanyon, which soon became leading marketplaces for premium WordPress plugins and themes.

Since then, new marketplaces have emerged, offering benefits like:

• High traffic and visibility – Marketplaces attract large audiences and rank well on search engines
• Built-in customer bases – Sellers gain access to an established buyer network
• Trust and credibility – Buyers feel more secure purchasing through well-known platforms
• Market insights and community – Sellers can connect, learn trends, and refine their offerings

To explore the leading WordPress marketplaces of today, check out our detailed breakdowns for WooCommerce, TemplateMonster, Creative Market, and AppSumo.

Despite early success, many WordPress marketplaces face growing challenges, leaving sellers increasingly dissatisfied.

Frustrations with WordPress Marketplaces in 2025

In May 2024, Shutterstock’s acquisition of Envato shook the WordPress community. The official press release omitted any mention of ThemeForest and CodeCanyon, sparking uncertainty among sellers.

“From what I’ve learned through the grapevine, top sellers are looking for alternatives and plan B’s. They’re not blind and I think they’ll move away from Envato eventually, or maybe sell in parallel,” Vova believes.

Learn more about this in our article Why WordPress Product Makers Are Aggressively Exploring Envato Alternatives. Also, check out our webinar “Is This the Death of CodeCanyon and ThemeForest?” for an expert panel discussion that explores the granular details of the topic:

The challenges aren’t limited to Envato — many WordPress sellers are frustrated with outdated models, spotlighting longstanding concerns with marketplaces in general:

For a deeper dive into the above frustrations, read Are WordPress Marketplaces Still Worth It in 2024?

WordPress marketplaces risk losing relevance (and sellers) without modern strategies. What must the ‘marketplaces of the future’ look like, and what trends will shape them?

Moving Forward: Where Are WordPress Marketplaces Headed?

“ThemeForest and CodeCanyon may no longer exist within the next five years,” Vova predicts. “This leaves sellers with few alternatives, such as TemplateMonster, Creative Market, and AppSumo, all of which are seeing a noticeable decline in traffic.”

I don’t think software makers can make a living from selling on marketplaces today. You need to go viral or something crazy like that, and it won’t result from any effort on the marketplace’s part. It’s not all bad news, though — it signals that the marketplace landscape is ripe for disruption and innovation.

The Rise of Niche Marketplaces

Specialized ecosystems are on the rise as sellers seek more targeted and sustainable alternatives.

“Niche marketplaces tied to expanding platforms like WooCommerce and Divi have promising futures,” Vova notes. “Divi, for example, has built a strong ecosystem around its theme builder, attracting designers and developers who rely on third-party extensions to enhance its functionality.”

“Other candidates for niche marketplaces include Elementor, which is used by over 15 million websites. It also has an extensive third-party ecosystem and promotes products by featuring add-ons.”

Hosting Companies: The Next Big Players?

“Amid the ongoing conflict between WP Engine and Matt Mullenweg — and with the growing uncertainty surrounding WordPress marketplaces — hosting companies like WP Engine could step in to create their own curated alternatives,” Vova says. “By leveraging existing customer bases and infrastructure, they could reduce reliance on the broader WordPress ecosystem.

“That said, hosting is a low-margin, support-heavy business,” he continues. “To minimize risks, these marketplaces would likely prioritize quality over quantity, favoring a curated selection of products instead of open submissions. This approach would ensure stability while reducing potential support burdens.”

Hybrid Marketplaces: Balancing Exposure

“Marketplaces need to bridge the gap between independent selling and platform-driven traffic,” Vova explains. “Hybrid models could offer a solution by granting sellers more control while still providing the benefits of a centralized sales platform.”

These models could allow flexible branding, enabling makers to maintain their unique identities while leveraging the marketplace’s reach and resources.

As traditional marketplaces lose appeal, sellers seek more autonomy while still benefiting from marketplace traffic. Hybrid models, like Etsy, illustrate this shift — sellers can create branded storefronts, set their own prices, and manage fulfillment, yet they still rely on Etsy’s massive audience for sales.

However, this approach isn’t without risks. “It’s a tricky balance,” Vova explains, “because if marketplaces give sellers too much independence, they may use the platform only as a traffic source, ultimately driving buyers to their own direct sales channels.”

This raises a key question: can marketplaces remain profitable while offering sellers more freedom, or will they lose relevance in the process?

Confidence and Convenience for Buyers

“Consumers prioritize trust and simplicity when making purchases,” Vova says. “Future marketplaces must nurture buyer confidence through policies like no-questions-asked refunds and lowest-price guarantees.”

Trust is critical in software sales, where buyers worry about compatibility, ongoing support, and refund policies. Well-known marketplaces like Amazon, Apple’s App Store, and Google Play address these concerns with transparent refund policies and user reviews, allowing customers to purchase with confidence. Similarly, Freemius acts as a merchant of record, ensuring buyers receive purchase protection, simplified billing, and seamless transactions.

Beyond trust, convenience plays a major role in driving sales. “Streamlining the checkout experience — especially for repeat customers — can significantly boost conversions,” Vova notes. Yet many software marketplaces still require users to manually enter payment details for each transaction, creating unnecessary friction. “One-click payments and storing billing details make transactions faster and reduce drop-off rates.

“Seamless authentication and subscription-friendly payment models are also key opportunities for improvement,” Vova adds.

Market Saturation and the Decline of Inventory

Vova shares a hard truth: “Without marketing, newcomers with side projects struggle to gain traction in established marketplaces.”

In the past, marketplaces provided an easy entry point — sellers could list their products and generate sales with minimal effort. But today, traffic and revenue are increasingly concentrated among a handful of top-selling products, making it harder for new and smaller developers to compete. As low-performing products fade out and fewer sellers enter the space, marketplace inventory is shrinking, reinforcing a cycle where the most successful players continue to dominate.

“Reduced competition may drive up prices, particularly for plugins, as supply tightens,” Vova notes. With fewer alternatives available, buyers may have to pay a premium for well-maintained, high-quality plugins. However, he points out that themes are unlikely to see similar price increases, as the rise of powerful page builders like Elementor and Divi has reduced the need for traditional themes.

“Today’s software creators must be more business-savvy than ever,” Vova emphasizes. “Gone are the days when you could simply upload a product and expect sales. To succeed, developers need a strong marketing strategy, a clear unique value proposition, and a long-term growth plan.”

Shift from Exclusivity to Incentives

“Historically, many marketplaces penalized sellers for listing products elsewhere, but exclusivity models are becoming obsolete,” Vova asserts. “To stay competitive, future marketplaces must shift from restrictions to rewards and offer lower commission rates, enhanced visibility, or other incentives to keep sellers engaged.”

“Using carrots instead of sticks is the way forward,” Vova adds, emphasizing that collaborative partnerships will be far more effective than rigid restrictions in retaining sellers.

Opportunities for Innovation

While the future of existing marketplaces may appear bleak, Vova remains optimistic about disruption. “A marketplace with a unique angle could still capture market share,” he says.

For example:

• Performance-based ranking system for plugins and themes: Rather than favoring bestsellers, rankings would be based on real-world performance metrics like speed, security, and compatibility. This system ensures high-quality products from newer sellers aren’t buried beneath older listings with more sales history.
• AI-powered customization and compatibility checks: An AI-driven tool analyzes a user’s website — its plugins, theme, hosting environment, and usage patterns — to recommend the most compatible themes and plugins. It prevents issues like plugin conflicts or performance problems by flagging potential incompatibilities before they arise. The tool levels the playing field by ensuring seamless integration and optimized performance, giving high-quality, well-optimized products from newer or smaller developers equal visibility.

However, for a new marketplace to innovate and succeed, Vova points out that two critical problems need to be addressed: driving traffic and ensuring sustainable unit economics that maintains financial equity for all parties. “The technological aspect of running marketplaces isn’t the hard part — it’s driving traffic and balancing costs,” he emphasizes.

The Next Chapter for WordPress Marketplaces

Equitable financial models, stronger marketing investments, and carefully curated inventories are no longer optional but essential for retaining sellers and ensuring sustainable growth.

As we reach mid-2025, one thing is clear: the future belongs to those who adapt. WordPress marketplaces that embrace innovation, explore niche ecosystems, and leverage hybrid sales models will lead the next wave of success, while those clinging to outdated practices risk becoming irrelevant.

For makers dissatisfied with current WordPress marketplaces, selling products independently offers a more rewarding path. To learn how a merchant of record like Freemius can simplify your journey and boost your success, contact us at [email protected].