Technical Requirements Document Template for Marketplaces

"Build me a marketplace like Uber but for dog walkers."

That's not a requirement. That's a vague idea that will cost you $50K in wasted development and 6 months of miscommunication.

We've written technical requirements for 200+ marketplaces. We've seen every way requirements can go wrong:

• •Developers build the wrong features
• •Features work differently than expected
• •Budget explodes because scope was unclear
• •Timeline doubles because requirements kept changing

This guide gives you the exact template we use to write clear, complete technical requirements that developers can actually build from.

Why Technical Requirements Matter

The Cost of Bad Requirements

What happens when requirements are vague:

Project A - Vague Requirements:

• •Founder: "We need a booking system"
• •Developer builds: Calendar with time slots
• •Founder wanted: Instant booking with provider approval
• •Cost: 4 weeks wasted + $8,000 + relationship damage

Project B - Clear Requirements:

• •Founder: "When customer selects date/time, provider receives notification and has 24 hours to approve/decline. If approved, customer is charged. If declined, customer is notified and can select another provider."
• •Developer builds: Exactly that
• •Cost: 2 weeks + $4,000 + happy relationship

The difference? Specificity.

What Good Requirements Achieve

Clear requirements:

• •Give you accurate time estimates
• •Prevent scope creep
• •Enable fixed-price contracts
• •Reduce back-and-forth
• •Ensure you get what you actually need
• •Let you compare developer quotes apples-to-apples

We can estimate a project within 10% when requirements are clear. Within 50% when they're vague.

The Technical Requirements Template

Here's the structure we use for every marketplace PRD:

1. Project Overview

What to include:

PROJECT NAME: [Your marketplace name]
VERSION: 1.0 (MVP)
DATE: [Date]
AUTHOR: [Your name]
STAKEHOLDERS: [Who needs to approve this]

PROJECT SUMMARY:
[2-3 paragraphs describing what this marketplace does, who it serves, and why it exists]

SUCCESS METRICS:
- [Metric 1: e.g., 100 active providers in 6 months]
- [Metric 2: e.g., 500 completed transactions in first year]
- [Metric 3: e.g., 4.5+ star average rating]

Example:

PROJECT NAME: PetPro Marketplace
VERSION: 1.0 (MVP)
DATE: January 15, 2025
AUTHOR: Sarah Johnson
STAKEHOLDERS: Sarah Johnson (CEO), Mike Chen (CTO)

PROJECT SUMMARY:
PetPro is a two-sided marketplace connecting certified pet care professionals (dog walkers, pet sitters, groomers) with pet owners in major US cities. Pet owners can search for providers, view profiles and reviews, book services, and pay through the platform. Providers can manage their availability, communicate with clients, and receive payments minus a 20% platform fee.

The marketplace focuses on trust and safety, requiring all providers to complete background checks and pet care certification before approval.

SUCCESS METRICS:
- 200 active providers across 5 cities in first 6 months
- 1,000 completed bookings in first year
- 4.5+ star average provider rating
- 60%+ repeat customer rate

2. User Roles & Permissions

Define every type of user:

ROLE: [Role name]
DESCRIPTION: [Who this is]
PERMISSIONS:
- Can [action 1]
- Can [action 2]
- Cannot [action 3]

Example:

ROLE: Pet Owner (Customer)
DESCRIPTION: Pet owners looking to book services
PERMISSIONS:
- Can create account and profile
- Can search and browse providers
- Can book and pay for services
- Can message providers
- Can leave reviews after service completion
- Cannot create provider listings
- Cannot view other customers' booking history

ROLE: Pet Care Provider
DESCRIPTION: Certified professionals offering pet care services
PERMISSIONS:
- Can create account and service listings
- Can set availability and pricing
- Can accept/decline booking requests
- Can message customers
- Can view earnings and analytics
- Cannot access other providers' information
- Cannot modify customer reviews

ROLE: Platform Admin
DESCRIPTION: PetPro staff managing the platform
PERMISSIONS:
- Can view all users, bookings, and transactions
- Can approve/reject provider applications
- Can suspend users for policy violations
- Can issue refunds
- Can view all analytics and reports
- Can modify platform content and settings

3. Core Features & User Stories

For each major feature, write user stories:

FEATURE: [Feature name]

USER STORY:
As a [user role]
I want to [action]
So that [benefit/outcome]

ACCEPTANCE CRITERIA:
- Given [context]
- When [action]
- Then [expected result]

TECHNICAL NOTES:
[Any specific technical requirements or constraints]

Example 1: Provider Registration

FEATURE: Provider Registration & Verification

USER STORY 1:
As a pet care provider
I want to create an account and profile
So that I can offer my services on the platform

ACCEPTANCE CRITERIA:
- Given I'm on the provider signup page
- When I enter email, password, full name, phone number, and service type
- Then my account is created and I'm directed to complete my profile

- Given I've created an account
- When I complete my profile with bio, experience, service area, pricing, and upload certifications
- Then my application is submitted for admin review

- Given my profile is submitted
- When I upload required documents (ID, insurance, certifications)
- Then I receive confirmation email that application is under review

TECHNICAL NOTES:
- Email verification required before profile completion
- Document uploads: PDF or JPG, max 5MB each
- Background check integration with Checkr API
- Manual admin approval required (no auto-approval)

Example 2: Service Booking

FEATURE: Service Booking Flow

USER STORY 1:
As a pet owner
I want to book a service with a specific provider
So that I can schedule pet care

ACCEPTANCE CRITERIA:
- Given I'm viewing a provider's profile
- When I click "Book Service"
- Then I see a booking form with service selection, date, time, pet details, and special instructions

- Given I've filled out the booking form
- When I click "Request Booking"
- Then I'm prompted to enter payment information

- Given I've entered valid payment information
- When I confirm the booking
- Then:
  * Payment is authorized but not charged
  * Provider receives booking notification
  * I see confirmation screen
  * I receive email confirmation

- Given I've submitted a booking request
- When provider accepts within 24 hours
- Then:
  * Payment is processed
  * Both parties receive confirmation
  * Booking appears in my upcoming appointments

- Given I've submitted a booking request
- When provider declines or doesn't respond in 24 hours
- Then:
  * Payment authorization is released
  * I receive notification
  * I'm offered alternative providers

TECHNICAL NOTES:
- Use Stripe payment intents for authorization
- Automatic timeout after 24 hours (cron job)
- Email notifications via SendGrid
- SMS notifications optional (Twilio integration)

4. Data Models & Relationships

Define your key database entities:

ENTITY: [Name]
DESCRIPTION: [What this represents]

FIELDS:
- field_name (data_type): Description
  - Validation rules
  - Default value
  - Required/Optional

RELATIONSHIPS:
- [Relationship to other entities]

Example:

ENTITY: Provider
DESCRIPTION: Pet care professional offering services

FIELDS:
- id (UUID): Unique identifier
  - Auto-generated
  - Required

- user_id (UUID): Reference to User account
  - Foreign key to Users table
  - Required

- business_name (string, max 100 chars): Display name
  - Required
  - Must be unique

- bio (text, max 500 words): Provider description
  - Required

- service_types (array): Types of services offered
  - Options: dog_walking, pet_sitting, grooming, training
  - At least one required

- service_area (array): ZIP codes served
  - Array of valid US ZIP codes
  - At least one required

- pricing (JSON): Pricing structure
  - Format: {service_type: {base_price: number, hourly_rate: number}}
  - Required for each service_type

- certifications (array): Uploaded cert documents
  - File URLs
  - At least one required

- background_check_status (enum): Verification status
  - Options: pending, approved, rejected
  - Default: pending

- rating (decimal): Average rating
  - Calculated field (avg of all reviews)
  - Scale: 0-5, one decimal place

- total_reviews (integer): Count of reviews
  - Calculated field
  - Default: 0

RELATIONSHIPS:
- One Provider has many Services
- One Provider has many Bookings
- One Provider has many Reviews
- Provider belongs to one User

5. Technical Architecture

Define your tech stack and key integrations:

PLATFORM ARCHITECTURE:

FRONTEND:
- Framework: [Next.js 14, React, etc.]
- Styling: [Tailwind CSS, etc.]
- State Management: [Context API, Redux, etc.]

BACKEND:
- Framework: [Node.js + Express, etc.]
- Database: [PostgreSQL, MySQL, etc.]
- Authentication: [NextAuth, Firebase Auth, etc.]

HOSTING & INFRASTRUCTURE:
- Hosting: [Vercel, AWS, etc.]
- Database Hosting: [Supabase, AWS RDS, etc.]
- File Storage: [S3, Cloudinary, etc.]

THIRD-PARTY INTEGRATIONS:
- Payment Processing: [Stripe Connect]
- Email: [SendGrid, Resend]
- SMS (optional): [Twilio]
- Background Checks: [Checkr]
- Maps: [Google Maps API]
- Analytics: [Google Analytics 4]

6. User Flows & Wireframes

Map out critical user journeys:

USER FLOW: [Name of flow]
ACTORS: [Who is involved]

STEPS:
1. [Starting point]
2. [Action]
3. [System response]
4. [Next action]
...
n. [End state]

ALTERNATE PATHS:
- If [condition]: [what happens]
- If [error]: [error handling]

Example:

USER FLOW: First-Time Booking
ACTORS: Pet Owner (new user)

HAPPY PATH:
1. User arrives on homepage
2. Enters location and service type in search
3. Views list of available providers
4. Clicks on provider profile
5. Reviews profile, services, ratings
6. Clicks "Book Service"
7. Prompted to create account or continue as guest
8. Chooses to create account
9. Completes registration form
10. Redirected back to booking flow
11. Selects service, date, time
12. Enters pet details
13. Reviews booking summary
14. Enters payment information
15. Confirms booking
16. Sees confirmation screen
17. Receives confirmation email

ALTERNATE PATHS:
- If provider unavailable on selected date: Show alternative dates or suggest other providers
- If payment fails: Show error, allow retry with different card
- If user abandons booking: Send reminder email after 24 hours
- If user continues as guest: Still collect email for booking notifications

7. Business Logic & Rules

Document your marketplace rules:

COMMISSION STRUCTURE:
- Platform takes [X]% of each transaction
- Provider receives [Y]%
- Payment timing: [When provider is paid]

CANCELLATION POLICY:
- [Timeframe]: [Refund amount]
- No-show policy: [What happens]

PROVIDER REQUIREMENTS:
- [Requirement 1]
- [Requirement 2]

DISPUTE RESOLUTION:
- [Process for handling disputes]

Example:

COMMISSION STRUCTURE:
- Platform takes 20% of each completed booking
- Provider receives 80%
- Providers are paid weekly via ACH transfer for all completed bookings from the previous week

CANCELLATION POLICY:
- 48+ hours before service: Full refund to customer, no charge to provider
- 24-48 hours before service: 50% refund to customer, provider receives 50% payment
- Less than 24 hours: No refund, provider receives 80% payment (after commission)
- Provider cancellation: Full refund to customer, strike against provider (3 strikes = suspension)

PROVIDER REQUIREMENTS:
- Must pass background check
- Must provide proof of pet care certification or 2+ years experience
- Must maintain liability insurance ($1M minimum)
- Must maintain 4.0+ star rating (providers below 4.0 for 30+ days are suspended)
- Must respond to booking requests within 24 hours (90%+ response rate required)

DISPUTE RESOLUTION:
- Customers can file dispute within 48 hours of service completion
- Admin reviews dispute and all communications
- Admin can issue partial or full refunds
- Provider can respond to dispute
- Admin decision is final
- If provider has 3+ disputes in 90 days, account review triggered

8. Security & Compliance

Document security requirements:

SECURITY REQUIREMENTS:

DATA PROTECTION:
- [How sensitive data is handled]
- [Encryption requirements]
- [Data retention policies]

AUTHENTICATION:
- [Password requirements]
- [Session management]
- [Two-factor authentication]

PRIVACY:
- [What data is collected]
- [How it's used]
- [User privacy controls]

COMPLIANCE:
- [Relevant regulations: GDPR, CCPA, etc.]
- [Required legal pages]

Example:

SECURITY REQUIREMENTS:

DATA PROTECTION:
- All passwords hashed using bcrypt (min cost factor: 12)
- Payment information never stored (tokenized via Stripe)
- SSNs encrypted at rest (for background checks)
- Database encrypted at rest and in transit
- Personal data retention: 7 years after account deletion (regulatory requirement)

AUTHENTICATION:
- Password requirements: 8+ characters, uppercase, lowercase, number
- Sessions expire after 30 days of inactivity
- Two-factor authentication optional but recommended
- Account lockout after 5 failed login attempts (unlock after 30 minutes)

PRIVACY:
- Collect: name, email, phone, address, payment info, service history
- Use: Service delivery, platform functionality, analytics
- Never sell data to third parties
- Members can export their data
- Members can request account deletion
- Phone numbers and addresses only visible after booking confirmed

COMPLIANCE:
- GDPR compliant (EU residents can request data deletion)
- CCPA compliant (California residents can opt out of data sharing)
- PCI DSS Level 1 (via Stripe)
- Required pages: Privacy Policy, Terms of Service, Cookie Policy

9. Performance Requirements

Define performance expectations:

PERFORMANCE TARGETS:

LOAD TIME:
- Homepage: [X seconds]
- Search results: [X seconds]
- Profile pages: [X seconds]

SCALABILITY:
- Support [X] concurrent users
- Support [X] transactions per day
- Database size: Plan for [X] GB

AVAILABILITY:
- Uptime target: [99.X%]
- Acceptable downtime: [X hours per month]

Example:

PERFORMANCE TARGETS:

LOAD TIME (on 4G connection):
- Homepage: < 2 seconds
- Search results: < 1.5 seconds
- Profile pages: < 2 seconds
- Booking flow: < 1 second per step
- Core Web Vitals: LCP < 2.5s, FID < 100ms, CLS < 0.1

SCALABILITY (Year 1):
- Support 1,000 concurrent users
- Support 500 transactions per day
- Database: Plan for 100GB
- Image storage: Plan for 500GB

SCALABILITY (Year 3):
- Support 10,000 concurrent users
- Support 5,000 transactions per day
- Database: Plan for 1TB
- Image storage: Plan for 5TB

AVAILABILITY:
- Uptime target: 99.9%
- Acceptable downtime: <45 minutes per month
- Zero downtime deployments
- Automated failover for critical services

10. Testing & Acceptance Criteria

Define how features will be tested:

TESTING REQUIREMENTS:

UNIT TESTING:
- [Coverage requirements]
- [Critical paths to test]

INTEGRATION TESTING:
- [Key integrations to test]
- [API endpoints]

USER ACCEPTANCE TESTING:
- [Test scenarios]
- [Success criteria]

Example:

TESTING REQUIREMENTS:

UNIT TESTING:
- Minimum 80% code coverage
- 100% coverage for payment processing
- All user authentication flows
- All commission calculations
- All date/time logic

INTEGRATION TESTING:
- Stripe payment processing (test mode)
- Email delivery (all notification types)
- Background check API
- Google Maps API
- Webhook handling

USER ACCEPTANCE TESTING:
Test with 10 beta users (5 providers, 5 customers):
- Complete provider registration and approval process
- Complete 3 bookings end-to-end
- Test cancellation and refund flows
- Test messaging between providers and customers
- Test review submission
- Test payment and payout flows
- Identify any UX friction points

SUCCESS CRITERIA:
- Zero critical bugs
- < 5 minor bugs
- 8/10 users rate experience 4+ stars
- All core user flows work without developer assistance
- Average task completion time < 5 minutes

Common Requirements Mistakes

Mistake #1: Too Vague

Bad example: "Users should be able to search for providers."

Good example: "When a customer enters a location (ZIP code or city name) and selects a service type, the system displays a list of providers who:

• •Offer that service type
• •Serve that geographic area
• •Have approved/active status Results are sorted by average rating (highest first) and show provider name, photo, rating, starting price, and distance from search location."

Mistake #2: Too Technical for Non-Technical Founders

Bad example: "Implement OAuth 2.0 with JWT tokens for stateless authentication with Redis session store."

Good example: "Users should be able to log in with email and password. Session should remain active for 30 days unless user logs out."

(Let developer propose the technical implementation)

Mistake #3: Missing Edge Cases

Bad requirement: "Provider can accept or decline booking request."

What's missing:

• •What happens if provider doesn't respond?
• •Can provider counter-propose different time?
• •What if provider already has booking at that time?
• •What if customer cancels while provider is deciding?

Better requirement: "When customer requests booking:

• •Provider receives notification (email + SMS)
• •Provider has 24 hours to accept or decline
• •If provider accepts: Customer is charged, booking confirmed
• •If provider declines: Customer notified, can request different provider
• •If provider doesn't respond in 24 hours: Request auto-expires, customer notified
• •If customer cancels before provider responds: Request cancelled, no charges"

Mistake #4: Describing HOW Instead of WHAT

Bad (too prescriptive): "Use React Hook Form with Zod validation and display errors in red text below each field."

Good (outcome-focused): "Booking form should validate all required fields and display clear error messages when user attempts to submit with missing or invalid information."

Mistake #5: Not Prioritizing

Bad: One giant document with 100 features, all treated as equally important.

Good: "PHASE 1 (MVP - Weeks 1-12):

• •[10 core features]

PHASE 2 (Post-Launch - Month 4-6):

• •[5 important features]

PHASE 3 (Growth - Month 7-12):

• •[10 nice-to-have features]"

How to Use This Template

Step 1: Start with Project Overview

Write the 2-3 paragraph summary. This forces clarity.

If you can't explain what you're building in 3 paragraphs, you're not ready to write requirements.

Step 2: Define User Roles

List every type of user. Define what each can and cannot do.

This prevents scope confusion later.

Step 3: Write User Stories for Each Feature

Use the "As a [role], I want [action], so that [benefit]" format.

Then add detailed acceptance criteria.

Step 4: Document Business Rules

Commission structure, cancellation policy, provider requirements—all the rules that govern how your marketplace operates.

Step 5: Add Technical Context

If you have technical knowledge, specify architecture preferences.

If not, focus on outcomes and let developers propose solutions.

Step 6: Review with Stakeholders

Have everyone who needs to approve review the document.

Get sign-off before sending to developers.

Step 7: Get Developer Estimate

Send to 2-3 developers and ask for:

• •Time estimate
• •Cost estimate
• •Questions/clarifications
• •Technology recommendations

If estimates vary wildly (2x+), your requirements aren't clear enough.

Working with Developers Using This Template

What to Expect from Good Developers

They should:

• •Ask clarifying questions
• •Identify gaps in requirements
• •Suggest simpler alternatives
• •Estimate confidently (±20%)
• •Explain technical trade-offs

Red flags:

• •No questions (they didn't read it)
• •Estimate without clarifying
• •Promise unrealistic timelines
• •Say "sure, we can build anything"

How to Handle Requirement Changes

You will need to change requirements. That's normal.

Change management process:

1. •Document the change request
2. •Developer estimates impact (time/cost)
3. •You decide: proceed, defer, or cancel
4. •Update requirements document
5. •Update timeline and budget

We recommend:

• •Lock requirements for MVP
• •Keep a "Phase 2" list for changes
• •Only add to MVP if absolutely critical

Real Example: Complete Feature Spec

Here's how we'd write one complete feature:

FEATURE: Provider Background Check & Verification

USER STORY 1: Provider Submits Information
As a new provider
I want to complete a background check
So that I can be approved to offer services on the platform

ACCEPTANCE CRITERIA:
- Given I've completed my profile
- When I click "Submit for Approval"
- Then I'm directed to background check form

- Given I'm on background check form
- When I enter SSN, date of birth, address history (5 years)
- And upload photo ID (front and back)
- And agree to terms
- And click "Submit"
- Then my information is sent to Checkr API
- And I see "Background check in progress" status
- And I receive email confirming submission

USER STORY 2: Admin Reviews Application
As a platform admin
I want to review provider applications
So that I can ensure provider quality

ACCEPTANCE CRITERIA:
- Given a provider submitted background check
- When I view provider applications dashboard
- Then I see list of pending applications

- Given I'm viewing pending application
- When I click on application
- Then I see:
  * Provider profile information
  * Background check results from Checkr
  * Uploaded certifications
  * Approve/Reject buttons

- Given I'm reviewing application
- When background check is "clear"
- And certifications are valid
- And I click "Approve"
- Then provider status changes to "approved"
- And provider receives approval email
- And provider can start creating listings

- Given I'm reviewing application
- When background check has issues OR certifications invalid
- And I click "Reject"
- Then provider status changes to "rejected"
- And provider receives rejection email with reason
- And provider can appeal decision

USER STORY 3: Background Check Results
As the system
I want to receive background check results from Checkr
So that admins can review applications

ACCEPTANCE CRITERIA:
- Given background check was submitted
- When Checkr completes check
- Then system receives webhook notification

- Given webhook received
- When results are "clear"
- Then application status updates to "pending admin review"
- And admin receives notification

- Given webhook received
- When results have "concerns"
- Then application status updates to "pending admin review - issues found"
- And admin receives high-priority notification

BUSINESS RULES:
- Background checks are valid for 2 years
- Providers must renew after 2 years
- Check includes: criminal history, sex offender registry, SSN verification
- Cost: $25 per check (charged to provider)
- Processing time: typically 3-5 business days

TECHNICAL NOTES:
- Use Checkr API for background checks
- Store SSN encrypted (never in plain text)
- Webhook endpoint: /api/webhooks/checkr
- Webhook must validate Checkr signature
- Background check results stored in background_checks table (one-to-one with providers)
- Results are never shown to customers (only "verified" badge)

DATA MODEL:
BackgroundCheck
- id (UUID)
- provider_id (UUID, foreign key)
- checkr_candidate_id (string)
- checkr_report_id (string)
- status (enum: pending, processing, complete, review)
- result (enum: clear, consider, disputed)
- submitted_at (timestamp)
- completed_at (timestamp, nullable)
- expires_at (timestamp)
- ssn_encrypted (string, encrypted)

ERROR HANDLING:
- If Checkr API down: Show error, allow retry
- If webhook fails to process: Retry 3x with exponential backoff
- If provider abandons mid-check: Send reminder after 24 hours
- If check expires: Notify provider 30 days before expiration

SUCCESS METRICS:
- 95% of checks complete within 5 business days
- <1% fail due to technical errors
- 100% of approved providers have valid background checks

This level of detail prevents 90% of developer confusion.

Take Action

Step 1: Download the Template

Grab our PRD template (Google Docs link above).

Step 2: Start with One Feature

Don't try to document everything at once.

Pick your most important feature and write it out completely.

Step 3: Review with a Developer

Show them your feature spec and ask:

• •"Is this clear enough to estimate?"
• •"What questions do you have?"
• •"What's missing?"

Step 4: Iterate

Based on feedback, refine your approach.

Then document the next feature.

Step 5: Get Estimates

Once you have 10-15 core features documented, get developer estimates.

Working with Directorism

We help founders write clear technical requirements:

Our Requirements Workshop

What we do:

• •4-hour workshop (virtual or in-person)
• •Interview you about your marketplace
• •Write complete technical requirements document
• •Deliver PRD with user stories and acceptance criteria

Investment: $1,500 Timeline: 1 week Deliverable: Complete technical requirements document

Why This Saves Money

For every $1,500 spent on requirements:

• •Save $5,000-$10,000 in avoided miscommunication
• •Get accurate estimates from developers
• •Reduce project timeline by 20-30%
• •Know exactly what you're building before you build it

We've written 200+ requirements documents.

We know what developers need to see.

---

Ready to write requirements that developers can actually use?

Book a free 30-minute consultation. We'll review your marketplace concept and show you exactly what your requirements document should include.

Or hire us for a full Requirements Workshop—we'll write the entire PRD for you in one week.

Schedule Your Requirements Consultation →