Everything You Want to Know About Multi-Vendor Marketplace in Ecommerce

The latest trend – Multi Vendor Marketplace

A place where trade is performed in between a buyer and a seller is known as a marketplace. The scale of these marketplaces can be huge. Online marketplaces or stores are ideal places for transaction as one gets the access to a huge variety of products from various sellers.

In And Out Of Multi Vendor Marketplace

For both owners and sellers investing into ecommerce based multi vendor marketplace is a win win scenario. Let us read what these are:-

• Ideal Way to Monetize - Multi Vendor Marketplace is an ideal way where you do not need to take the hassles of selling products online. Here one invests to create a platform for sellers who sell their products and manages them all by themselves. There is no requirement for the owner to even manage the logistics also. So, by minimum effort one can convert their website into a mobile app or an ecommerce based online site and monetize on it.

• Expensive – Practically, one cannot convert an ecommerce based website into an online store or marketplace by using development know how in house. For this expert professionals or multi vendor marketplace portal development company having years of real time knowledge must be hire. An ecommerce solution having a lot of automation and connectors is the one which can be used as a flexible marketplace and usually involves a lot of work.

• Maintenance Related Difficulties– The technical challenges for maintaining and running a marketplace is really high. The service provider of the platform helps in the management of the store and order efficiently. A marketplace will only be successful if it operational methods are easy and user friendly. This is the reason most of the big marketplace companies put more stress on hiring technical personals.

• Marketplace and E-commerce Store are Different – As the operator of the marketplace the main job is to manage customers and manage the sellers. Here you are the one who decides which product to display. If there is a product which is not relevant cannot be displayed by your own will.

• Low Margins –In general, every sale happening in any online marketplaces fetches an operator a commission in between 15 to 30%. An ecommerce based online store however fetches a higher percentage varying anywhere in between 25 to 50%.

• First Recommended Party-Since the marketplace fetches buyers as well as sellers the real challenge is to decide whom to recommend first. It is recommended to fetch sellers initially as along with sellers come products. If product quality is good then automatically it will attract purchasers.

• Automation – If one wants to monetize by investing into a profitable marketplace online one must make most of the things automated in nature.

A marketplace hence is different from an ecommerce based solution as here the operator manages and controls everything.

Summary- Online marketplaces like this are beneficial both to the seller as well as the owner. Hence, more and more investments can be made in this sector for reaping better profits.

The author works for a leading web development company and is an expert in rendering professional website design for all types businesses.