Multi-vendor marketplace: When Should You Start One of Your Own?

The online marketplace, just like their offline counterparts, is essentially a common ground for sellers and buyers to engage and execute transactions. For example, Amazon — it is a digital marketplace where people buy pretty much everything they need: furniture, cosmetic items, clothes, groceries — the list goes on. In such a scenario, the marketplace serves as the middle ground where parties conduct business on either end of the equation, i.e. buyers and sellers. Moreover, unless you have been living under a rock, it has been for everyone to see that multi-vendor marketplaces have grown phenomenally well over the last decade and seem to show absolutely no sign of slowing down.

If you consider that online shopping in China will result in buyers spending $1.1 trillion, you know the future of e-commerce looks very, very bright. Another statistic worth mulling over: retail e-commerce sales across the globe are expected to generate revenues of $4.88 trillion by 2021. Also, let’s not forget the fact that as time passes, more and more retailers and brick and mortar stores are shutting shop and jumping on the e-commerce bandwagon. You know why is that? Because that’s where all shoppers are. In just the US, 5,000 stores ceased operations in 2017. This number has only grown since then. So, to answer your question: The time to set up a multi-vendor marketplace is NOW!We also put together a list of some handy tips to get you started.

1. Just because the numbers make a persuasive case for e-commerce doesn’t mean you can jump into the world of digital commerce head first. It is essential that you take time to evaluate your resources, expectations, and goals before you move on to other aspects of setting up a multi-vendor e-commerce platform of your own.
2. Don’t strive to be a part of the rat race; instead, focus on how you can stand out. It is crucial because there is no dearth of such marketplaces, no matter the product or service one may be looking for. Which means there’s much competition you have to get through to ensure that your target audience sees and appreciates what you have to offer. It may also help to remember that without customers, you won’t be able to add vendors either. So, yes, ensure that you know how you will make your offering stand out from the crowd.
3. As the business grows and evolves along with the throes of the market, the goals and priorities are bound to change. Also, yet, it is vital that you make sure that you never lose focus on one thing: Delivering the highest quality of customer service. It would help if you never forgot to try to give customers a simple shopping experience.

A multi-vendor eCommerce marketplace solution is undoubtedly the way forward in the realm of e-commerce. However, it is imperative to tread carefully, i.e. find a trusted vendor for the relevant expertise, strategic planning, and tactical execution. It will help you make sure that the marketplace’s success is a given, not an uncertainty.

Olivia Johnson is a technical writer, love to share stuffs related to technology & development.