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Planning to Launch a Multi Vendor Ecommerce Marketplace? Here is Your Go-to Guide

shreyazshawn profile image shreyazshawn ・6 min read

The aspiring entrepreneurs are deliberately searching for business models like multi-vendor marketplace and dropshipping. The reason is quite simple. These business models are known for their convenience. Being the owner of a multi-vendor marketplace, you can earn money by selling the products without owning an inventory. Also, you can make your consumers enjoy the fruits of hassle-free shopping using your multi-vendor marketplace.

What is a multi-vendor marketplace?

A multi-vendor marketplace is a website or an application where several vendors combine and sell their products under a single platform. The admin of the marketplace will handle the overall transactions and operations that happen in the marketplace. The vendors will manage their own inventories. The consumers will enter the website that is the marketplace and will be able to access the products of all the sellers. They will purchase the product of their choice and for them, the website is the brand and not the seller.

Interesting Stats about Online multi-vendor marketplaces

  • 52% of U.S teens have chosen Amazon as their favorite shopping websites.
  • Around 31.7% of teens have heard about the product through social media and have purchased it online.
  • 60.6% of online users have used mobile apps to purchase their products.
  • Taking into account profitability, customer service, communication, and ease of use, Etsy has been announced as the most popular marketplace by scoring 6.59 out of 10.
  • Digital-first retailers are the most downloaded retailer apps having 69% of downloads.
  • e-bay has reached 183 million active buyers worldwide and the growth has increased by 2% compared to last year.

Different Types of Multivendor Marketplace

The Multi-vendor marketplace can be classified into 3 types

  • B2B – B2B multi-vendor marketplace is the scenario where one business makes a relation with the other one. In other words, it can also be termed as a platform that connects vendors with buyers, suppliers with retailers and manufacturers with distributors. The real-time examples for B2B marketplaces are Alibaba & WallMart.

  • B2C – B2C multi-vendor marketplace is the scenario where the vendors or the sellers will directly sell their products to the end-users that are to the customers. The good examples for the B2B marketplace are Amazon & Flipkart.

  • C2C – In the C2C marketplace, the customer will directly deal with businesses. The seller can be a customer likewise a customer can be a seller. eBay, Taobao & OLX are the best examples forC2C Marketplace.

Business Model - Multi-Vendor Marketplace

The business model of a multi-vendor marketplace is not a complicated one. The marketplace model facilitates a healthy communication between the vendors and the customers. The model is framed in such a way where the business owner (the admin) will create a website to which multiple vendors get registered themselves. The vendors will list all the products and their services on the website. Here the admin doesn’t need to worry about handling the inventory and delivering the orders. These are all taken care of by the vendors themselves. The admin of the site will get the commission for all the orders delivered by the vendors.

Vendors will be focusing on their products, their inventory and their delivery alone. They need not worry about the site maintenance and the customer support as it will be dealt with by the admin of the site.

The customers will visit the site and will go through the products or the services and they will order one of their choices. Once the order is placed and the payment is done, a certain amount is transferred to the admin’s account as a commission. This is how the marketplace works.

Marketplace Features

With the dedicated business model, we have framed our multi-vendor marketplace. Now we need to make sure that it supports the features that are essential for vendors, buyers, and also for the admin.

The essential vendor features

  • A simple sign-up procedure is required.
  • Easy ways to import and manage their products.
  • A user-friendly dashboard for listing, selling, dispatching products
  • Simplified order receiving and processing procedures.
  • Instant notifications to vendors when a product is ordered.
  • Essential marketing tools like coupon code management and product promotions.

The essential buyer features

  • Enriched UI & UX design
  • Easy searching options to search for products and browse their categories.
  • Add-on features like a wish list and adds to cart are needed.
  • Hassle-free check-out process.
  • Easy to view the orders and real-time tracking of orders is essential.
  • 24/7 customer support.

The essential admin features

  • Single-step monitoring, managing and controlling everything that happens in the platform.
  • Easy to customize the front-end appearance of the marketplace without affecting the coding.
  • Possibility to announce seasonal offers and new products
  • Tools to run marketing promotions.

Marketplace integration

The complete and successful marketplace includes the integration of third-party applications to fulfill the user’s purposes. The classified gateways that are to be integrated with a marketplace are listed below.

Payment gateway

The payment transaction mainly happens within your marketplace and so it is very essential to integrate the payment gateway with your marketplace. We may deal with several payment types that can be from the customers who pay for the product or from the vendors when they sign-up by paying or we may give payouts to the vendors or we can even have affiliates to whom we keep paying. So to support the whole process, make sure you have integrated the payment gateway.

Shipment gateway

There are several logistics that are efficiently taking care of the delivery process. It is good to select the right shipping gateway to simplify the purchase and delivery of the products to the consumers. Search for the best third party logistics in your region and make sure that they are cost-effective and also take care of better shipping processes. They should deliver the product safely in the hands of customers.

Communication Gateway

Your marketplace should have easy communication with your vendors and customers. You may need to send messages or emails regarding the new arrivals or any special offers or special discount coupon codes. In this case, you need to have a perfect communication gateway that has to be integrated with your marketplace.

How to Start and Launch a Multi-Vendor eCommerce Marketplace platform

Launching a multivendor marketplace platform can be done in two ways. The first one is, you can develop your marketplace from scratch. For this, you need a dedicated developing team who are skilled enough to bring out your requirement in the form of an e-commerce website. This process is a little tedious as it takes more time to develop a complete application for your business. Starting from selecting the website name and hosting space you need to involve yourself. Next, you need to select the perfect platform like Magento or any other that has major features to be used. You should also finalize your theme or template and then finally after confirming the testing process, your marketplace will be deployed. This is one option that you can opt for.

The second option is to have a ready-to-launch platform like Zielcommerce. The tailor-made platforms have their own benefits of being highly secure, scalable and mobile-ready.

About Zielcommerce

Zielcommerce is one of the leading e-commerce marketplace software for entrepreneurs who have focused their vision of building a next-generation marketplace. Its robust in-built features make it run the application flawlessly and give a unique standing in the digital market.


  • Intuitive UX design
  • Easy to customize.
  • Exclusive mobile application
  • One time cost for the lifetime license
  • Dedicated customer support
  • Compatible with all devices
  • Complete social media integration
  • Smart vendor dashboard
  • In-built with marketing promotional tools
  • Global currency acceptance
  • On-time notifications
  • Supports multi-language

Customers can be delighted with the end to end support of Zielcommerce. Vendors can enjoy complete transparency in all the operations. ZielCommerce will be a successful partner that can make your marketplace work effectively and will enhance your business by getting you more customers.


Finally, let you not get complicated in the process of launching your multi-vendor e-commerce marketplace by choosing the wrong platform. It is very essential to evaluate the functionalities and features before you start entering the process of development. With the perfect planning and great marketing strategy launch your multi-vendor e-commerce platform and be successful in your business.

Launch Your Own Multivendor Marketplace Website Today!

A Complete Power Packed Multi-vendor Marketplace solution


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