Let’s learn the proper requirements to kick-start an online marketplace, and when and what would be the right time and right platform to create a multi-vendor marketplace.
Before that try to understand this:
An online multi-vendor marketplace is a huge shopping platform where one can search, find and buy products from various vendors:
- Marketplace owners can make huge revenue through seller commissions and subscription fees
- Third-party sellers get a wide exposure and offer products for sales.
- Vendors of the marketplace can reach wide reach and offer a variety of products for sales
- Buyers can have multiple offerings of products and services from multiple registered vendors
- A regular or a simple e-store is different from an online marketplace as in a single eCommerce store buyers purchase from the store owner directly. A small online store has products and services of a single brand.
In a regular eCommerce store, one can purchase products from a single vendor directly on the platform. Whereas multi-vendor marketplace avails buyers a huge variety of products to choose from.
Availability of a wide range of products is the key benefit of a marketplace. It allows the consumer and vendors to get control over the products and services more easily compared to a regular eCommerce store.
Online marketplace brought zero inventory advantages to its owners. Because the admin of the store doesn’t need to have a separate inventory to run a multi-vendor marketplace. Thus, it allows the store owners to grow the business and earn huge profits through its multiple revenue channels like commissions and membership fees and plans without even worrying about inventory management.
Marketplaces give your products and services a global reach to make customers choose from multiple brands and vendors. So sellers can have massive recognition and boost in sales and revenue by selling on the marketplace.
An online marketplace is a common platform for multiple stores of different vendors. Multiple products of multiple stores with a wide range of products grab customers’ attention which results in more visitor traffic comparing to single vendor stores.
In order to create a multi-vendor marketplace, an online store owner needs to have a clear business idea and plan for a better understanding of the market realm, users, and their business requirements.
Reaching your target market is now made easy with a marketplace solution. Because to any owners, it is important to understand and reach the target audience size. So it is important to identify the size and behaviors of the users.
Converting your online store into an online marketplace platform or building up an online marketplace requires the same amount to invest. One of the main advantages of Marketplace over e-store owners is that in the online marketplace you don’t need capital for inventory.
Multi-vendor marketplace focuses on the revenue outcome. It always keeps checking with the customer engagement. Set up a plan to achieve your aim in the most proficient way. Now ask yourself, how a multi-vendor marketplace adds value to the market it services.
There are various ways to build an online marketplace, but there are only major ways I would like to list here, they are:
- SaaS-based model
- Self-hosting model
- Develop from scratch
Among the above ways, the SaaS-based model is the best and better way to create an online marketplace. For the eCommerce store owners, an extensive multi-vendor extension available can easily convert their online eCommerce store into an Amazon-like marketplace.
Such kind of marketplace extension and add-ons are available with Webnexs. These multi-vendor marketplace extensions can convert an online store into an extensive marketplace website in steps. Webnexs offers a broad feature mobile application for both Android/iOS.
Having a mobile app for the online store will greatly help to engage potential customers with your site and help them to explore the entire store in their palm. It would be beneficial for both the multi-vendor store owner and vendors at a time.
Thus, a multi-vendor marketplace website brings more customers and offers a wide variety of products to online shoppers. The fully-functional features of the marketplace are its biggest advantage that lures the visitors to stay connected to your marketplace website.
Give it a try, get your marketplace business consultation today.