Multi-Vendor Marketplace Development: 8 Benefits

An online store representing the products of many different sellers in one place has become the most popular form of an eCommerce platform. In such a model each product owner, seller, or reseller can run their shops themselves, while the platform gives its customers a variety of goods to choose from. The marketplace owners in their turn solve various technical and management questions like e-payments, order processing and tracking, goods return procedure, cash-back, etc.

Thanks to world-famous and super cost-effective eCommerce giants like Alibaba, Amazon, and Ebay multi-vendor marketplace development become a synonym for success. According to Forbes, Amazon earned $469.8 billion in profit last year, and Etsy as much as $21 billion. But what exact advantages can a multi-vendor marketplace bring to your business? Today Fively marketplace development experts help us to answer this question with the top 8 benefits of choosing a multi-vendor online store development.

Benefit 1: A greater variety of products brings you more clients and profit

A multi-vendor shopping portal is a desired e-platform for many businesses and brands, as they know that the better variety of products customers have, the bigger the chance that they buy at least something, and in their store as well. Plus, it makes the buying process for customers even more comfortable, as they have a good assortment of goods, get everything they need in 1 place, and can pay in bulk. These advantages make a multi-vendor marketplace much more attractive both for vendors and customers than those which sell only 1 product.

Benefit 2: You make money faster and easier

This benefit is closely connected with the previous one: because of a great variety of sellers and products, your marketplace attracts much more clients than single-product ones. From each product item being sold at your e-store, you get a certain amount of share and make your business profitable very fast. Plus, your platform quickly grows in popularity.

Benefit 3: You don’t have to maintain various inventory

Maintaining various inventories from several vendors is too expensive and time-consuming for the biggest part of eCommerce startups. Choosing a multi-vendor shopping store can be a perfect decision, as here vendors should keep and manage their inventory on their own. This benefit allows you to save up a good sum of money, time, and human resources, which are especially important at any company’s launch.

Benefit 4: You spend less on operation costs

When you run a multi-vendor e-store, you don’t think of how to design, represent, and sell each product – this is the responsibility of vendors, operating on your platform. Instead of this, you can fully concentrate on promoting your e-store with high-quality ads on multiple platforms, tuning delivery and customer management, creating a bonus program for regular customers, and other things that can boost your sales.

Benefit 5: You create competition for the best prices and quality

One more important benefit of running a multi-vendor shopping portal is that people come here in search of the best price and quality they can find on the market. A good marketplace solves this task, earning more and more satisfied customers over the course of time. Vendors in their turn need to improve their products’ quality and price range in order to overcome competitors. Thus, marketplace clients will have more interesting offers to choose from, and the popularity of your platform will quickly grow.

Benefit 6: You can get additional profit with delivery management

Being a marketplace owner means you’re reliable for the delivery of all vendors’ goods, which is, of course, a daunting task. But with modern tracking and logistics technologies, you can trace the needed deliveries from all sellers at the touch of a button. Plus, if you have such features as quick delivery and delivery to the door you can make an additional profit and earn trust in your shopping portal.

Benefit 7: Right customer management boosts trust

Multi-vendor online store managers always check the quality of all goods that are displayed on their platform, but of course, they can’t check the quality of every single item. That’s why clients sometimes get broken or looking different products and leave complaints on the marketplace. And this is a brilliant opportunity for a marketplace to build trust and gain more clients! A wise customer policy with a system of bonuses, refunds, and gifts in case of getting a product of poor quality can significantly raise trust in the platform and increase the number of regular customers.

Wrapping up

In this article, we enlisted the core benefits of choosing a multi-vendor online store development over a single-product one, which can help you to have a quick start on the market, less sunk costs, and more satisfied customers.

But of course, to make use of all these benefits your multi-vendor e-store should be an ideal fit both for vendors and customers. Successful marketplace owners should provide their vendors, partners, and clients with the best possible online setup, a variety of payment options, and a good pool of clients to sell to. So make sure to choose a trusted software vendor and a professional marketing team to make your multi-vendor online store a perfect one that will be loved and recognized by customers worldwide.