Is a transformation age of online shopping, which is changing day-by-day as eCommerce entrepreneurs realise that investing in multi-vendor eCommerce store is a better deal. E-commerce investors, as well as business owners, are favouring multi-vendor eCommerce model (also referred as online marketplaces) over regular online stores because of numerous benefits.
Let us explain you, that what is a multivendor eCommerce solution and why entrepreneurs like you the choice to start an eCommerce business on multi-vendor eCommerce model?
What is a Multi-Vendor Ecommerce Store?
Every seller/vendor or merchant has a separate shop area inside your multi-vendor eCommerce platform. The platform owner only bothers with order processing, tracking and payments, and charge commission to vendors.
Sometimes referred as an eCommerce marketplace, multi-vendor eCommerce websites shift the task of maintaining inventories, logistics, product descriptions, and updates to individual sellers by giving them a system to manage it all as per their convenience and goals.
Popular eCommerce brands using multi-vendor eCommerce model
Some of the biggest eCommerce brands in India are using the same multi-vendor eCommerce model. Some of the well-known Indian brands are as under:
The largest online marketplace in India doesn’t need an introduction, founded in 2007 by Sachin Bansal and Binny Bansal. It is registered in Singapore, and it operates in India, where it is headquartered in Bangalore, Karnataka.
Website – www.flipkart.com
Snapdeal is an online marketplace, based in New Delhi, India. The company was started by Kunal Bahl, a Wharton graduate as part of the dual degree M&T Engineering and Business program at Penn, and Rohit Bansal, an alumnus of IIT Delhi in February 2010.
Website – www.snapdeal.com
Jabong.com is an Indian fashion and lifestyle e-commerce multivendor portal, selling apparel, footwear, fashion accessories, beauty products, fragrances, home accessories and other fashion and lifestyle products. The company is headquartered in Gurgaon, NCR.
Website – www.jabong.com
What is fuelling the eCommerce marketplace Platform?
eCommerce entrepreneurs have become more interested in Multi-Vendor Ecommerce Store rather than a basic online shop. Below are the reasons for the marketplace shift;
1. Sell vast range of products
Some vendors feature the products sold on a multi-vendor store. Any eCommerce store that provides a huge variety of goods is the bounce to generate traffic and sales easily.
2. It shifts half the headache
Taking care of logistics, inventories, product additions & upgrades, pricing and various other details that come with running an online store require the big team and efforts. Multi-vendor store shifts these necessary tasks to your marketplace sellers because ultimately your sellers have to take care of these things.
3. Lesser expenses
As every seller will be managing his/her products on their own, you don’t need to hire people to do it. Your team can spend more time on answering customer’s queries, scaling, and marketing. With an experienced small team, you can drastically bring down expenses.
4. No inventory
Warehousing and human resource related costs can break the back of any eCommerce startup. Starting a multi-vendor store will solve this big startup crunch as sellers will take care of inventory related complications.