What is Multi Vendor Ecommerce Website – Everything you need to know
What is Multi Vendor Ecommerce Website?
Multi-Vendor Ecommerce Website is the best eCommerce business concept when implemented right. The big players in India are Flipkart, Amazon & Snapdeal, but you can find favourite niche multi-vendor sites such as ThemeForest or TemplateMonster. The idea behind multi-vendor sites is to allow anyone to create their semi branded store under your eCommerce marketplace website and list their products for sale.
How Multi-vendor eCommerce website works?
When customers come to your multi-vendor site they can pick one item from “Company A” and another from “Company XYZ”, and it is all processed through the same shopping cart. The multi-vendor shopping cart system divides the payments behind the screen between two vendors. This ecosystem of people buying and selling in one place helps customers find the more diverse range of products, and you, the site owner can make some big bucks through commissions.
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 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.
Benefits of Multi-Vendor Ecommerce Website?
- Sell a vast range of products: Numerous vendors feature 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 quickly.
- 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 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.
- 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.
- 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.
Why is Multi-Vendor Ecommerce Website best eCommerce business model?
Multi-vendor eCommerce website or eCommerce marketplace has many advantages over single-vendor e-commerce store like, extensive, product range, better adaptability, simple business administration, less investment and better returns. It’s not just by chance that world’s biggest e-commerce websites are all based on the multi-vendor business model, and they are successfully operational from several years in a row.
Doors to building the next billion dollar company in eCommerce domain are open, here everything is running online, and brick and mortar businesses are now slowly towards death.
Your first few steps to start Multi-vendor eCommerce websites:
Your attention on the more potent things will support your e-commerce business idea. You should observe the critical steps of growing a multi-vendor website into an efficient business, below are few key steps which you may follow to be on the right track to start your multi-vendor e-commerce platform.:
- Deciding a Niche
Looking into the present market scenario, it is ideal for you to develop e-commerce business targeting a particular or bunch of product or segments and stay out of the crowd. You must dedicate the right amount of time to discover, which niche is unique, try statistical surveying to know the different thoughts and regions where those products can be sold.
- Feasibility Study
Judge the possibility of the thoughts before dreaming of business development. The eCommerce boom has led to some online multivendor eCommerce platforms, which span across numerous industries. Moreover, it has also become highly feasible to start your ecommerce company by just choosing an e-commerce platform. However, with increasing competition you have to be choosy and not become a clone of big competitors, be ready for change and stay out of the crowd.
- Business Planning and Research
For any business, planning is the key to success. It helps you to determine the brand itself that makes a place in the hearts of its audience. Before jumping into anything, there are couples of things to remember, to consider things like venture model, sources of income, marketing strategy and more in the planning stage before settling up the marketing plans. Since it is vital for e-commerce business to know where its potential clients? Where are they? What is the best medium to reach them?
- Website Development
In simple words go ahead with multi-vendor e-commerce platform (shopping cart system) which allows you to own, enhance, add new features and customise the platform according to your business needs and serve as a long-term solution. There are many e-commerce solution providers in the market but make sure you choose the best and the most affordable solution and do not burn your pocket as you need more and more money to promote your new venture. You can plan, outline and build up your multi-vendor e-commerce website without any hard work when you hire an end-to-end eCommerce solution provider.
We are not going to write anything about the last and most important step which is promotion because we think promotion or advertisement depends on your market segment/niche. However, we suggest you hire a digital marketing agency as they are expert and they can help you in a better way to get your first few sales.