How can Ecommerce Marketplace help your business?
Ecommerce Marketplace

A marketplace is an eCommerce website where you can find a variety of products from different brands coming from multiple vendors, shops or person showcased on the same platform. The marketplace owner is responsible for attracting customers and the processed transactions, while the third party vendors deal with the manufacturing and shipping. The primary entities of a marketplace model are the marketplace owner, sellers and the customers.
Online Marketplace streamlines the business operations through one simple portal, where the vendors and manufacturers sell their products directly to the consumers, therefore avoiding the stagnant process of stocks holding.
The top-grade Ecommerce stores are opening their gates for the multiple vendors to allow them to sell the products in their store. Amazon, eBay, Rakuten, Walmart, Sears, and Jet are names to few Ecommerce who have turned to multi-vendor marketplaces to give an edge to the Ecommerce stores and their bottom lines.
Here, the payment is made to vendors after reducing the commission by the marketplaces.
It signifies building a marketplace is quite advantageous and businesses can reap huge rewards.
But, building marketplaces is very difficult- this is the myth most o the entrepreneurs carry in their mind. This is half correct. The reason is
How do Marketplace Entities Benefit?
Business Benefits:
· A marketplace allows the business operators to charge a cut on the products that the sellers sell and exponentially increase the profit opportunities.
· Marketplace provides a transparent purchasing process considering the factors such as the price of the product and availability of the stock — all these are accessible on a single platform in an open environment.
· Better opportunities for sellers and buyers to establish new trading relationship either within or across their supply chain.
· Time constraints for trading across multiple geographies are eliminated because of the online platform which operates round the clock.
Benefits for Sellers:
· Small retailers who want to reduce their marketing costs or cannot establish their own eCommerce website can align themselves with these more substantial businesses and gain visibility through their fulfillment options.
· Regular exchange of quotes between the new and the old vendors is possible, thereby streamlining and maintaining- standardization.
· A marketplace platform acts as an additional sales channel to market and sell their products.
· Enables oversea sales by providing opportunities to trade in the international e-marketplace.
Benefits for Buyers:
· Buyers have a variety of products to select and compare on a single website. Thus helping them find the most reasonable price for the best quality product.
· Real-time updated information on the price and inventory makes it easier for the buyers to get the best deal.
· The buyers can find established and trusted vendors and build a strong relationship by dealing exclusively with them.
Conclusion
The most important challenge for a marketplace is to attract the sellers and buyers to trade; the second next critical problem is to turn them into active users of the platform over a long haul.
That’s why marketplace owners should always come up with new ideas on how to keep the sellers engaged for a long time, and at the same time increase their customer base.
For more information regarding Ecommerce Marketplace development, click here.
