Multi-Vendor Marketplace: A Great Business Idea for Startups
Since the coronavirus pandemic broke out, the whole world has shattered, and people are bound to live inside their houses. Moreover, this global phenomenon has given rise to online shopping unexpectedly.
Hence, businesses are turning to the Multi-vendor marketplace to provide multiple commodities to people online and reap exponential benefits. Amazon, eBay, and Flipkart are the live examples in front of us.
Do you know? As per Statista, e-commerce sales amounted to $4.28 trillion in 2020, and they will grow up to $5.4 trillion by 2021.
Since the multi-vendor marketplace has successfully grown in the last few years, it has succeeded the conventional way of an eCommerce store.
The good thing about the multi vendor store marketplace is that you don’t manufacture or sell the products; instead, let others do it using your web application. Moreover, each one is entirely satisfied in the whole ecosystem, including the business owner, vendors, and customers.
Now, let’s focus on the benefits that the multi-vendor marketplace provides:
Multi-vendor marketplaces have made huge progress over the last few years and are now prompting more vendors seeking online marketplace to sell their products. The whole process benefits everyone involved in the ecosystem.
1. Multi-vendor marketplace owner benefits
Since the website/app owner does not need to make goods and sell them, he is only required to watch over the website/app and product qualities supplied by vendors to customers.
Moreover, he is not bound to opt for a particular vendor or rely only on a few ones; instead, he can engage multiple vendors to provide products to customers.
- One can target different geo-locations across the globe, gaining enormous popularity and access to customers.
- Other brands will contact themselves to sell the products; hence, you will be able to coordinate them and the consumers simultaneously, leading to the reliability of your platform.
- Since mobile users are increasing day by day and the need for online shopping due to the coronavirus pandemic, you will always reap profits.
2. Vendors benefits
Vendors also make significant profits by selling their products through multi-vendor marketplace. This platform is a boon for small-size vendors who can get recognition through it and make profits.
Moreover, vendors can add items and products to the lists on the site. It facilitates the way for them to showcase their products to a large audience.
3. Customers benefits
Undoubtedly, customers get products at reasonable prices due to the competitive environment amongst vendors. If you have ever shopped at eCommerce development websites like Amazon, Flipkart, or eBay, you must be aware of how convenient it is to shop at these platforms.
Earlier customers had to face problems like high prices, fewer alternatives, and inconvenience in comparing the products. The multi-vendor marketplace is far better in providing various choices than online stores of particular brands. Moreover, customers get comparison options to check and compare products.
Below are the multiple market commodities you can sell over a multi-vendor marketplace:
1. Fashion marketplace
Fashion marketplaces have already fuelled up online sales and customers love to shop for various fashion products like apparel, footwear, trendsetter dresses, etc. According to a report, the online fashion industry will grow up to $992 billion by 2024.
2. Grocery marketplace
The Grocery marketplace is thriving even after several drawbacks like storage, delivery, and operational costs. Since corona affected our day-to-day lives, people are buying groceries online.
Amazon, the big multi-vendor marketplace, had a 32.7% market share in 2019, whereas Walmart and Target are also gearing up the market through their online eCommerce businesses.
3. Jewelry and ornaments marketplace
Jewelry and ornaments marketplace has also left indelible prints over online e-commerce businesses where Amazon claims to have a 50% market share in the US. Moreover, as per Statista, the jewelry market was $278 billion in 2018, and it will grow up to $480 billion by 2025.
4. Digital products
Digital products are also in high demand nowadays. Be it online games, e-learning courses, or e-books; they accumulate lots of profit share in the digital product marketplace. Amazon, Walmart, and AliExpress are the most popular marketplaces selling digital commodities.
Moreover, the digital product market size will grow up to $240 billion by 2022, which was $160 billion in 2016.
5. Furniture marketplace
Since the furniture marketplace provides multiple furniture choices, people love to buy furniture online. The retail giant Wayfair has a 33.4% market share in online furniture sales, whereas Amazon has a 29.7% market share.
Moreover, as per a report, the furniture marketplace size will be approx $290 billion in 2023.
6. Cosmetics marketplace
Beauty product sales have unexpectedly increased over the years, and people purchase them through online platforms as they get multiple choices. According to a report, the cosmetic marketplace size will be $758 billion by 2025.
Now, let’s get into the essential components of the multi-vendor marketplace website/app:
Easy Registration for Vendors
Since vendors are the first part of the whole ecosystem, it becomes essential to ensure easy and quick registration for them so that more and more vendors could come and join the platform.
Quick Product Search
Product searches must be quick, fast, and intuitive at the same time. Customers like to stay longer on the platforms that provide intuitive search results. Moreover, it enhances the customer interest to browse more and more for the products.
Attractive Layout of Product Listing
The marketplace must include powerful lists of products which also ensure the variety of products so that customers can get the products of their choice.
Secure Payment Gateway
This is the most important part of the multi-vendor eCommerce business as customers and sellers both require secure payment options. Thanks to blockchain technology you can integrate blockchain technology to ensure payment methods for the products.
Marketing Bait to Allure Customers
Try to provide discounts and offers for regular customers as this will work as bait for new and existing customers and will also be one of the triggers to increase retention rate.
Wrapping Up!
The multi-vendor marketplaces are increasing, and the startups & enterprises are turning towards it to benefit from this business idea. You can also get the multi-vendor eCommerce marketplace solution by contacting India’s best app development companies and take your business to a new height.
In no time, you will be among those who reap the benefits of having a multi-vendor marketplace website/app.
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