Due to the high internet penetration all over the world, the ecommerce industry has emerged phenomenally across the globe. In the USA, retail ecommerce sales are expected to be $548 Million in 2019. An interesting fact here is that popular multi-seller ecommerce companies Amazon, Ebay have nearly captured the 60% of the US ecommerce market. Similarly, in other countries the market share of Amazon, Ebay, Etsy, etc. is very high.
A multi-vendor marketplace is that where different sellers can sell their products by creating a unique store front. The vendors manage inventory, logistics, products additions, etc. things at their own end. The owner of the marketplace can earn commission on sale of every product or by the other revenue generation methods as given below.
There are 2 types of multi-vendor businesses:
B2B Multi vendor business:
For bringing transparency and remaining competitive, many B2B commerce companies are investing in online marketplaces. Alibaba & Walmart are the popular names in the B2B ecommerce industry.
Business Model of B2B Multi vendor Ecommerce Marketplace:
B2C Multi vendor Business:
Similarly, these days many aspiring entrepreneurs prefer to invest in B2C multi selling websites. The best examples are: Amazon, Airbnb, FlipKart, etc.
Business Model of B2C Multi vendor Ecommerce Marketplace:
Here are top revenue generation methods of a multi-vendor ecommerce website or marketplace:
Here is the list of features that yours’ B2B or B2C multi-vendor ecommerce website or mobile app must have:
Multivendor Website & Mobile App Features from Buyers’ Perspective
Multivendor Website & Mobile App Features from Sellers’ Perspective:
Multivendor Website & Mobile App Features from Admins’ Perspective
As I’ve written in the 1st paragraph, the multi-vendor ecommerce marketplaces such as Amazon, Alibaba, FlipKart, etc. have already grabbed the 60% of market and it becomes tough for an ecommerce startup to make their presence. To excel in such a competitive industry, you need to develop an ecommerce multi-vendor website/app by targeting the hyper-local market. Initially, you can start an online multi-vendor marketplace like Amazon, Etsy, FlipKart, etc. in our local city or state by understanding the audience needs and once your startups click well, you can expand it in different regions.
To start, building a multi-vendor marketplace from scratch can cost you thousands of dollars. You can easily start your multi vendor ecommerce marketplace with turnkey solutions like YoKart, CS Cart, etc. Here is a comparison chart on best multi vendor ecommerce platforms features: