Why Should You Build a Multi-Vendor Ecommerce Store?
Online retail market is fast-growing and hypercompetitive at the same time. It will probably continue follow the same impressive growth trajectory in next few years. In fact, Mckinsey estimates that by 2020 online retailing could generate $420 billion to $650 billion in sales. The landscape of online shopping has become incredibly popular and nearly 85% of online shoppers prefer shopping on multi-vendor ecommerce store. Customers are loving the convenience of being able to buy things from the comfort of their home. They are also demanding wider range of products, all time availability anddiverse offers on these products. So now is the time we must invest in creating multi-vendor ecommerce store. The earlier we begin, the better it is.
What is Multi Vendor Ecommerce Store?
Unlike the normal retail online shop where only one vendor operates with its range of products, multi vendor ecommerce store is a marketplace where multiple independent vendors can operate and manage sales of their own products through one common web store. Think of it as a virtual shopping mall that has many separate shops operated by their own shopkeepers. Here is what you can expect from multi-vendor ecommerce store:
- Customers can search for the same product from a range of products supplied by multiple vendors
- You will be able to sell unlimited products from unlimited merchants and get commission from each sale.
- One order from customer can have products from different vendors
- There is a common payment processing system and customer pays just the total amount which later gets distributed to various vendors.
- Marketplace owner owns the full control over all vendors & help to build a healthy relationship too
You will not be regretting about taking a fact-based decision on opening a multi-vendor store today as it is certainly poised for speedy growth in future. Consumer expenditures will be increasing as high as threefold by 2025 on what it is today. Here are the top reasons:
Own a complex and unlimited range of products
It is practically impossible to offer a wide range of products on your own. As the owner of a multi-vendor store, you can sell unlimited range of products from unlimited number of vendors without stocking a single product.
No Hassles of managing inventory
Unlike the online retail store, in the multi-vendor ecommerce store sellers will be managing their accounts and products so you don’t need to keep a track of inventory for products and mange the complications related to that.
Gain enormous time to focus on marketplace promotion
Since all the operational activities related to product selling like managing logistics, inventories, product updates and upgrades, pricing etcis managed by individual vendors you have more time to focus on promotional activities to gain incredible growth for almost everyone in the process and generate more awareness for your brand .
Save the cost and pain of managing operations
Except for some initial investment required to setup marketplace, you don’t need to drain your money. You no longer need to invest in the resources who will manage any products related tasks as vendors will do their own store management. You can rather focus on identifying things that will ensure best user experience, prompt support and better after-sale services from vendors. This will in turnhelp in increasing the trust on your marketplace and profits year after year.
Assure profits and convenience to vendors
Most of the vendors are put off by economics of running an online store. They need to hire a technology team and their requirements are not clear. Learning in the process seems to be a daunting experience and cumbersome too. With online marketplace you can assure the convenience as they have the platform ready to use and as soon as they put their inventories up they are ready to connect with buyers.
Owning a marketplace ecommerce store is a wonderful way to make money but we advise you to target a niche market. Give your customers the convenience to buy from anywhere and a wide range of products.