Why Multi-Vendor Marketplace Is The Key To Ecommerce Success

By | Jul 10, 2018 | 1 Comments | 1221 views |
  • Why Multi-Vendor Marketplace Is The Key To Ecommerce Success

What is a Multi-Vendor Marketplace

A multi-vendor marketplace is an ecommerce setup where multiple vendors come together on a single platform to sell different orsameproducts or services. This can be compared to a real-life mall where we see different shops selling a variety of different products or services.

Amazon. eBay, Flipkart etc. are some very popular examples of online marketplaces. This model is a virtual goldmine for entrepreneurs as it ensures better business than a regular online store without any investment in inventory. Different vendors can be registered on a single platform where they display and sell their products or services by offering a commission to the business owner.

The Vendors do not need to invest in website development or maintenance under this setup. They can just focus on running their business and can benefit from the large traffic volume of such platforms.

An ecommerce market attracts more customers and gets higher conversions as the customer love the variety of products and the competitive prices offered by different vendors.

This is a WIN-ALL model of ecommerce where the business owner, vendors and customers all get a better deal when compared to a simple online store.

Types of Multi-Vendor Ecommerce Setup

The best thing about multi-vendor store is that you can work out a variety of use cases and even come up with a disruptive model of your own. Some of the popular and time-tested use cases of a multi-seller ecommerce website are;

  • Niche Vertical Marketplace

This e-commerce setup targets a specific audience segment by offering a single niche product or service category.  By creating this type of marketplace an etailer can get the undivided attention of the target audience and create a brand value in the given category. Multi-vendor Ecommerce marketplaces for beauty products, health and fitness, apparels etc come under this category.

  • Horizontal Marketplace

This setup can be used for B2B or B2C model where products and services from a variety of business verticals are sold on a single platform by multiple sellers. This setup is the most common and also the most popular form of an online marketplace. Such online shopping hubs usually enjoy very good traffic as they have something for every buyer.

  • Service Aggregation Marketplaces (B2C)

This marketplace setup has gained much popularity of late thanks to the popular food delivery and entertainment show booking platforms. Under this multi-vendor setup, various vendors come together on a single platform to offer products and services to a wider customer base. The business owner earns by commissions and the vendors are able to reach a wider audience base.

Why Online Stores Should Consider the Marketplace Model

The multi-vendor ecommerce model has obvious advantages over a regular store. This set-up is more complex than an online store but if powered by the right ecommerce platform it offers an easy and flexible way of managing products and inventory. The whole setup also cuts the cost for the vendors as well as the store owners by distinctly dividing the roles and responsibilities.

The etailer can easily offer a wider product range to customers without having to invest in inventory. They also get freedom from the responsibility of sourcing, stocking and delivering the products to the customers. All these activities are managed by the vendors. The vendors instantly benefit from the brand value of the marketplace and get exposure to higher traffic without any investment in the developmental cost.

A multi-vendor marketplace virtually sets up multiple smaller shops within the shop thus engaging the customers in on-site comparisons between vendors which prevents them from abandoning the cart and moving on to a competitor website. Additionally, the store owner earns a fixed or variable commission on each order. The model is highly scalable and offers a better chance at success than a regular online store.

How to start a Multi-Vendor Ecommerce Website

So, the undisputed advantages of the marketplace setup are tempting, aren't they? Are you convinced to upgrade your website and convert it into a multi-seller ecommerce store?

Good decision indeed! But how do you plan to achieve this?

There are obviously two ways to go about it. Either build the whole set up from scratch or opt for a tested turnkey marketplace solution. While building it from scratch can be time, resource and cost intensive a turnkey solution might be rigid and not give you the flexibility to tweak the platform according to your requirements.

So what is the solution to this Catch 22 scenario?

Can you find a seamless, robust and reliable multi-vendor solution that enables you to roll-out your marketplace in a hassle-free manner?

How to identify the right multi-seller ecommerce platform for your business

What if you can combine the best of the two approaches where you get a turnkey solution that is easy to be customized and allows you to make changes according to your unique requirements? You need a platform that has been designed to accommodate the various use cases and give you a hassle-free solution that frees your time to focus on business rather than the development aspects.

StoreHippo multi-vendor ecommerce solution has been designed with this approach and offers you seven advantages that ensure your business growth. Its multi-seller feature can be implemented easily and has a very short go to market time. The solution has been tested in real-time with live and successful projects across business verticals using different business models.


Multi-seller marketplace allows etailers to capture a bigger market and thus earn better ROI. This is a proven model that is popular with the online shoppers who enjoy the variety of products and competitive advantage offered on a single platform.

Need to check the functionality live before you roll out your own marketplace? Book a demo and one of our representatives will take you through the platform and its advantages.

Leave A Comment

Thanks for this informative blog!

By: phpscriptsmall
Feb 09, 2021   Reply

Replies :
"Hi, thank you for appreciating our blog on Multi-Vendor Marketplace. For more Multi-Vendor Marketplace related information, keep checking StoreHippo blog." StoreHippo Team - Feb 10, 2021

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