Why Multi Vendor Marketplace Model Is Good For Your Business

By | Dec 30, 2020 | 2 Comments | 878 views |
  • Why Multi Vendor Marketplace Model Is Good For Your Business

Been selling online for long? Thinking of ways to take up your business to new heights of success? Don’t want to invest too much upfront and yet gain a wider market reach?

How about trying out the multi vendor marketplace model!

Wonder why this very model and not any other?

Let’s do quick trends checks before we go further. Did you know that;

  • 95% of online shoppers have purchased from one of the marketplaces

  • 31% of ecommerce shoppers buying for the first time prefer to buy on online marketplaces

  • 54% online buyers say shopping on marketplaces changed the way they shop

Well, the writing on the wall is clear. Online buyers are increasingly gravitating towards multi vendor marketplaces. Want to know more about it? Wondering what makes this model such a hit? Let us check out!

Why Do Customers Prefer Buying On Multi Vendor Online Stores?

Well, the savvy online buyers need the best from their online purchase. And they want all the things they need at one place, lots of options, differential pricing, fast shipping and the assurance of a brand that can take care of their concerns.

And where do they get all of this together?

At popular online multi vendor marketplaces like Amazon, Alibaba, Flipkart, eBay etc. 

The stupendous success of these thriving marketplaces has redefined the online shopping experience of millions of customers. With the pandemic changing our buying habits forever, this business model has stood the test of time.

Nearly all online buyers have a couple of marketplace apps on their smartphones to help them negotiate the requirements of their daily lives. Be it BigBasket to deliver fresh fruits and vegetables, to OLA and Uber for daily travel or Amazon for buying almost anything! 

Don’t you think, you also need to offer a similar buying experience to your customers by turning your online store into a multi-seller website? 

You definitely should!

Table of Contents

Top Reasons To  Start Your Own Multi Vendor E-Commerce Store

Innovation is the key to success in any business. The multi-seller model has a number of benefits over a regular online store.  Here are some of them:

1. Sell A Variety Of Products:

You can add any number of vendors to your store who will have their own inventory. This means your store will come very close to the physical world marketplace where lots of vendors offer a huge variety of products to the customers. Conditioned by their experience on other marketplaces customers would come to your brand for a new experience and remain loyal if you offer them the best products and services.

2. Streamlined And Smooth Operations:

Running an online store effectively is all about streamlining operations to manage and deliver products in the fastest way. When you convert your online store into a multi vendor marketplace managing inventories, adding new products, providing product catalogue updates is all done by the individual vendors. This results in smooth and hassle-free operations and shifts the headache of managing it all to multiple players. You can just sit back and plan for more efficient processes and business expansion.

3. Less Expensive:

Having an online marketplace can drastically cut the cost of managing various teams needed for maintaining the inventory side of the business. You can just focus on your sales and customer support teams. This division of labour not only cuts down the costs but also results in greater efficiency and better quality of services on your multi vendor e-commerce store.

4. No Inventory Needed:

The most daunting task while starting an e-commerce venture is to set up a warehouse and hire and manage the human resources needed to manage it. This exercise can significantly increase the cost of running the business, especially in the early stages. With multi-seller functionality an online store can do away with this basic requirement as warehouse, inventory and related human resources is the responsibility of the vendors.

5. Additional Earning With Minimum Effort:

You can add different sellers to your multi vendor e-commerce store and charge different levels of commission from them. This helps you earn additional income with negligible effort. Every time a seller gets an order on your marketplace store you automatically get a percentage of profit as commission.

6. Lesser Responsibility, More Control:

The admin of an online marketplace has complete control and authority of choosing, allowing, restricting or rejecting any vendor. Once a vendor is listed on your multi vendor marketplace the onus of order fulfilment lies on the vendor. This frees the admin from many responsibilities while he can still check and help vendors with the fulfilment process. 

With so many advantages, you definitely want to go for this popular business model. Don't you?

Why Vendors Prefer Selling On Multi seller E-Commerce Platforms ?

Multi seller ecommerce solutions offer many benefits to the sellers and vendors as well. Some of them are:

  • Greater visibility and readymade high volume traffic of the marketplace

  • Saves marketing cost as the brand value of marketplace favours the vendors

  • Easy setup and cost-saving in as and need to set up online store from scratch

  • Advantage of accumulated knowledge and data from multi vendor marketplace helps to sell better

  • Flexibility to concentrate on profit-making with no setup worries

  • Technical aspect of managing stores completely taken care of by the marketplace owner

Which Industries And Services Can Benefit From The Marketplace Set Up?

Wondering whether your industry vertical is the right fit for the model? Lay your worries to rest as almost any industry verticals can benefit from a multi vendor e-commerce store model.

Let’s take a look at some scenarios where this type of business model is a perfect fit:

  • Food shop where multiple sellers can be added to offer various cuisines being prepared at individual kitchens.

  • Grocery chain with stores in different locations fulfilling area wise orders promptly

  • Service platform for doctors and medical professionals offering a panel of doctors and related services

  • Gifts and flowers business delivering orders across the globe with multiple sellers offering their services through the multi vendor marketplace.

  • Big franchise running different stores can add more stores to one common marketplace

  • Clothes, electronics, beauty products and almost any other similar e-commerce verticals

  • Various non-profit and social organizations can come together on a common platform and offer services for the betterment of society

How To Convert Your Online Store Into A Multi Vendor E-Commerce store?

Thanks to the turnkey marketplace solutions like StoreHippo, turning your online store into a marketplace is a simple 10 step process.

Here is what you need to do to build and start selling on your own multi seller online store:

Step 1: Schedule a free demo with StoreHippo and discuss how to migrate your online store to our platform. (If you are an existing StoreHippo customer you just need to choose the right plan and inform our support team who will guide you to convert your online store into a multi vendor marketplace).

Step 2: Pay for your subscription and migrate your online store to StoreHippo with assistance from our team.

Step 3: Choose a beautiful theme from our themes library for your storefront.

Step 4: Secure your multi vendor marketplace with FREE SSL offered by StoreHippo.

Step 5: Add multiple payment gateways to your multi seller site from our list of integrated payment solutions.

Step 6: Automate your shipping with integrated logistics solutions or manage your own fleet of delivery boys using our delivery boy management system.

Step 7: Build your marketplace app right from StoreHippo admin without any coding.

Step 8: Invite vendors to your business and let them add their products to your online marketplace

Step 9: Optimize your multi seller online store and use StoreHippo’s inbuilt marketing tools to market your business.

Step 10: Test your site and start earning commissions on every order!

How StoreHippo Helps You Gain A Competitive Edge With Your Multi Vendor Marketplace 

StoreHippo provides you with comprehensive multi-seller functionality to set up horizontal, vertical, service aggregators or any custom model of multi seller online stores. Built grounds-up on the mobile-first principle, all marketplaces built on StoreHippo are PWAs. This means your online store looks, feels and works like a marketplace app even when opened in a browser of any device. This helps you leverage m-commerce benefits and sell better.

StoreHippo’s inbuilt multi seller solution does not require any additional apps or plugins.

You get the following advantages by using our comprehensive multi-seller solution:

  • Create your brand value by offering the best products and multiple sellers

  • Multiply profits by earning commission from multiple sellers

  • Easily manage vendors with simple and separate vendor panel

  • Set separate commission levels for vendors and their products

  • Complete autonomy and control in selecting and moderating vendor and product profiles

  • One-click easy accounting and management of seller ledgers on your multi vendor e-commerce store

  • Instant notification when a seller is added, edits, sells or uploads new products

  • Adaptive payments to divide payments between multiple sellers

  • Inbuilt discount engine to add multi-level discounts


Well, it is clear that the multi vendor marketplace model is a virtual goldmine with a host of benefits for your business. What's even better is that you can reach new markets just by onboarding new vendors from different locations. You get freedom from maintaining inventory and can offer a plethora of products to attract more customers. A marketplace set up is bound to take your online business many notches higher.

All you need to get started on your exciting journey is a comprehensive multi vendor solution like StoreHippo. So what’s the wait for? Begin exploring the amazing features by starting your 14-day free trial right away!

Leave A Comment


Best article for ecommerce business.

By: Sandeep Yadav
Oct 04, 2021   Reply

Replies :
"We are happy that you're pleased with the results of multi vendor marketplace features. If there's anything else we can do to help, please let us know. " StoreHippo Team - Oct 06, 2021

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thanx for sharing this useful info.

By: Dai Software
Sep 13, 2021   Reply

Replies :
"Hi, thank you for appreciating our article on why multi vendor marketplace is good for businesses. For more ecommerce related information, keep checking updates on our StoreHippo blog." StoreHippo Team - Sep 14, 2021

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