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Ecommerce Insights - 1

Why Enterprise brands should consider the Multi Vendor Marketplace model

The online marketplace model has been a rage among enterprise brands thanks to the amazing success stories of popular marketplaces like Amazon, Alibaba Group etc. Offering a zero inventory model, multi vendor marketplace is the best fit for brands looking to digitize their sales channels by leveraging the strength of their vendor and distributor network. Multi vendor marketplaces are easy to scale up, help in penetrating new domestic and global markets and offer chances to create multiple revenue streams by monetizing vendor positioning, offering services and subscriptions to customers and more.

Top 5 Multi Vendor Marketplaces across the world

  • Amazon - As of 2022, it is estimated that Amazon makes over $638 million/day in revenue. This is close to $470 billion in revenue every yea

  • Taobao - The leading multi vendor marketplace website’s global GMV in 2021 was $635 billion

  • Walmart - The full-year 2022 revenue totalled $572.75 billion, a 2.4% increase from the $559.15 billion of 2021 fiscal

  • eBay - The annual revenue was $10.42B in 2021, higher by 17.16% as compared to 2020

  • Etsy - In 2021, Etsy-  the craft and vintage items online marketplace saw a 35% revenue growth as compared to 2020 and generated revenue worth $ 2.3 billion

Source: Statista, EcommerceDB

Global Online Marketplace growth trends

  • In 2021, online buyers spent $3.23 trillion on the top 100 multi vendor marketplaces

  • More than 150 million online buyers use Amazon’s marketplace app 

  • Online marketplaces registered an 18% growth in gross merchandise sales in 2020

  • In 2021, 42% of online purchases were done on marketplaces 

  • When buying online, 48% of online buyers prefer going straight to a multi vendor marketplace website

Source: Digital Commerce 360

A Multi vendor marketplace is an ecommerce website where the admin onboards multiple vendors to sell similar or different products and services to the customers under one brand name.
You can launch your online marketplace in a few days with StoreHippo’s cutting-edge turnkey marketplace ecommerce software.
A multi vendor marketplace has a more detailed set of features designed for the ecommerce set-up where multiple sellers sell on the same platform compared to a regular ecommerce store where the business owner is the only seller.
To build or create an online marketplace, you can either go for a custom-made set-up or use an existing marketplace builder like StoreHippo. Building a customized marketplace website is usually expensive and time-consuming. Turnkey marketplace builders that are easy to customize help in building tailor-made marketplace websites quickly and easily.
To choose the right multi vendor marketplace platform, you need to evaluate your options based on the technology, features, ease of use and flexibility for customizations being offered. Alternatively, you can ask for a demo before taking the final step.
The owner of the multi vendor marketplaces builds the platform, then invites and onboards multiple sellers. Each seller brings in their product catalogues which are then uploaded to the marketplace for the customers to shop from.
Yes, the customer can choose to order different products from different sellers in a single order. StoreHippo ecommerce platform creates multiple orders from a single order and assigns them to the respective sellers.