Multi Vendor Marketplace
Before getting started, let’s dive a little deeper and define the online marketplace platform more extensively rather than throwing big names. As we see from the term itself, the multi vendor marketplace allows multiple vendors to add and display their products on one eCommerce platform or website. In other words, it is just one site and diversity of products presented by the range of merchants. Each seller has his shop inside the system to add products to.
How to Make Profit With eCommerce Store
The online store owner can make earnings through:
- Subscription or membership fee. Vendors can host their products on your platform for a fixed price of a monthly subscription. So you make a profit by charging a subscription fee from the registered sellers.
- Commissions. This one is used by the eCommerce giants like Amazon and Alibaba. Using this model enables you to charge sellers a certain percentage commission from the product sold. Generally, it ranges from 5 to 20%.
- Payment Processing Charges. If you are assisting the vendors with payment operations, then you can establish a fee for using the payment processor.
- Logistics. Another additional source of revenue for you. Offering logistics and shipping services to vendors either yourself or through the third-party provider may bring you more profit in a way of shipping fees.
- Listing Fee. Charge sellers for listing their products on your website. A well-known eBay follows this model, allowing vendors to sell their products by taking a listing fee from them.
- Advertising. Use your platform as an ad panel. As online marketplaces boast the big amount of traffic, advertisers may consider your site as a good platform to place their commercials.
Are You Equipped Well
One of the most important steps is deciding what software to use. The process is becoming more complicated due to thousands of options available. We can create a long list of databases and CMS, but that won’t help unless you define your requirements.
Instead of listing software options, we suggest you write down criteria and features that are most important for you.
This could be:
- Pricing plans
- Level of customization
- Third-party integrations
- Customer support
- Speed and security
Design is Necessary
Design is the first thing your customers see. At this point, they intuitively feel and decide whether to stop by your website or not. Your objective here is to make them trust you and do it by amazing design and user-friendly interface.
The digital market will offer you thousands of all possible layouts and templates, it will attract you with “10 best eCommerce themes” headlines. Ignore it. And here is the reason why. Those 10 best themes were probably used by hundreds of other people, who like you desperately wanted to create something worthy. However, if you follow their example, you will be just one of the hundred and not among the best 10.