Marketplace model of eCommerce provides a web platform to establish a digital commerce network which facilitates a healthy communication between sellers and the customers
Technology

How does a Multi-Vendor Marketplace Model Work?

  • Jitendra Sharma
  • 10th Jan 2022

What is a Multi-Vendor marketplace?

multi vendor ecommerce

Multi-vendor marketplace refers to an online marketplace business where multiple buyers and sellers initiate or conduct transactions. Multi vendor e commerce sites act as a digital middleman that connects both buyers and sellers on a common platform. With this, sellers can find buyers, scale their business, and manage it efficiently.

Some examples of best marketplace platforms are Amazon, Flipkart, Airbnb,  eBay, Paytm Mall, and Meesho.

 

How does a Multi-Vendor Marketplace Model Work

Marketplace model of eCommerce provides a web platform to establish a digital commerce network which facilitates a healthy communication between sellers and the customers

For example, the marketplace giants like Amazon, Flipkart, Airbnb, eBay, Paytm Mall, and Meesho with a handful of merchants.

So whenever an order has been placed on the website, it doesn’t mean the online marketplace owner owns the products. It means the order is passed to the seller of the product, and they fulfil the order placement from their side.

It reduces the friction between the marketplace owner and the buyers. The owner makes money by receiving a part commission on each transaction for the store owners in the multi-vendor marketplace.

 

Business benefits of Online marketplace business model

  • Ecommerce owners are now showing more interest in building online marketplaces because of their efficiency and commission earning. Here are some business benefits of the multi-vendor marketplace for eCommerce business model:
  • Powered by the world’s leading ecommerce platform — Opencart
  • Multi-vendor store with high-level security
  • Evolving with the latest industry trends
  • Responsive and Customizable ecommerce platform
  • Leaders in enterprise marketplace solutions
  • Marketing Capabilities
  • Robust report generation features

Free Download Multivendor

Documentation

Install

Demo_Multivendor

Author
Jitendra Sharma Owner of Letscms
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