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.
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.