HOW TO SET UP A MULTI-VENDOR MARKETPLACE IN A FEW STEPS?
How To Build Multi-vendor Marketplace in an easy way?
In this 21st century, eCommerce has been becoming a booming industry all over the world.
You can buy and sell almost everything at your doorstep with the magic of eCommerce. It has changed our lifestyles entirely because we don’t have to spend time and money on travel to the market.
Before actually starting to build a multivendor marketplace, it’s crucial to take some preparatory steps to determine the direction of your business to overcome challenges on your way. Let’s have a look at things you should deal with first.
Decide on the MVP feature set
To launch your marketplace fast, you should consider starting with a minimum viable product (MVP). An MVP has only those features that meet your customers’ basic needs. At the same time, it should work flawlessly and provide a great user experience.
During the MVP development, we recommend you reassess the platform functionality from the previous step, and make a shortlist of the must-have features, without which the platform will not work.
In these tutorials, I’ve come up with a beginner's guide to setting up a multivendor eCommerce website.
First of all, read on to find out the beginner guide including major factors with a detailed description of each and every point.
1. All about Domain Names
A short, and memorable domain name has always been the difference between creating a successful presence online and getting lost in cyberspace, with more than half a billion domain names in existence.
2. Choose your System carefully
At the starting time of a new business, you may be feeling a mixture of emotions such as excitement, confusion, apprehension, and impatience.
Coping with these circumstances, another crucial decision you have to make after choosing your domain name is the eCommerce platform that you should use to power your store.
3. Pick the Best Theme
Finding the perfect theme, or even selecting a designer who understands your goals, can eat up time you don’t have.
Have a look at our hand-picked WordPress theme.
4. Choose the appropriate plugin
Bazaar Multivendor Marketplace (bazaar Marketplace) is the best free front-end multi-vendor marketplace plugin on WordPress, powered by WooCommerce. It helps you to build your own dream marketplace like Amazon, eBay, Etsy, and Flipkart within minutes, with minimal setup.
There have available plugins;
Try out once time:- http://codexinfra.com/bazaar
5. Enhance the Security of your site
WordPress itself is built with a stable and secure framework, but this doesn’t make it immune from hackers.
6. Optimized your site for Search engine (SEO)
Search engines have become increasingly sophisticated day by day, but they still can’t see and understand a web page the same way a human can.
That is why SEO become the most important aspect that is making a website accessible to both search engines and users to understand the site.
7. Speed up your Site
Therefore, when a visitor visits your site for the first time; you only have a few seconds to capture their attention to convince them to hang around.
If your site takes too long to load, most people are gone, lost before you even had a chance. So to retain your visitors and increase your eCommerce sales, you must speed up your website. Otherwise, you will not only lose your sales but also your reputation, and your brand image.
8. Keep attention on Online marketing
Online marketing enables store owners to open their business around the clock without worrying about store opening hours or overtime payments for workers.
Consumers can browse an online store at any time and place orders when it is convenient for them. Offering the products on the internet is also convenient for them.
9. Back up your Site
Suppose you have a middle-sized website with lots of content and regular visitors. you have regular consumers and regular activity on your site.
In the course of time, the site is growing, content renewal has been attracting new visitors, and the site has been established continuous communication with them every day.
10. Multiple payment Systems
Multiple payment systems are one of the most important things you should consider when building your online business.
Presenting your customers with a variety of payment systems will ensure customer satisfaction from your store and also remove the probability of a consumer being lost.
By default Woocommerce provides some basic payment methods, these are directly Bank Transfer, Cheque Payment, Cash on delivery, and PayPal.
How Does a Multi-vendor Marketplace Work?
The Multi-vendor Marketplace is beneficial for the marketplace owner, vendor, and customers. The owner gets the commission upon every sale without worrying about product inventory and shipping, and the seller needs not worry about website maintenance and advertising aspects.
Benefits and Challenges of Multi-vendor Marketplace
When you consider online marketplaces, Amazon, Etsy, and Alibaba are probably the primary few names that come to mind. Interestingly, today’s number of hopes around the eCommerce business is the anticipation of success in the multi-vendor marketplace model.
In essence, the said model is an online marketplace platform where each seller can run their shop autonomously on one platform, while the platform owner takes care of various aspects of an eCommerce store like order processing, tracking, and payments.
According to research, marketplaces will account for almost thrice as compared single eCommerce stores by 2021.
Adding the benefits of multi-vendor eCommerce marketplaces:
- More products and hence more customers
A multi-vendor eCommerce marketplace typically plays host to a wide variety of sellers who sell different types of items. Customers thus have the convenience of shopping for different kinds of goods under one roof.
This attracts a more significant number of customers than if the marketplace were to sell only one type of good. At the same time, vendors are attracted to the multi-vendor eCommerce marketplace model as it provides them with a convenient online setup and a vast pool of customers to sell to.
2. No need to maintain inventory
An eCommerce start-up will likely not be able to afford the costs of maintaining a full warehouse of sellable goods. In a multi-vendor marketplace, however, each vendor is responsible for keeping his or her inventory.
That releases the start-up of considerable financial burden, which is significant in the initial stages, and they can focus instead on website improvements and on scaling up their business with focus and efficiency.
3. Lower operation costs
When opening a multi-vendor marketplace, there is no need to invest time and money in designing products, maintaining inventories, or managing logistics. All of those are the responsibility of the sellers operating in the marketplace.
The marketplace can thus focus on promoting its business through social media, scaling its operations to reach global customers, and website maintenance. This also means that they can work with a smaller team, which further brings down costs.
However, a multi-vendor eCommerce platform comes with its own set of operational challenges, including:
- Price competition
While a large number of sellers ensure a wide variety of options for the buyers, it also leads to substantial price competition as there are several substitutes for each product. This could lead to intense price competition among vendors to grab larger market shares. As a result, the commission that the marketplace earns on each sale goes down.
2. Quality maintenance
Different sellers offer products of varying quality levels, and the sheer number of sellers makes it impossible for the marketplace owner to do a quality check on every product. If there are too many vendors selling shoddy products, it could bring down the marketplace’s reputation in the eyes of the customers.
However, the problem can be addressed to some extent by having in place a customer rating system for each seller and removing the sellers whose ratings dip below a threshold level. Amazon has that option, wherein you can check the rating of the product and its seller right on the product page
3. Delivery management
While the vendors are responsible for the quality of their goods, the marketplace still needs to take care of deliveries. This requires efficient logistics in place to transport items safely and deliver them on time. Mainly, if the marketplace caters to multiple states or countries, managing these logistics can be a time-consuming and rather expensive task.
The problem can be eliminated with a dynamic e-storefront that allows the marketplace owner to track all deliveries from all sellers under a single roof.
Different types of Online Marketplaces
B2B- Business to the Business marketplace where the transactions of products and services are only happy between businesses.
Ex: Alibaba, Amazon, IndiaMart
B2C- Business to Customer marketplace where transactions of services and products take place between business and the customers. They mainly focus on marketing.
Ex: Starbucks, Spotify
C2C- Customer to Customer marketplace where products transactions happen between the customers. It mainly targets building a healthy relationship between the seller and the buyer to find each other.
Ex: OLX, Quikr
P2P- Peer to Peer marketplace establishes a connection between the users who offer products and services offline. Here the buyers and the sellers can directly communicate with each other.
Some other plugins are also available, you can visit :
1. Afiliado-WooCommerce affiliate manager prime
2. e-PDF-Pdf creator addon for elementor
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