The boost of e-commerce marketplaces since the last decade is phenomenal. The change in the way businesses doing commerce has totally transformed the shopping experience of buyers. Different than standalone e-commerce platform, e-Commerce multi-vendor marketplace is the place which offers multiple vendors a platform to sell the multiple products and brands at a single place, allowing customers to access a variety of products and services from a single place rather than going to a different websites to accomplish all needs.
Current Industry Trends Sales through online multivendor marketplace software are anticipated to reach around $4.5 Trillion by 2021. That’s nearly a threefold lift in online revenue. Industries if you consider playing a crucial role in the sector are Apparel, Electronics, Home appliances, Automobile, Food, grocery and restaurant, Fashion, beauty and personal products, Mobile and technology devices, Financial services and lot many others. Looking at the numbers, Consumer electronics and fashion apparels are on top with 65% and 64 % consumer choosing to buy these categories of products respectively. So, with higher consumer acceptance and growing industry, entrepreneurs are striving to get into the field. There are abundant factors that are pinching entrepreneurs to go for Marketplace and not for the stand alone eCommerce store. Driving factors to go for marketplace against the standalone eCommerce store When Multi-vendor Marketplace Solutions like Amazon, ebay, Alibaba, etsy etc. are driving the marketplace industry with its abundant product inventories and excellent support and sales services -entices novice etailers to consider the change. There are certain hindrances for standalone eCommerce stores to grow irrespective of the efforts, investment and resources they put. Thus, to grow e-commerce marketplace is the key for success considering the points below. Inventory Management To become a big giant like Amazon one needs to have a huge amount of product inventory and variety of products which is rarely possible by a standalone ecommerce business. They need to make huge amount of investment in all the product lines and verticals. Other than the investment in products, they need to manage the products on software, minute technical details management etc. tough to manage. On the other hand, if the multiple standalone sites converge and do the business together, it has much more potential to grow and fulfill the need of customers. It’s same as working either individually or in teams. In case of multi-vendor marketplace, admin has to manage the vendors, technical task and their own products if any. Vendors do the product and inventory management. When the multiple vendors come together with their own brands of products, they won’t have to face the challenge of inventory shortage. Market Visibility With the huge variety of products, customers would like to come to your store considering the need it fulfills. Multiple sellers from the different geographies promote the brand well and this ultimately increases the market reach of the marketplace. For an individual ecommerce player it takes time and requires lots of investment in marketing to build the brand, and maintain customer service that multi-seller marketplace has the capacity to provide. Operating Cost Marketplace owners have to build single platform only with huge capacity rather than building multiple solution for each business owner in case of a standalone site. It is tedious, time consuming, requires almost the same cost to build up the asset just like marketplace and on top of that the management with the single hand becomes tough task. Marketplaces with single platform reduces the development cost for each vendors, they simply can register and sell their products. They don’t have to worry about the development process or how the other things would be managed. Entrepreneurs get the commission for allowing vendors to sell on their platform and earn great with the solution it offers. Where to start with? The simple it looks like not actually the case. Many start-ups have failed due to lack of scalability. You’ll have to consider the market needs, its future requirement, current market trends and future trends presumption etc. With the very short span vision, you may grow but that may be seasonal and once the period is over you’ll lose everything. So, it is important to determine the business plan, the area where you wanted to play your sots and what are alternative plans if the one won’t go the way it was decided. Decide the niche area, review the demand or create the demand and sell most. The businesses started with the great backbone support and planning goes long, same the case with this sector. Decide your area of target and then move ahead. There are many special product or service targeted ecommerce marketplace platforms with its unique offerings doing great in the market. E.g. Fiverr Not only the B2C sector but also B2B model doing great in the industry. It’s earning even double the revenue of what etailers are making. With the planned move, go and grab the new potentials. To Conclude, Ecommerce market is rising day-by-day with its satisfactory results. To top with ease and satisfy the clients well, to build ecommerce multi-vendor marketplace is the only key to get the success by taking its advantages into consideration.
1 Comment
30/6/2021 08:21:30 pm
This model is a virtual goldmine for entrepreneurs as it ensures better business than a regular online store without any investment in inventory.
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AuthorI am Audrey Zack. I have a very strong background in technology and development with a passion for creating innovative design and developing simple solutions to challenging problems. I believe in result oriented and innovative project skills with top tier strategy, experience and technology. Archives
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