Multi-Vendor eCommerce Marketplace Website
E-commerce has occupied a large share of shopping at present. The multi-vendor marketplace provides new strategies to improve the sales of the merchants, whole sellers, retailers, etc. It paves a way to sell the products both nationally and globally.
With lag in the resources, some merchants may not take the risk to compete with the fellow competitors and switch over the entire business into the centralized multi-vendor online marketplace where they may sell without any disruption. On the other side, some merchants are readily willing to face the competition of the highly potential competitors with huge investment. The third category of the merchants is those who are very keen on managing and cobbling together their business by building their own online marketplace.
As you have landed to this article, I can associate yourself to the third category. Congratulations on your fierce ambition which you possess. In quick succession, you will learn how to effectively launch your multi-vendor marketplace.
What is Multi-vendor Marketplace Model?
The multi-vendor marketplace is a website which provides offering from many suppliers. You must have come across different retailers and manufacturers sell their product in portals such as Amazon, Flipkart, Snapdeal, eBay, etc. This type of sale management system is termed as Multi-vendor marketplace.
To build the Multi-vendor marketplace, you need to create and launch the website where the sellers can display their products after creating their own profile and getting through the initial screening from the marketplace operator. To achieve win-win cooperation, the multi-vendor operator project the seller’s products on their market place and manages all the transactions which happen between the consumers and the sellers.
For a transaction made, the marketplace operator receives a percentile of the amount as a commission. This provides a paramount way for niche marketers (marketers who focus on a particular product).
In a nutshell, the multi-vendor marketplace will definitely unite the suppliers and leads to income generation for both the side.
For any business you start, there are challenges you need to face and addressed. know about the challenges before building your own market place just to overcome the flaws
Customer Satisfaction should be the major mantra when we want to build any marketplace. Any dissatisfaction in the service will affect the name of the online marketplace and not the seller directly.
So, it is always better to create an environment where both the buyer and seller are responsible for the growth of the marketplace. Any issues faced by the customer should ne be rectified immediately in order to stabilize their name.
Online marketplace purely deals on the demand and supply gap. The buyer creates the demand and the seller creates the supply.
For an online marketplace, both the buyer as well as the seller are the customers. If there is more demand for a product and the supply is less from the seller, obviously, the customer becomes dissatisfied.
For an instance, consider there is more demand for Xiaomi phone and it is always unavailable on your site, you may lose your buyer.
Out of all the other challenges, this is the major one to be noted. Because customer retention comes as the first priority when we build our online marketplace
“If the buyers find the quality of the product low or delayed shipping or poor return policy, they will not remember the seller instead they tend to remember only the online marketplace brand name (Ex: Alibaba.com). “
You can make your customer not forget your online market place name and shop frequently by providing them with discounts, coupons, and big deals.
As the products are not physically present, the buyers could be fishy about receiving a wrong or damaged product. Recognizing the scammers amidst the sellers is a crucial task but we need to find them before they go on board.
Provide a smart contract for the sellers and buyers before they start their business on your online marketplace to overcome the trust issue. The details of the product, transaction details, and all other data are stored on the Escrow account by smart contract.
The pro here is that there is no centralized authority to control the data and take the decision which is not favorable for both the parties.
Shipping and logistics are hectic in any online business.
In order to keep your customers in hand and to leverage the best shipping possible, you need to take care of the cross border logistics issue.
Just imagine what happens if the consumers buy different products from different sellers who are located in different countries?
The different marketplace models.
- The marketplace which has independent vendors which sell and delivers the products to overseas countries.
- Marketplace with their own warehouse in that target countries to ship more efficiently.
- The marketplace which has the warehouse in the domestic country and ships overseas.
Whatsoever the model is, the online marketplace should ensure the product shipping and should also design the return policy for each product.
Your online marketplace should resolve the existing issue and provide a new experience to the consumer who uses the website
· Your online marketplace should provide the sellers with economic benefits.
· Have an eye on an average number of times your buyer reaches your marketplace to purchase within a specified period.
· Make sure pester free access for vendors.
· Use modern and user-friendly technology to build the marketplace.
· You (the marketplace) should manage all the transactions for hassle-free payments between you and the vendor.
How To Launch The Successful Multi-Vendor Marketplace?
Buckle up to learn the steps to launch a successful multi-vendor marketplace.
Start with a Particular Niche
Don’t imagine to build another Flipkart within a few months.
Have patience and narrow your focus to a particular quality product which is coined as a niche market. Discover the particular niche and work on it to make the target audience understand about your marketplace. Eventually, you may see your marketplace reaching new heights.
Initially, Amazon focused on selling books. The first book sold was “fluid concepts and creative analogies” in 1995. Now, you can’t even imagine their tremendous growth in the field of e-commerce by expanding their business using multi-vendor marketplace.
Perform Extensive Research
This research is to know more about the customers who purchase from the multi-vendor marketplace. Analyze their needs at present and collect the statistical data of the previous sales to know them better.
“Amazon usually researches in accordance with the age group. The shoppers in the Amazon are mostly categorized between 18 to 44.”
This categorization facilitates to know the requirements of the potential buyers in-depth and sell the products which benefit the mentioned age group to improvise the sales.
Install a Forceful Server
You have planned to launch a multi-vendor marketplace. It signifies that there may be thousands of customers from different geographical region.
So, plan to deploy your server which is powerful enough to take care of the traffic and bandwidth.
Acquire help from Social Media
Facebook, Twitter, Instagram, Pinterest, YouTube and, other social media are not only for communication. You can use these platform to advertise about your multi-vendor marketplace presence and awareness.
Promote your Multi-vendor Marketplace and Boost the Traffic Influx
When you say promoting on the internet, there are umpteen ways to do. But, how can you promote your marketplace?
Apparently, it will take time to get reach the customers. Create your story for the marketplace before promoting it. Tell how your product is different from the competitors and how it is going to make their lives trouble-free.
Search engine optimization plays a crucial role in ranking your website. Your online marketplace should be optimized in such a way that it should be in top-notch in ranking. Numerous multi vendor shopping cart platforms have built-in tools that lend a hand in improvising the eCommerce SEO.
When you launch a multi-vendor marketplace, your first motto should be reaching the customers from all the ends. The easiest way to reach them directly is through Paid Ads like Google Ads. Buyer halts on to your marketplace while searching for a particular product since your ad has popped out in the search result.
Collect the email lists of the buyers before they make a purchase. The main motive is to retain the existing customers and to attract newer ones. Are you wondering that how can you make them turn back and look your marketplace Amodt the busy schedule?
Yes, you have an option via sending emails about the offers, interesting articles, blogs and, flash sale if you start any. No one hates offers and discounts.
There are modern email marketing tools which smooth the progress of segmenting the consumers based on the last purchase made, demographics, frequent activities etc. So, promote via email.
When you start working on the above-explained strategies, there is no doubt that the customers will land on to your online marketplace which leads to profit for either party.
Must have Features for the Successful e-Commerce Marketplace
To project yourself unique amidst the competitors, you must have certain attractive features which your competitors don’t have.
- Create a separate dashboard for each vendor where they can
- Add their products
- Mention their discounts if any
- Give a note about the shipping methods
- Obtaining a sales report
- Get notifications on the low stock.
- Should be able to add multiple sellers easily.
Should have a separate administration panel for each seller.
- Automatic fragmentation of orders for different sellers.
- Have an eye on the products sold by sellers.
- Marketplace operator should control which sellers and products to approve.
- Setup commission rules for different behavior e.g. when a product is sold or added.
- Handle seller transactions for sellers and engender invoices to sellers.
- Restrict sellers from updating or modifying profile or product data.
- Should have an option to get notified when a seller is added.
- For products uploaded by admin, set the default seller option.
- Separate dashboard for buyers with orders, shipments and, previous history.
- Registration portal should be user-friendly.
- Have several payment options on your online marketplace to amplify your checkout page conversion list. Have a secured gateway
- for the transaction made by the buyer.
- Rating and reviews should be dealt with the customers in your marketplace. It helps other customers to know about the products and quality.
- Place high-quality photographs and videos in the catalog for a better view of the product for the customers.
- FAQ (Frequently Asked Questions) section should be created and answered in order to assist the customers to know more about the products, terms, and conditions, return and refund, etc.
How ZielCommerce Can Help?
How we are found to be unique?
- ZielCommerce’ multi-vendor marketplace is a one-stop marketplace solution with huge feasible features to streamline your business presence in the community of e-commerce.
- It facilitates the vendors to efficiently sell and handle the products by providing abundant functionalities.
- The entire process will be under the control of the ZielCommerce which provides seamless security for the vendors.
- You can enjoy the freedom of using the Marketplace by the way you want with add-ons.
ZielCommerce guarantees 100% customization. If you think that you lag in any marketplace functionality, we can help you to customize the extension you need depending on your business requirements.
The ZielCommerce aids to set up a different commission rate for different vendors depending on the product group, product type, and the vendor category.
The vendors need to register on to the multi-vendor marketplace initially. After succesfiul registration, the vendors can add their product. Once the products are added, the marketplace admin will validate the product for the approval. If it is approved, it will get reflected in the marketplace.
The orders that are placed by the buyers can be invoiced, shipped and if a refund is initiated, it can be managed through the Vendor Panel.
There is no doubt that any globalized business needs multi-currency and multi-lingual support depending on the default demography they choose. It provides multiple payment methods for a transaction. The ZielCommerce provides this excellent feature to make the customers from different countries shop hassle-free.
You can experience a dedicated section to manage all the transaction for both the vendor and the Ziel Admin. So, the security threat is effectively discarded. The ZielCommerce’ multi-vendor marketplace helps to enable shipping charges if applicable for different products and buyers.
You can reach a very good ranking for your store with the help of SEO optimization feature. It’s proven that 9 out of 10 people using the internet will not go beyond the first page of Google’s organic search results. So, better optimization for your website is mandatory to enhance the visibility of your store and to increase the traffic rate.
You can view the products which went Out of Stock, Sold Products, number of views of the products from the buyers, Sales Report and the transaction Report from the vendor panel.
The customers can easily rate the product and write feedback for the product purchased from the vendor based on the quality, shipping and, price with the help of ZielCommerce.