Multi Vendor Stores- Analyzing their Benefits over eCommerce Shops

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The dynamics of online shopping is changing as eCommerce entrepreneurs are realizing that investing in multi vendor store is just the better deal. Ecommerce investors as well as business owners are favoring multi vendor systems – also referred as online marketplaces – over regular online stores because of vast range of advantages.

Let’s first quickly explain what multivendor websites are all about and then why they are becoming the first choice of people who want to enter in ecommerce business.

What is a multivendor website?

Every seller or merchant has a separate shop inside a multivendor system which he is free to run as he likes. The platform owner only bothers with order processing, tracking and payments where they are due.

multi-vendor

Also sometimes referred as virtual marketplace, multi vendor ecommerce websites shift the humungous task of maintaining inventories, logistics, product descriptions, and updates to individual sellers by giving them a system to manage it all as per their convenience and goals.
If you are looking for a multi vendor ecommerce system that can help you setup a store like eBay, Amazon or Etsy
Try FATbit’s multi vendor system

Popular ecommerce brands using multi vendor model

Some of the biggest ecommerce brands have evolved from the multi vendor ecommerce model. Most distinguished and globally known are;

1. Amazon

The largest online retailer doesn’t need an introduction. It started in 1994 as an online bookstore but diversified to sell vast range of products. The ecommerce giant follows the marketplace model.

Website – www.amazon.com

2. Etsy

The ecommerce store has caught the imagination of people who make products on small scale. The online marketplace also sells vintage items, supplies, and unique factory-manufactured products. No wonder people are searching for Etsy online marketplace script.

Website – www.etsy.com

3. Alibaba

The China based business-to-business portal is one of the biggest ecommerce players in the world. It is where wholesalers and resellers go to buy products in bulk and at discounted price. In year 2012, two portals owned by Alibaba Group managed $170 billion in sales, far more than Ebay and Amazon taken together.

Website – www.alibaba.com

www.flipkart.com is the most popular ecommerce brand in India and has recently shifted to the multi vendor model, is giving a hard time to international players like Ebay in creating a market in the second biggest economy in the world.

What is fueling the demand of online marketplace software?

Ecommerce enthusiasts have become more interested in virtual marketplace software rather than online shop builders. Below are the reasons for the marketplace shift;

1. Vast range of products

The products sold on a multi vendor store are featured by a number of vendors. Any ecommerce store that provides a huge variety of products is bound to easily generate traffic and sales. If Ebay and Etsy were to source all the products from one vendor, do you think they would have been able to generate as much sales as they do now?

2. It takes away half the headache

Taking care of logistics, inventories, product additions & upgrades, pricing and various other details that comes with running an online store require humungous efforts. Multi vendor store shifts these necessary evils to individual merchants. Because sellers have to take care of their own store only, it doesn’t remain an uphill task. So, this makes multivendor shopping cart a win-win business equation.

3. Lesser expenses

Because every seller will be managing his shop on their own, you don’t need to hire people to do it. Your team can spend more time on answering critical questions related to scaling and marketing. With an experienced development team by your side, you can drastically bring down website maintenance related expenses.

4. No need to maintain inventory

Warehousing and human resource related costs can break the back of any ecommerce startup. Starting a multi vendor store will not let that happen as sellers will take care of inventory related complications.
FATbit’s team can help you instantly setup a multivendor online store and generate traffic for itConsult FATbit’s Experts

Why merchants favor multi vendor ecommerce stores?

Merchants and businesses also find online marketplaces a better deal when it comes to sales and revenue generation. Below points are making online sellers favor virtual ecommerce systems;

1. Readymade traffic

Established multi vendor websites attract huge amount of traffic and sales opportunities. Creating an online store and investing in marketing will consume tens of thousands of dollars but you still wouldn’t be able to attract as much traffic. This way, setting up a shop on virtual marketplace is a better deal.

2. Suitable for sales minded merchants

Product manufacturers and sellers who are more concerned about making profits rather than creating a brand go for multi vendor ecommerce platforms.

3. Small setup costs

Creating a website to sell your products and then investing in advertising means spending thousands of dollars. Online marketplace leaders get you started in just few dollars per month and small selling fee. Check out Sell on Amazon page.

Also Read: How to Choose from the Various Ecommerce solutions

4. Flexibility

Merchants on multi vendor ecommerce platforms can manage product details, prices, and areas of delivery, make additions, and updates as per their convenience. This flexibility comes along with no requirement of technical knowledge.

Ecommerce entrepreneurs are more interested in starting virtual marketplaces because of added operational efficiencies and better margins. This justifies the growing online search for online marketplace scripts.

Launch advanced multivendor store with Yo!Kart

Multivendor store requires superior technology and considerable investment to make the right impression. This is also one reason entrepreneurs shy away from it. Yo!Kart is a software solution developed by FATbit Technologies to do away these limitations. Developed after extensive research, it promises:

  • Multivendor store with 3-layer security
  • Customizable and responsive platform
  • UX and conversion focused design
  • Optimized for search engines
  • Robust report generation features

Try demo and see how your Yo!Kart powered multivendor store will look like!

If you still have doubts about how a multi vendor ecommerce system can benefit you, reach out to Experts
Initiate a conversation

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Comments (5)
Clara

Hi,
That was a great stuff. I’m a newbie to multivendor shopping cart. This content is quite helpful for me.
Thanks
Clara

Rochelle George

Great Post! Thanx for sharing such an amazing blog.It is a transformation age of online shopping, which is changing day-by-day as eCommerce entrepreneurs realise that investing in multi-vendor eCommerce store is a better deal.