The ecommerce industry has made a remarkable progress by helping the customers in fulfilling their needs efficiently. However, with the increasing number of ecommerce retailers, the competition in the market has increased. Thanks to the development of technology, starting an ecommerce store becomes an easy task for the entrepreneurs who wish to enter the online retailing world.
But how to start your own online store?
You can either choose to build an online store for featuring limited products or choose to create a multi-vendor ecommerce store for higher ROI with the help of a huge variety of products.
The second option sounds more appealing which offers a better product choice to the target audience easily.
Let's start with how a marketplace works.
A multi-vendor ecommerce store allows the vendors to manage their orders using a separate dashboard provided for them. All they need to do is list their products and start selling instantly. All the integrations and customizations are provided by the marketplace which saves extra efforts and time.
Now let's see how building a multi-vendor ecommerce store is better than having an individual online store. Here is a list of the top benefits of having a marketplace
1. Better ROI- Generating a higher return on investment with the help of a specific set of products is always difficult as compared to doing so using a multi-vendor marketplace. Multi-vendor ecommerce stores have great potential of generating high ROI because of the variety of products and competitive pricing offered by several registered vendors. This is helpful for attracting customers who are looking for certain products and hence making a purchase.
2. No trouble with inventory management- Inventory management can be considered as one of the largest pain for an ecommerce retailer. With a marketplace setup the owner need not maintain an inventory. Multiple warehouses are maintained by individual sellers in multi-vendor ecommerce stores scenario. Along with this, there is a number of delivery partners involved in the supply chain. Here is delivery goods to customers can be done in a quick manner as it is not depended on a single warehouse.
3. Winning formula for owners, vendors, and customers- Marketplaces help the business owner in earning profits from the commission applied on products listed by the vendors. On the other hand, the vendors can directly earn a profit by selling their products at a multi-vendor ecommerce store which needs the least management from their end. At the end when it comes to customers, a huge range of products convince them to shop more and return to the store.
With all the plus points mentioned, choosing a marketplace can always be a wise option.