Top 5 benefits for businesses to build a multi-vendor marketplace website

Top 5 benefits for businesses to build a multi-vendor marketplace website

According to the e-marketer, “The global eCommerce market is expected to reach $5.55 trillion by the end of 2022 “.

Going back two years ago, only 17.8% of sales were made from online purchases. And by the time the number is expected to reach 21% more in 2022, that’s around a 17.9% increase in eCommerce marketplace development share over two years.

Sounds staggering, isn’t it!

And the growth is expected to continue by reaching around 25% by 2025 – which is approximately 6.7% growth in just five years.

The above statistics clearly state how the demand for online marketplace website development services has increased over a few years, and the trend is surely going to boom, inviting more businesses to accelerate their sales funnel through an online marketplace.

So, if your business is looking forward to amping up its game, this would be the best time to invest in the right technology stack and build a multivendor marketplace website.

Building a multivendor marketplace have a lot to offer to customers and quenching the increasing demand of consumers with the constant evolution of online shopping.

But why a multi-vendor marketplace?

The concept of a multi-vendor marketplace website has leveraged benefits to innumerable manufacturers, wholesalers, and retailers in selling more products to reach a wider audience base. This is the platform that helps sellers to create their profiles and add unlimited product catalogs. So, if you’re looking to spread your business to all parts of the world, building a scalable multi-vendor marketplace that is easily customizable is highly recommended.

Do all industries have to adopt this technology?

Global countries like the UK have around 64 million people, 82% of them are internet users. Do you know, online sales recorded in the UK were 157 billion euros in 2015? So, a business must adopt a new strategy and implement solutions to capitalize on such key channels.

So, if your business is planning for substantial growth, you need to tweak your strategy a bit. If you fail to adapt and implement new trends in technology, you’ll miss out on many key opportunities to capture the market’s attention. On the other hand, staying loyal to the traditional approach and neglecting disruptive technologies like eBay or Amazon will impact the sales figures, and ultimately the company’s future is at stake.

So, if your business wants to climb the success ladder, embracing the latest trends and technology is inevitable.

How does a business benefit from building a multi-vendor marketplace website?

1. More Products ~ More Customers A multi-vendor marketplace website acts as a host for a wide range of sellers to register and sell different items. With this, customers get the convenience to shop for all their needs in one place.

And this attracts a good number of customers to the marketplace that sells multiple items except the one selling a single type of item. At the same time,

vendors are attracted to the marketplace websites that leverage easy online setup and a vast pool of customers to sell their products to.

For the above reasons, a multivendor marketplace website development is a lucrative option for a business to consider.

2. Easy Inventory Management For an eCommerce startup company, the warehouse and human resource management cost is a challenging task. But with a multi-vendor marketplace website, each vendor is responsible for managing and keeping his goods and inventory, which reduces the financial burden of the startups in the initial stages. They can purely focus on website improvements and scaling their business with more focus and efficiency.

3. Low operation cost When designing a multi-vendor marketplace website, there’s no need to invest your time and resources in managing logistics and inventory. All these responsibilities are on the shoulders of the sellers operating the marketplace.

This way, you can simply focus on establishing and promoting your business on social media while scaling its operation at a global level through the website. This also means the team size is gradually smaller, which further brings down the operational cost.

4. Automates Process When considering parameters like logistics, product additions and upgrades, pricing, inventories, and multiple details to run an eCommerce store, huge efforts are involved. However, if you’ve owned a multi-vendor store, it won’t create such chaos to manage everything. The multivendor website allows sellers and vendors to manage necessary tasks seamlessly. And this creates a win-win situation for business owners by automating tasks and reducing manual input.

5. Boost in sales Because of a large variety of products and a large number of customers, marketplaces can make considerable sales compared to the ones selling specialized types of goods. As a result, they can earn a commission on each sale made by vendors (the percentage they’re free to decide on their o wn).

The higher the number of sellers, the higher the sales, and thus the commission income earned would be much higher for the marketplace.

CONCLUSION: A multivendor eCommerce marketplace development requires a superior technology stack and considerable investment to start the business at the right chord. And that’s also a reason why many entrepreneurs shy away from dipping deep inside the marketplace pond.

However, if you’re planning to start your online marketplace website that serves a majority of the customers, Darkbears is the best place to get your customized marketplace website developed.

All you need to do is just drop us your idea, and our expert will get back to you with a detailed plan.