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Why and How to Choose Multi Vendor eCommerce Marketplace for your Business

multi-vendor ecommerce business

The eCommerce marketplace or eCommerce marketing is a place that encourages multiple vendors, shops or a person to sell their products with a strategic plan. The marketplace owner has to draw customers and the prepared transactions, while third party vendors will deal with the manufacturing and shipping process. Through a simple portal; Online Shopping Multi-Vendor Marketplace improves the production method where the businesses sell their products directly to the customers, therefore avoiding the immovable process of stocks holding. This type of supply chain management is so-called the “Dropshipping” method.

A lot of changes have occurred in the industry of Indian eCommerce since its origin in 1997. These days, Indian e-commerce has grown itself in multiple fields. The prediction came true that the growth of eCommerce industry reached $16 billion at the end of the year 2015. The case is that all the significant changes in the business took place over a span of the last five years.

Build your Multi Vendor Marketplace Today

Multi-Vendor Marketplace Business Model:

Companies like Amazon, Flipkart, eBay run a successful marketplace eCommerce business model. This multi-vendor business model plan proved itself and gained the most efficient and attractive name in web eCommerce. A multi-seller module promotes sales for third-party vendors by letting them sell products all in one online marketplace. The entire marketplace works on the same software base, allowing all vendors to share their different goods on a single website. Concerning revenue, these businesses take a percentage of the sales on any product which is sold across its platform.
The entire marketplace works on the same software base, allowing all vendors to share their different goods on a single website. Concerning revenue, these businesses take a percentage of the sales on any product which is sold across its platform.

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Benefits of Marketplace eCommerce:

With a standard multi-vendor eCommerce platform solution in place, marketplace eCommerce can help all parties in some ways:

Business operator


  • A marketplace module lets the business operator take a commission on things that vendors sell. It can either be in place of or additionally the products of the marketplace, raising profit chances.
  • A multi-vendor marketplace lets the business or platform operators collect a commission on the goods that the vendors sell. So, it grows the earning profits.
  • eCommerce marketplaces offer a direct buying process as factors like the availability of the stock, and the costs of the product are all open on a particular platform in an open atmosphere.
  • It provides better chances for suppliers and purchasers to build a new business relationship within and even beyond their supply chain.
  • Time limitations for selling across geographies is reduced due to the online marketplace software which runs round the clock.



  • Smaller stores don’t depend on the marketing capacity or the budget to build their multi-vendor eCommerce website, and software can further help from joining a marketplace. By following themselves with a bigger and known business, these stores can get clarity and, in some cases, use the shipping options of the eCommerce marketplace.
  • Smaller stores or vendors who aren’t confident about building their eCommerce marketplace platform website or require to decrease their marketing values can join themselves with these huge businesses and get clarity through their fulfillment options.
  • Normal exchange of prices between the old and the new vendors is possible through improving and keeping- uniformity.
  • The multi-vendor eCommerce platform plays like a new sales channel to market and sells their goods/products.
  • Allows overseas sales by offering chances to trade in the international eCommerce marketplace.



  • e-Marketplace users profit from seeing all options on a particular website and are enabled to get the highest quality product or most moderate price.
  • The customers get a full kind of opportunities to compare products than on a particular website. So it encourages them to find the fairest cost for the best quality product.
  • Real time updated data on the cost and availability of products makes it simpler for the customers to get the best deal.
  • The buyers can search for best vendors and develop a trading partnership by having an exclusive deal with them.


Also Read: Why to Choose EWDC for Multi-store eCommerce Software

Implement Marketplace Multi-vendor eCommerce:

Before deciding to execute multi-vendor eCommerce marketplace, your business will require the following:

  • Payment Options

How will vendors collect payment, and through which platform?

  • Commission Fee

How will you get paid from vendors for trading in your marketplace, i.e., how will your business make an earning?

  • Fulfillment/Shipping

Is the seller or the marketplace responsible for the product fulfillment, and how will you organize the various options of shipping?

  • Liability

How will you assure that customers pay for buying and that vendors produce goods that meet consumer needs?
Once decisions are made on these points and more, you’ll be in need of an excellent eCommerce software solution to reach your goals.

A standard marketplace eCommerce requires, at least these features:

Simple registration/vendors listing –
Third-party vendors should know how to join and build their product listings soon. If the sellers find it difficult to list products, they’ll go someplace. Besides, they want their profile page to manifest those listings.

Fast search functionality –
Search is more significant for multi-seller marketplaces than eCommerce. Consumers have to find what they require in a sea of third-party products (think how ThemeForest gets such crowded search!).

Simple reviews –
Due to having many sellers, buyers have to assess vendors and products fast so that sellers can build a prominence.

Digital vs. Physical –
A few multi-vendor marketplaces are restricted to digital or physical goods. You have to choose the right option for your goals.

Able to collect commission fee –
As you own a marketplace, you have to make income by charging a commission fee. Your platform makes it simple for you to manage payments, so you don’t get confused.

Cost –
There are a few notable differences in price for the multi-vendor marketplace (for Magento, WordPress and others), so you have to measure the cost of the platform and its features with care when selecting one.

Why Choose EWDC’s Multi-Vendor eCommerce Marketplace Platform?

Picking a marketplace eCommerce doesn’t mean; you can get the highest-rated website and go for it. You require a platform that provides your essentials and enables customizations on your business market flow. Your decision will be easier as EWDC has all the best-in-class features for your eCommerce marketplace to flourish with sales!

Under the cap, our Magento marketplace multi-vendor script has the most feature-rich shopping cart platform that means your website will be highly functional and transforms your online store into a B2B and B2C marketplace. EWDC helps startups who want to make use of an array of benefits at best pricing. You will get a total control and administration of vendors, products, orders as well as reporting. If you are driving your store on marketplaces like Amazon, Flipkart or Snapdeal, transforming your shop into Magento multi-vendor marketplace assists you to gain a lot in commissions.
For further information about creating your online retail marketplace in general, keep in touch with EWDC. We are India’s leading eCommerce solution specialists, and we are glad to help you ever! Give us a call at +91 9884203777, and we’ll direct you on the right path.


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