E-Commerce stores are getting transferred to multivendor Marketplace platforms. Every single store vendor by joining with any leading multivendor platform they can easily sell their products. Budding entrepreneurs find this method to be more cost effective as there is no need to invest to promote the store and also shipping and delivery will be taken care of the multivendor Marketplace platform. But most ambitious online entrepreneurs will come forward to move the business to the next level by building their own multivendor marketplace website. Although this process is quite a challenging one, you can get more returns and greater brand recognition. There are many prerequisite tips that need to be focused in order to run multi vendor marketplace software. Let us analyses them in detail.
Understand the target market
You may choose to own readymade multivendor software or to build them from scratch. But whatever option you select, you need to understand the target market before you start your Marketplace. Without proper Research and Analysis, you may face serious loss. You need to segment your target audience and by undergoing surveys you will know the pain points of users and you can come out with the solution through your Multivendor Marketplace. You are going to build a two-sided Marketplace that covers buyers and sellers so you need to understand both the problems and help them achieve their goals.
Choose a profitable business model
Revenue model will act as a pillar for the growth of any Marketplace platform. You may find solutions to support your users but at the same time your business needs a long run. No matter what your product or your brand is, you need to have a viable business model. Some of the commonly used revenue models for a multi-vendor Marketplace platform are listed below.
- Commission fee – in this model you can charge your sellers for each sale they make through your multivendor Marketplace platform. The percentage of commission is initially settled at the time of registration.
- Subscription fee– subscription based revenue model is one of the best models that supports in generating recurring revenues. A specific amount will be paid by vendors on a periodic basis that will help you to run your multivendor Marketplace website effectively.
- Listing fee– vendors will pay you for letting their products in your multivendor website space. Based on the product price and category you can fix the cost for listing.
Finalize the Marketplace features that are mandatory for your business
The next important aspect that needs special attention is setting up the features for your multivendor Marketplace software. Features should match the requirement of buyers, sellers and also the admin of the platform.
Must have vendors’ features
- Easy sign-up process– do not have complicated registration forms for vendors. Let vendors get registered in a simple way.
- Have an intuitive dashboard-let the vendors get a simple view of the products sold, revenue generated, and stock in hand and many more.
- Hassle-free order management– orders should be placed and delivered properly. If this process is taken care then you can easily retain vendors.
- Communicate with buyers– allow your sellers to communicate with their buyers through proper messaging systems also vendors should be able to check the reviews and ratings registered by buyers. This will help them to improve their quality and service.
Must have buyers’ features
- Intuitive user interface– focus more on UI and UX to retain your buyers. Make it more mobile friendly that will gain the attention of mobile users.
- Advanced search option– searching should be easy for buyers and they should find the product easily.
- Order management– buyers will have their own profile page and they will be able to check their order history. Also, they should have a wish list and add-to-cart feature.
- Multiple payment option– each buyer has his own payment reference some prefer net banking some on cash on delivery. Your multivendor Marketplace platform should provide multiple payment options.
Must have admin features
- Customization and scalability– these are default features for any multivendor Marketplace platform that are very essential when you expand your business.
- Mobile apps– the multivendor Marketplace platform should come along with the mobile app that will facilitate your sellers as well as buyers. You can get more audience when you own a mobile app.
- Reporting tools– your multivendor Marketplace software should provide clear analytics and reporting that will help you to understand how well your platform is performing.
Attracting vendors is very important for any multivendor Marketplace platform. More the vendors you have, the more revenue you can earn. To grab the attention of vendors you should provide offers like zero-subscription plans at least at initial stages. Keep monitoring their performance and provide additional support to poor performing vendors. This will make them have a positive view on your platform. And you can retain them and increase your platform credibility.
Promote your Multivendor Marketplace platform
Now after finalizing all the aspects you can develop your own multi vendor marketplace platform. Before launching the platform, you need to start promoting it. First you should select the right channel that has all the target audience and, in that channel, you should put your investment for promotion. Your audience will be available in social media platforms. It can be Facebook or Instagram or twitter or any other social media channels. Run campaigns, paid ads and let people know about your launch. this will possibly increase website traffic and get you more visitors. When you get more targeted visitors then you can expect some genuine leads and that can be converted as sales. Thus, it will finally maximize your revenue.
Running a multi vendor Marketplace website successfully is like a dream coming true. You need to put more effort and to show extraordinary dedication that will help to enhance the performance of the platform. Plan properly and build your multivendor Marketplace website and rock the floor of the digital market.