The store owner needs to look for all the available possibilities and benefits offered by them before making any move. It’s not an easy task for the admin to decide where to list the products. Marketplace is the prime options when it comes to online trading.Since the day, Marketplace concept has launched, it has spread a buzz among the eCommerce owners. Multiple benefits accompanied by the Marketplace with itself lure the store owners to switch to Marketplace from a single vendor store. We cannot ignore the growth eCommerce industry has witnessed in the past few years.The growth and success opportunity that Marketplace model can bring with it can’t be ignored. Etsy, eBay etc are the well known example of a successful Marketplace. Online Marketplace helps a vendor to enhance its traffic, earn manifold and take the business to new heights.Marketplace model is being adopted by many countries at present. Main functions carried out by the Marketplace is that it caters the requirements of all the users and will enhance the range of target audience.
What are the components of Marketplace model?
The components of the Marketplace structure that play an important role in success of your business are:
1. Inclusive nature
A marketplace model enables multiple vendors to easy register their store. Sellers need to follow a simple procedure for listing their products at the Marketplace. Many vendors ask for their profile page in the Marketplace. Sellers can add their profile details and manage their products using this profile page interface.
2. Feedback and reviews
In Marketplace, customers need to contact the sellers directly for any feedback and suggestion. Multi vendor Marketplace allows the customers to send their valuable feedback using their account or email id.
3. Easy Search feature
A full featured Marketplace allows the customers to search for the desired products in a hassle free manner. Smooth the search procedure higher will be the chances of conversions.
4. Price Management
Marketplace involves large number of sellers to sell their products. Higher is the chance that a particular product will be available at different price at the Marketplace. So a effective Marketplace will assist the sellers in maintaining the product price along with the features. Moreover the Marketplace admin will be generating a high amount of commission by selling the goods of third party vendors.
5. Perfect UX for users
The competition does not only exist between the sellers, but also the marketplace sites compete with each other too. This competition encourages the marketplace sites to offer tempting deals and additional offers. In addition to this, marketplace sites keep experimenting with their UI and UX optimization in order to provide the convenient user experience to the buyer so that they remain stacked to their site only.
How can Multi vendor Marketplace benefits the admin?
Here are some of the factors which will surely help you to understand the importance of Multi vendor Marketplace platforms in detail and will help in deciding the best choice for your business:
1. Expansion in every aspects:
Two important support systems of Marketplace are the sellers and customers. Marketplace floods customers with the items ad services of the multiple retailers at the same platform. Multi-vendor store enhances the range of targeted audience and give a boost to the sales. More the choice of goods offered at the Marketplace better will be the probability of visitors turning into loyal customers.It’s really important to attract visitors towards your product and convert them into potential buyers. Selling through your website provides you the freedom to display products as per your choice but your product reach is confined to limited customers only.
2. Marketplace penetration:
Marketplace helps you to expand your store reach and earn from various regions by providing early shipment to the customers. Sellers of different locations integrate together to sell their items or services at the Marketplace. Services can be provided to the customers in the earliest possible time as sellers can easily satisfy their early shipment needs.
3. Cost Management:
The main benefits offered to the admin by building their Marketplace is that the Marketplace takes away the responsibility of inventory management, product update and SKU up gradation. Expenses required in managing the inventories gets reduced without even disturbing the business.
4. Efficiency:
Unlike the single business unit, Marketplace involves the division of responsibilities and labour. Marketplace provides a smooth and speedy services in an efficient way. With Multivendor Marketplace, packaging and shipment services can be offered to the customers in a speedy way.
5. Customer Satisfaction:
Marketplace provides the customers with wide range of options to choose from. The main intention behind building the multi-vendor store is integrating multiple sellers along with their diverse services under one roof. Providing customers the choice to select from the wide range of the goods and satisfying their needs boosts the conversion rate of the stores.
6. Boost to the economy:
While providing such benefits, the one thing which multi-vendor store model does silently is its contribution to the economy. By bringing various vendors and start up together, it give a boost to the base of economy. Especially in developing countries where a large portion of market is captured by start ups, building a Marketplace will not only boost the sale but will uplift the revenue.
7. Increased Customer Retention:
Marketplace offer goods and services of Multiple vendors to the customers at the same platform. Multi-vendor store allows the admin to identify their customers, build relationships with them and brings new customers with the similar choices and preferences.The customers get a wide range of product to choose form, while the sellers get an access to larger audience range. The e-commerce website on the other hand enjoys various benefits in terms of cost cuts, customer satisfaction, enhanced conversion rate, and commission from the sellers.
8. No pain of Managing pure inventory
Now the firms do not have to necessarily manage their own inventory. The inventory is maintained by the sellers and also the delivery in most of the cases. There are certain sites who operate as the hybrid ones and manage their own inventories too. However, the pure form of the marketplace does not include the inventory management by marketplace firms.
Watch how Marketplace works?
Conclusion:
Store owners are always looking for growth and expansion of their business. The mutual benefits, cost management, enhanced traffic, increased conversion rates and inclusive nature of the model builds a win-win situation for the admin. Various software are available in the market that can build your Marketplace in an hassle free manner. Extensions for building a multi vendor Marketplace are available for PrestaShop, Magento, Magento 2 and OpenCart stores.
There is no doubt that Marketplace can improve the performance and conversion rates for your eCommerce store. But don’t wait for a Miracle to happen to boost the growth of your business instead switch to the Marketplace and be the owner of a Marketplace like Etsy and eBay.
For further information, feel free to contact support@Knowband.com
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- How is PrestaShop Marketplace Module a good bargain for store admin?
Hey.
This article encouraged me to finally sell my products on Marketplace. Marketplace really provides many opportunities to earn good revenues and it also increased the popularity of my brand store in between customers. Thank you for this wonderful article!!