Since its arrival in the market, the multivendor marketplace software has dominated the ecommerce sphere. With its versatility and flexibility, it has virtually obliterated the online single vendor marketplace from the market. Adding the revolutionary feature of bringing multiple vendors selling different or same kind of products under one digital roof giving the consumer the luxury of choice from a host of selection, multivendor marketplace has changed ecommerce for better.
But the consumer is not the sole party that stands to benefit from a marketplace solution. Even the sellers and marketplace owners have their revenue margins climb up remarkably. Big players like Amazon and eBay have observed exponential growth thanks to this marketplace model. But how does it exactly boost the business growth? we discuss below.
Multi-vendor marketplace vs business growth
We have quantified the effects of adopting a multivendor ecommerce marketplace in 5 broad points after observing the market trends across the globe. Here is how it benefits an online business.
1. Base expansion:
Whenever a vendor joins in via Magento multivendor marketplace extension your marketplace has its product and services portfolio are expanded. Your webstore then can not only offer a wide variety of products but also a wide variety of a single product. The more choices you offer your site visitors the more likely you are to convert them into sales and also leave a lasting impression on their minds and give them incentive to come back again for their next purchase. This will in turn push your conversion rate significantly up.
2. Deeper market penetration:
market penetration has always been the Achilles heel for ecommerce businesses. But with a marketplace, vendors from across the globe are assembled at a single place, thereby simplifying logistics issues. Customer demands for quicker shipping and deliveries can be easily accomplished. Also, the marketplace owner can now connect to its customer in remotest corner thanks to the presence of an associate vendor in the area. Thus, market penetration is multiplied manifolds.
When in a multivendor marketplace setup, the marketplace owner is freed of the responsibility of managing inventory, updating product information as well SKU up-gradation. All these are handled by the individual vendors who are selling those products. The marketplace only has to handle shipping methods, a robust and secure payment gateway and marketing costs. This brings down significantly brings down costs by eliminating the investment that would otherwise be needed to manage those departments. This streamlines the flow of business and also frees up your resources to be diverted in the improvement of shipping solution (which you can either get your own or go with the marketplace’s solution).
as the no. of vendors associated increases it lead to ‘division of labor’ which means that earlier all the tasks like stock management, order processing, packaging and shipment were tackled by a singular unit for the entire customer queue creating huge delays and inefficient work. But with multivendor marketplace script in motion, all these tasks have been divided evenly among various vendors specializing in their respective department. The speeds up the entire process from order placement to product delivery in an extremely efficient as well as increasing the no. of customer that can be simultaneously be engaged.
5. Customer satisfaction:
the primary aim for any business is to provide a satisfying customer experience so as to perpetuate themselves in the market. As you add the aforementioned features to your Magento multivendor marketplace help you take a decisive step towards that. You can further build on that by focusing on your customer services and giving your consumer a highly personalized experience. Curating your store to the needs of customer based on their search history and favorites and previous purchases is one of the easier ways of doing that. Ensuring that your consumer feels special and valued will build consumer loyalty boost your consumer retention rate. Eventually, this will create good word of mouth for your ecommerce store and draw even more potential consumers to visit your store.
Choosing a multivendor marketplace is a no brainer in today’s ecommerce scenario. The competition is intense and consumer is spoilt for choice, the longer you manage to hold a consumer’s attention the more certain your sale becomes. Therefore, focus on your marketplace or get your online business one if you haven’t yet.