How to Start Multivendor Marketplace from the Scratch?

As COVID-19 is spreading at a rapid pace across the globe, many people do not prefer to go to a commercial shop, due to the fear of getting exposed. This situation has changed purchasing behaviour and overall seller and buyer conversion journey.

So, what’s next?

If we look at the present scenario, the offline retailer is accepting the fact that this crisis can be a rise in future and it could be a tough time for them. While social distancing has become the only solution to reduce the spread of coronavirus, people have begun to shop online. This changing buying behaviour has given a boost to online businesses. Thereby, to switch into the online business and accept digital approach is become the only option to survive in this tough time.

There is no denying from the fact that online shopping trends have risen with increasing mobile users and in order to maintain a social distancing but to start and grow it not as easy as we think. While launching it, the store owner should take below point into consideration:

Market research to better understand your audience: The first and foremost thing which you require to understand is your target market and what they are looking for. Before presenting your marketplace to your prospects, you have to first understand their needs and according to that prepare a list of which features you need to include. This will help you to know the pain points of your customers and how you can better serve them.

Choose the right business model: There are four different types of the marketplace which are Business to Business, Business to Consumer, Consumer to consumer and peer to peer marketplace. Take a deep dive into all business models and choose the best one according to your needs. It should make sense for your vendors and buyers and should be helpful for both to fulfil their requirements.

Conduct research on whether to go with a readymade solution or develop it from scratch: There are two methods of marketplace development- using readymade eCommerce platform or development from scratch. Both have their own pros and cons. So, you need to know the pros and cons of marketplace development from scratch or go with the readymade solution and choose one that caters to your needs.

The vendor gets a right share of sale: Commission structure also one of the biggest concern for which, you need to make the clear understanding of pricing models of your competitors, product value and which pricing model is the best for your vendors. For that, you can install a module that automatically breaks down cost if vendors make it too high and provide a commission to vendors by the end of the week.

Secure payment gateway: In your marketplace, it is obvious that there will be lots of transaction will take place while shopping. People would like to prefer to shop if they will ensure whether their payment details are secure. In addition, your multivendor marketplace must have a regular backup system and security feature since it handles multiple high-value transactions.

Adequate inventory management: Effective inventory management is also playing vital role in order to provide the delivery of product in the assigned time period. It will help you in providing the quality product at the right time and you can avoid products being out of the stock. By effective inventory management, you will not require spending too much money to store huge stock and you can deliver products at the right time.

Though to start and run online business not like a walk in the park, by employing all these comprehensive and proven strategies, you will be able to grow your online business that will sustain market growth. If you are still facing problem then you may take the help of multivendor marketplace Development Company or multivendor marketplace solution provider.