E-commerce sales revenue is increasing year by year. In 2020, it was $4.2 trillion and in 2021 it has reached $5.4 trillion and in 2022 it is expected to reach $7 trillion. This steady growth proves that customers, sellers, and buyers are equally benefited and this has also inspired many budding entrepreneurs to select this industry to start their business.
The leading multi-vendor marketplace platforms like Amazon, Flipkart, have taken a long journey to reach their place. More challenges and struggles should be confronted and more determination and patience are required to survive. If you are a startup then this article will be a perfect guide that will give clear business ideas and will explain the key benefits that can be availed by each user group.
Multi-vendor marketplace – admin benefits
- Global market coverage is possible and will allow users to do their business beyond their geographic limitations.
- Multiple revenue channels can be organized and will allow you to increase your income in a better way.
- Easy to set up and install and can start your multi vendor store with minimum investment when you go for a readymade marketplace solution.
- Admin need not maintain inventory as sellers will take that responsibility. So, there will not be any need for warehouse and office maintenance.
- All necessary tasks are done through automation and less manual interference is needed. With low manpower, you can run your multi vendor store.
Multi-vendor marketplace – vendor benefits
- Can start selling their products without building a separate multi vendor store. They can join with any existing multi vendor marketplace solution and can sell their products instantly.
- Branding and promotion of the platform will be taken care of by the admin and the seller need not spend more on marketing.
- Can reach their target audience through multiple channels. Can easily expand their customer base.
- Through analytics and reports, sellers can analyze their business performance and can take necessary measures to increase their sales and revenue.
Multi-vendor marketplace – buyers’ benefits
- Buyers get access to a wide range of products in a multi vendor platform and they can get all products at a single store.
- Easy product comparison is available while purchasing in a multi-vendor marketplace. Buyers can compare the price and quality with other vendors and can buy the best.
- Advanced search and filtering options will support buyers to easily find their product and will take them to the product page and save their shopping time.
- Buyers can share their opinion through rating and review options that will help other buyers to know the quality of the product or service before they plan to purchase.
Multi-vendor marketplace ideas for startups
When you decide to enter the online market, you should understand that you are entering a competitive space. You should have enough business ideas that will support you in deciding the best platform to start your online business. Here are a few multi-vendor business ideas that will help you in getting better reach and revenue.
Rental marketplace idea
The multi-vendor rental marketplace is one of the fastest-growing business models and has reached $60 million in the U.S. In this model, people earn through re-usable products. Rarely used items can be rented to others and you can easily make an extra amount out of it.
A perfect multi-vendor website is needed to carry out the process. Multiple users can post their products that are available for rent and buyers can find them and can rent them at a comfortable pricing. Some of the leading rental ideas are vehicle renting, vacation rental, equipment rental, furniture rental, and many more. The leaders in this business model are Airbnb and Lyft.
Food ordering and delivery marketplace idea
In this business model, several restaurants and hotels get connected to the online marketplace platform and will list their menu. Customers will search for their favorite restaurants or hotels and will order food from them. The platform will arrange for delivery and will collect the food from the concerned hotel/restaurant and will deliver them to the customer.
10.01% of growth rate has been recorded by this industry in the global revenue market in 2021. Customers show more interest in accessing these platforms as they get their food in a few hours at their doorstep. The admin can earn through commission and on each order delivery, the vendor will pay commission.
Online travel booking marketplace idea
Travel booking has become the most leading industry that has gained 41% of market penetration. Travelers are seen all over the world and this type of platform has more reach across the globe. 67% of travelers prefer online travel booking platforms that will simplify their trip plans. This proves that the market for the travel industry is huge and in high demand.
The admin can earn through commission fee or even can go for the subscription model and can also earn through advertisements. Booking.com is the leading online travel booking platform that has gained millions of active users.
Grocery delivery marketplace idea
Grocery marketplace platform is getting greater attention from the audience as they can order their grocery items online and can get them delivered to their home. This business model also has several challenges like maintaining inventory, delivery within 2 hours, operational cost, and many more. But still, this is one of the best business ideas for any startup.
The admin can plan for a better commission fee from vendors and also make vendors subscribe to the platform. The leading grocery delivery marketplaces are Walmart and Instacart that have all salient features to attract a larger audience.
Online Service marketplace idea
Just like physical products, even services can be delivered through a multi-vendor platform. Several service providers get connected to a single platform and service seekers will list their job and service providers will give their estimation. Service seekers will compare the price and will finalize with any one service provider and their service done on time.
Through listing fees, advertisements, commission fees, admin can increase their revenue through this business model. The key players of this marketplace platform are Fiverr, Urban Clap, and Upwork. Services that are commonly offered through these marketplaces are salon services, home services, repairs, and maintenance, and many more.
Conclusion
Think wise before you start your own best multi vendor marketplace platform as it is very important to survive the market. Utilize the ideas mentioned above and choose a perfect eCommerce platform that contains all essential features to reach your audience. Go for a cost-effective solution and expect better returns.
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