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What is a multi-vendor marketplace?

A multi-vendor marketplace is a platform where multiple vendors register online on a given website particularly e-commerce websites that supports multivending to sell their products from one storefront.

This marketplace or store gives shoppers the liberty to choose from the varieties of products on sale and provides sellers with a bigger base of ready-to-buy customers.

Think of a multivendor website as a shopping mall where sellers deal in different sets of products under one roof. The landlord of this roof on this matter is you the owner of the website and you can allow vendors/ people with their products to come sell on your mall, in this case being your website.

The landlords on these arcades and malls collect rents and for your case with the multivendor marketplace, you get a commission per every product sold on your website. Remember these products are not yours, every vendor who registers on your website will pay you that commission per every product sold.

The difference between multi-vendor marketplace and Online Store

The biggest difference between multi-vendor marketplace and regular online store is that, a multivendor website or marketplace has the capabilities to support multiple sellers while ordinary store doesn’t support that. Itnis just a one’s man online shop.

Multi-vendor marketplace business model

Multi-vendor stores have the technical infrastructure a d the advantage to support a vast variety of products and sale of thousands of products across a vast range of categories through a huge number of sellers.

It is also known as ‘zero inventory model’ since platform owners mostly don’t hold any product inventory of their own. This has made it become one of the best ventures of business models and the major reason why the demand for multivendor marketplace platforms is going up.

Here’s how multi-vendor business model works:

✔️ Vendor registers with multivendor store

✔️ Vendor owns a dashboard to manage his product listings.

✔️ Store owner can also add new vendors

✔️ Store owner controls the withdraw a d can limit the amount to be withdrawn by the seller.

✔️ Store owner has the dull control of the website and can approve or disapprove the vendor or vendor’s products

✔️ Store owner keeps a small commission from the product sold and credits the rest to the vendor

WATCH THE VIDEO HERE and learn more about Multi-Vendor online Marketplace.

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