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What Are The Best Multi-Vendor eCommerce Strategies For Small Businesses?
17 Aug 2022
e-commerce has revolutionized the business landscape while creating a plethora of opportunities for small businesses and startups to take their products and services at a global scale. On one hand, it is more convenient and comfortable for customers to purchase a product or service just from being bound inside their homes. They had no hardcore rules on when they should shop or how they should shop. The e-commerce platforms offered them complete flexibility in their shopping experience. While on the other hand, evolution and penetration of e-commerce platforms make it easy for businesses to showcase their products to a wide range of customers across the globe which was highly impossible with traditional business models.
E-commerce Multi-vendor marketplace as the name suggests is a platform that enables multi vendors to sell their products and services. Stores can register themselves on such marketplaces irrespective of their size and scale, and find customers who would be interested in buying them. This way customers are presented with ample options in purchasing their needs.
As per the study conducted in October 2021, there are more than 24 million multi-vendor e-commerce platforms and marketplaces. This reveals the significance of such marketplaces in the current landscape.
An e-commerce multi-vendor marketplace is relatively easier to launch and maintain because all that one does is to maintain the online platform and offer shipping services.
The following are types of e-commerce multi-vendor marketplaces -
Product marketplace is one that has vendors who sell products.
Service marketplace is an ecommerce platform that brings together various service providers who can be individuals, professionals or businesses.
Hyperlocal marketplace brings together sellers or service providers within a limited geographical area, say, within a proximity of a few kilometers.
Rental marketplace includes vacation rentals, bike rentals, etc. which brings together rental-service providers in a single platform.
Hybrid marketplace refers to platforms that intend to sell both products and services in a go.
eCommerce Multi-Vendor Marketplace Strategies For Small Businesses
1.Understand the needs of your target customer
Do an extensive research of your target market before you develop a Multi-vendor eCommerce Software. Collect periodic feedback and reviews from your customers. Leverage data and derive analytics and insights to offer customized experiences to your target customers. Have an eye for data patterns and update your strategies periodically to stay relevant to the market needs.
2.Do a competitor research
Analyze competition and design your strategies accordingly. Understanding what your competitors are offering will help you add uniqueness to your value proposition and work out strategies that help you stand ahead of competition.
3.Work out an innovative business model
Innovation doesn’t exist for products or services but also extends to include business models. A constantly evolving landscape means the requirement of an innovative business model that has the ability to flex in terms of scale and scope. Understanding the market well helps small businesses add a flair of creativity and innovativeness to your Multi-vendor eCommerce Software.
4.Refine product search
Given that an e-Commerce multi-vendor marketplace assembles products and services from numerous sellers, vendors, and service providers in a single platform, it is important that you work out options for customers to search, sort and spot products easily and effortlessly. If customers do not find what they require in the first few searches they are more likely to abandon the marketplace. So add advanced search options in your Multi-vendor eCommerce Software and offer options for customers to sort the products that match their search and also specify their requirements through filter options.
5.Simplify registration and onboarding
Always simplify the process of registration and customer onboarding in your Multi-vendor eCommerce Software. Try to integrate the process to allow users to login from various social platforms and email services. Do not ask for too many not-so-important details. Ask for essential details like name, contact number and email address.
6.Build good relationship with reputed brands
Identify brands that are credible and hold a reputation among your target customers. Cultivate positive relationships and try convincing them to sell their products through the e-commerce multi-vendor marketplace. Feature such brands in the marketplace and advertisement materials to attract more customers in a short span of time.
7.Offer rewards and deals
One of the best ways to promote sale of products and services on the marketplace is to offer rewards, deals and vouchers. This would motivate customers to keep coming back. You may push notifications through emails and in-app alerts to ensure that the customer is aware of such deals and offers.
8.Secure payment methods
Always integrate multiple payment options to your e-commerce multi-vendor marketplace. Decision on such options shall be taken based on the preferences of your target customers. Say, if you are running a hyperlocal marketplace, integrate options that are preferred by customers in that geographic area. Ensure safe and secure transactions at any cost. This would enhance the credibility of the marketplace.
9.Ensure on time delivery
Delivery time is an important parameter that customers check when they purchase a product or service. If you are building a new, multi-vendor ecommerce marketplace, make sure that you deliver on time right from the very beginning. This would build trust and confidence in your brand.
10.Launch loyalty and reward programs
Offering rewards and points on every purchase motivates the customer to keep coming back. Based on the reward points and history of purchase, you can customize coupons and vouchers to your customers.
If you are looking to build a Multi-vendor eCommerce Software, you are at the right spot. No matter whether you are building a product marketplace, a service marketplace or a rental space, we help you customize features and functionalities as per your requirements.