23 January, 2022

What Makes a Multi-vendor Store a better bet than Ecommerce Shops?

Multivendor Marketplace by Apptha

In the recent business trends, online businessmen prefer Multi Vendor marketplace to Ecommerce shops because the cost required to start an Ecommerce site is very high and even the probability of succeeding is low as being an unknown seller it is really tough to earn a customer’s trust. Furthermore preventing piracy during online transactions is a daunting task. Now let us take a quick look in to the description of marketplace software and the advantages associated with it.

A brief description about Multivendor Marketplace

A multi vendor marketplace owned by a Marketplace owner/admin provides a vast online platform to multiple merchants in order to sell their products. Once a merchant signs up, he can form his store and launch his products in it. In addition to it merchants gets their own dashboard to view the sales figure, most viewed products, etc. The merchants will have to pay a fraction of their sales proceeds as a commission to the owner for every successful payment transaction.

Popular Ecommerce brands that use Multi Vendor Module

Some of the popular Ecommerce giants that have adopted this multi vendor prototype are

Amazon:Amazon Marketplace CloneAn Ecommerce store, which was founded in 1994, started as on online book store then they gradually started selling a wide variety of products and has extended their client base worldwide. The business model adopted by Amazon is a multivendor marketplace framework.
Ebay:Ebay Script CloneAn American multinational Ecommerce company founded in 1995 provides B2C and C2C services via internet. This firm has also adopted marketplace prototype as it charges its users a seller fee on basis of the items they have listed or sold.

Etsy:Etsy CloneAn online Ecommerce website found in 2005 mainly concentrates on selling handmade and vintage products. This website follows the marketplace model as it gives it sellers a storefront where they list their goods for a fee of US 0.20$ per item.
Flipkart:Flipkart CloneAnother online Ecommerce company Flipkart was founded in 2007. Initially they concentrated only on books and then gradually started selling like electronic goods, fashion store and collectible products respectively. This firm, which operates in India, follows the Marketplace model.

The above online shopping sites are the pioneers who sparked the marketplace revolution. Later many of the ecommerce development companies started to develop clone software to build marketplace websites like Ebay, Etsy and Amazon and that is the reason why we have surplus readymade software today.

What is the reason for a surge in the online marketplace software usage?

Most of the businessmen have started to invest in multivendor marketplace because of its business friendly features described below

Array of products attracts more visitors and generates sales

As there are large numbers of vendor using a marketplace there is also a wide range of products put up for sale. Since there are a number of products, the customers are flooded with diverse choices. Hence this leads to a higher traffic and also improves the sales. Moreover the workflow of a marketplace is not as complex it looks. For a seller it behaves like a hosting mechanism and for a marketplace owner it is a multivendor management portal.

Simplifies work and reduces effort

The burden associated with online business is that the store owner needs to update information related to the products like description, price details, feature enhancements and so on. This cloud based market software transfers this responsibility to the merchants and so each merchant needs to post updates about his own store. Moreover, a responsive marketplace script helps in providing a steady user experience across devices of all sizes.

Cost Effective

Marketplace software can save a lot of your capital reserved for ecommerce expenditure. The new trend on the rise is the cloud ready marketplace scripts that allow buyers to directly launch the marketplace website on cloud without having to worry about the technical configuration issues that results while having a separate server installed. Since each seller manages his/ her store you need not have to maintain a separate development team for that purpose. Thereby you can cut down on your costs and focus more on your marketing strategy.

Inventory maintenance is not required

Maintaining an inventory is arduous task. There could be some items listed in inventory but in reality you won’t be having enough stock. Such a situation could lead to an embarrassment. By using the cloud based market software you can stop worrying about it as maintaining the inventory becomes the responsibility of merchants.

Why has multi vendor Ecommerce store gained prominence among merchants?

The multi vendor marketplace has gained widespread acceptance among merchants as well owing to its merchant-friendly features listed below.

Generates traffic

In general merchants may spend thousands of dollars to establish an online store. But still they might find it tough to generate traffic. In that way a multi vendor marketplace is very advantageous as it has a better probability of generating traffic and improving sales.

Perfect place for making profits

Rather than spending money on setting up an Ecommerce site this online marketplace script is the perfect place to make profits as this marketplace has already its share of visitors. There is a possibility of getting visitors from other stores.

Meager costs for setup

The setup costs are meager compared to setting up a website and investing many dollars in advertising. In the marketplace you just need to shell out few dollars per month in addition to paying a nominal fee for every sales transaction.

Easy to manage products

In a multivendor marketplace the merchants find it easy to manage details about products like price, delivery, feature enhancements etc. The most important thing to note is the merchant need not require any technical knowledge to manage these details.

In addition the customers too are benefited as this multivendor script gives them vast amount of choices to them pertaining to products. It helps them to compare the price and get an idea about the product pricing. Furthermore there are ratings and reviews about the products which helps the customers to get a clear idea about the quality of product.

Hence from the above analysis it is quite evident, that the marketplace with its user-friendly and sales generating features has an edge over Ecommerce shops.

If you are interested in setting up a multi vendor marketplace on cloud platform using AWS

Try Apptha Multi-vendor Marketplace


  1. Oge Reply

    This is a great business model. A multi-vendor store is very cheap to set up and operate. You only need to handle the technical side from the back while all contents are generated from the sellers end. Its one of the best online store software to start business.

  2. Victoria Marie Reply

    Awesome post. Must recommended for those who are going to launch online store. Multi-vendor means multi-product, multi sailor, multi traffic as well as multi profit.

    1. Ramanathan Post author Reply

      Dear Victoria,

      It’s Great to hear from you. Hope you enjoyed this post. If need any assistance to deploy multi vendor system let us know.


  3. Rafi Nizamee Reply

    Hi Ramanathan, this is indeed a resourceful post.You have rightly pointed out the advantages that multivendor marketplaces have over ecommerce stores.

    Having said that, there is one thing I’d like to share. The trust factor is crucial for a marketplace since it’s a congregation of wide range of buyers and sellers. More often than not, marketplace owners find out one (or more) of the vendors have delivered a faulty product that earned bad reputation for the website.

    This is a tricky situation and has to be managed cautiously. Because you do not have the benefit of checking the product quality every time.

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