In the last few years the popularity of ecommerce marketplaces has been growing much faster than brick and mortar stores. You would have already seen the examples of successful ecommerce marketplaces like Amazon, eBay, Etsy or Flipkart. It’s quite amazing that Websites like Amazon had crossed the 100 billion revenue mark in 2017. The Net Sales of Amazon in 2017 was 178 billion U.S. dollars and it is the most popular online marketplace in United States.
People think it’s a hard task to build an ecommerce marketplace in today’s competitive world but a good strategy and an effective ecommerce website that engages people can contribute to the success for entrepreneurs. If your ecommerce website doesn’t engage the audience your efforts might end up in an ecommerce website that is not effective.
Here are the results from a research by Emarketer, that shows the ecommerce growth year on year in different continents. As you can see that the Online Business Platform Sales are growing every year more and more.
Source: vanguardngr
Let’s first see what is an ecommerce marketplace?
The primary requirement is to understand that what is an Ecommerce Marketplace? First of all, an Ecommerce Marketplace or a Multivendor Marketplace is a place where you can find different products from different vendors being showcased on the same platform.
The owner of the ecommerce marketplace is responsible for attracting customers and for processed transactions and the third party vendors deal with manufacturing and shipping related work.
How Vendors Are Registered For a Multi-vendor Marketplace
Benefits of Creating an Multivendor Marketplace
Creating your own ecommerce marketplace can be a substantial investment initially but it will also benefit you in multiple ways:
- E-commerce Marketplace plays the role of a mediator that monitors transactions between buyers and sellers and only steps in if something goes wrong between both the transacting parties.
- Vendors can create their own stores and upload products.
- Ecommerce Marketplace Business is less time consuming.
- This is true from integration perspective but for an entrepreneur who is opting for multi vendor solution he needs to work on traffic, payment gateway and other things.
Our Basic Marketplace Solution is now available on Magento Marketplace.
Challenges in Creating an Online Marketplace
In today’s competitive era if you are going to create an online marketplace then you need to understand the prerequisites in order the make the process smooth.
- Online Marketplace may require investment in the initial stages.
- You will have to find investors and persuade them why is the idea of your marketplace is lucrative.
- The next thing you need is purchasers for your Online Marketplace. Build your online marketplace theme engaging and popular among purchasers.
Major Challenges Faced By People In Building an Ecommerce Marketplace
- You’ll have to coordinate with vendors and purchasers, enabling purchasers to get in touch with apt dealers as well as presenting the merchants’ offerings to the relevant purchasers at the correct time. It requires thoroughly considered search, navigation, machine learning innovations and promotion apparatuses.
- Next thing you need to do is to set up and maintain a flawless shopping experience. Merchants won’t look for an elective sales channel in the event that they are happy with your terms and conditions, service on your website and support. In the meantime first rate benefit and pertinent item decision or even novel experience will guarantee the reliability of your purchasers.
- Strive to achieve better results. The online marketplace owner earns majorly from the commissions charged over successful sales made by vendors. Which clearly means the better the sales the more would be the revenue. Hence focus needs to be laid on driving more traffic and generating revenue thereafter.
- You’ll need to discover the approaches to watch out for the types of listings, items and seller performances on your marketplace to see who does best and dents the image. Consistent observation will assist in taking required measure well in time.
Read this blog to find out about how to create a multivendor marketplace:
How To Create Multi-Vendor Marketplace? Create Your Own With CedCommerce
How CedCommerce Helps You In Overcoming these Challenges?
Creating an ecommerce marketplace is not a easy thing but made easy through the enhanced solutions by CedCommerce. CedCommerce provides you support in Creating Multivendor Marketplace. If you want to make your dream come true we provide you readymade Open Source Marketplace Script with non-encryption. You can also easily customize all features and products based on your requirements.
With the help of CedCommerce Magento Multi Vendor Marketplace you can easily convert your store into an multivendor marketplace in no time.
CedCommerce Advance Marketplace Extension is a custom made Magento 2 marketplace solution to aid you to create B2C marketplace platform with an array of best and most used features in the industry. It comprises built-in extensions, Magento 2 Multi Vendor addons, Shipping methods and Payment modules to develop a website on the likes of Amazon and Ebay.
That’s not all, a magento 2 store owner can avail this vast variety of Marketplace addons to create an online B2C marketplace platform that is tailor made to their requirements.
Conclusion
Here we have tried to collate the major challenges entrepreneurs generally face while beginning to start a multivendor marketplace. Building a multivendor marketplace requires the right planning and execution of that plan, done right you can achieve the heights of this business in no time.