chicken and egg
Chicken-egg Problem Solved For The First Timers: An Effective Approach To Growing Your Multi-vendor Marketplace

Chicken-egg Problem Solved For The First Timers: An Effective Approach To Growing Your Multi-vendor Marketplace


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The coherence of increased security of the websites, secure transaction environment, comprehensive information of products, and a diverse range of reviews has helped customers to arrive at their purchase specific decisions quickly. Thereby, winning the trust of the customers. The enormous quantity and wide range of products on E-commerce stores have compelled users to make them their one-stop-shop destination. The only choice of Chicken-Egg Problem Solved for the FIRST TIMERS: An EFFECTIVE approach to growing your Multi-vendor Marketplace differ.

From Accommodation to booking taxis & tickets, medicines to cars, the marketplaces not only to the niche audiences but to the audiences of wide interests. Uber and Airbnb are examples of marketplaces that are niche based. While the former is the taxi aggregator the latter is for accommodation. Flipkart and Amazon serve people with diverse interests.

They are among the most recognized ones, however, there are thousands of smaller marketplaces as well, and given the scope of the e-commerce market, their prospect looks bright. The GAP is huge and the opportunities are endless and time is the best to make a start.

However, the opportunity comes a dilemma. Do I need to add more customers first and then add more sellers or do I start with the larger number of sellers? The classic chicken-egg problem. Isn’t it?

The BEST Approach for growing your Multi-vendor Marketplace:

To start with many sellers often require higher efforts. The reason is simple why would they come to you? Do you have a reputation, resources, skills, determination, and most importantly experience to get things done? The sellers will only gather to your platform if you have got a great reputation and they have trust in you. It requires a huge investment.

Take the example of, Marc Lore started the in 2015 with great fanfare. His previous experience as the founder and CEO of helped him understand the prevalent problems of the Market. His reputation earned him the trust of investors and he delivered it with the bang!

But everyone is not Marc Lore, even his one hundredth. Most people start with minimum requirements and learn by iteration and no one is willing to gamble on the starters not having appreciable experience.


The key to success is to deliver quality products or services. The quality compels users to buy from a particular marketplace. If you don’t know about a-lot-of-things, start with one. Deliver the best quality out there with the best after-sales service. Provide the best information about products. Troubleshoot all the apprehensions and educate them about the merits of using your product. Market them a product in a way that facilitates decision-making.

Don’t add another area until you’ve exploited the target audience for the first product.

The quality wins the customers and prepares a pool of fans and they will respond positively with your other product. This whole process takes time nonetheless is the most constructive way to earn confidence and trust of customers.

A step towards growing your Multi-vendor Marketplace: ADD MORE PRODUCTS 

Now that you have got a significant number of users, add some other products that are useful for your target audiences. Repeat the same process. Quality MUST be supreme or it will cause a dent in the brand image. Follow the iteration: Educate → Quality Products –> Best after-sales service-→ Educate them about all the merits.


Now comes the SCALING UP part. Chances are that if the above steps are followed seller will stagnate. And this is the good part. It means that you’ve more customers than you can serve with the same infrastructure. Doing it also sends out a great signal to the like sellers. They realize the authority of your business.

Get Ready to growing your Multi-vendor Marketplace :

If you’ve orders overflowing on your store, it not only implies that you’ve been successful in establishing trust with your consumers. It is also a market validation for your store. Now you can invite or register more sellers on your store in proportion with extra offers. And once again iterate Educate → Quality Products –> Best after-sales service-→ Educate them about all the merits.

Following this simple-looking iteration, sustainable growth can be achieved

Start your Multi-vendor Marketplace like Amazon For Free

Starting a new is very easy. It only requires the installation of an extension that converts your online store into the Marketplace. With the installation of this simple Multi-vendor Marketplace extension, sellers can add like sellers on the platform. Now you can become the administrator and manage the entire process from your website.

It is an effective way of growing your business and later on converting it to the Multi-vendor Marketplace to go one step higher. Amazon grew followed the way like this only.

Furthermore, you can start with 3-4 trusted sellers. This divides the responsibilities and expenses and the marketplace can be scaled up quickly. But no compromise with quality can only win the customers’ trust and compel them to buy only from you.

Thanks for your interest!


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