Web store vs Multi Vendor Marketplace
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First of all – web store and multi vendor marketplace are definitely different businesses with different best features, practices and business prospects! With the extraordinary achievement of growing marketplaces, online shopping has been taken over. Established online businesses and additionally business people understand that putting resources into a multi-vendor architecture is a great arrangement as well as the demand of the changing times. Online business financial specialists have also predicted that in future multi-vendor business model especially multi-vendor marketplaces will increase.
A multi-seller site enables you to expand your own online commerce store and converts it into a marketplace to allow multiple vendors to sell on the same platform. Day-by-day multivendor marketplace is becoming popular due to its unique ability to attract huge traffic, allowing multiple sellers to sell at one platform, streamlined and smooth operation, less expensive, etc.
A large number of sellers now seen choosing between web store and marketplace, two different launch pads for their E-commerce startup. as both the options contain advantages and disadvantages. In this article, I am going to provide you with the key points, determining all aspects of an industry through these two main business hubs.
Customer Base for Web store vs Multi Vendor Marketplace:
In general, every business wants to gather more and more customer as possible. Marketplaces have their advantages in this area as they already have an established customer base. Multi vendor marketplace will have many vendors and brands. So, as many vendors will get connected to it, more customers will get attracted to that marketplace. Thus, it is impossible for a standalone web store to target the customer base compared to a Multi vendor marketplace.
Reputation Management for Web store vs Multi Vendor Marketplace:
According to Statista, E-commerce Marketplaces average revenue per user in the selected E-commerce market reach $2,227.34 in 2020.
It is important for any business to establish their reputation among customers. Every seller wants to recognize their customer service, high quality of product and desire to respond their concerns. So Multi Vendor Marketplaces make this a lot easier for every seller, especially if they savor a high volume of sales.
Marketplaces usually have review and rating systems that allow customers to give feedback on products and/or sellers. The more feedback any seller receive, whether in the form of ratings or written reviews, the easier it gets for new customers to trust your store and products.
Site Creation/ Management for Web store vs Multi Vendor Marketplace:
When anyone wants to start an online business then there is a lot of homework which they need to do. Firstly, they need a domain for setting up a website and select E-commerce platform on which the site will be developed, deciding its design, SEO management, its marketing and many other concerns. But, with a marketplace, all these infrastructures already exists. If you want to start selling online with the least preparation and start-up obstacles then multivendor marketplace is a good option than standalone web store.
Process Management for Web store vs Multi-Vendor E-commerce Marketplace:
Every seller on a marketplace will get his own admin panel from where he will be able to handle his orders from shipment to invoice. The vendor will be able to track his inventory to the generation of invoice for any order. Sellers in a E-commerce marketplace will also be able to track his sales and records of his E-commerce business all in one place.
Seller doesn’t have to set up any third party accounting system outside the system to track their records related to payments, sales and inventory, everything will be automated. Moreover, multi vendor marketplaces handle all the collection of payments and other admin details at their own level.
However, with a web store, it will be a necessity for the seller to hire a professional otherwise he’ll be in trouble and bury himself in paperwork.
At the end, I would like to say that it totally depends on the persons choice whether he wants to run a standalone website or set up a store on any reputed marketplace site as a vendor. But, if you ask me I would suggest a E-commerce marketplace to avoid the obstacles of setting up any web store, pressure for customer traffic and its marketing.
To Know More About Multivendor Marketplace:
- Multi-vendor E-commerce Script? An Incredibly Easy Method That works For All
- Build a multi vendor marketplace with the all new and better version 2.0.2 of Marketplace Basic (M2)
- Souq Clone Script: Build your own souq.com today !
- How To Create Multi-Vendor Marketplace? Create Your Own With CedCommerce