Do you know it took Amazon 25 years to become a multi-vendor eCommerce marketplace? For Alibaba, it was 20 years. Fortunately, that won’t be the case with you. To be successful and reach heights, it would take time but not like 20-25 years.
When they stepped into eCommerce, it was all new. But now, starting an eCommerce business is a necessity for everyone. The ones who are unable to start their own are finding ways to reach customers through eCommerce giants. They successfully sell on multi-vendor eCommerce marketplace like Amazon, Alibaba, Etsy, etc.
On the other hand, big brands with stores all over the world are building their e-stores.
Among them are the businesses like you that are planning to start their own multi-vendor eCommerce website, which is a thriving option.
If you are wondering how to start a multi-vendor eCommerce website, then this article is for you.
Here we’ve covered everything you would need, to be an eCommerce giant like Amazon/ Alibaba.
- Decide on the Business Model
Every time we hear the word “marketplace,” we think about a mall with different vendors selling their products. In online terms, these malls are giants like Amazon, Etsy, eBay, etc.
So, is providing small businesses a platform to sell, a business model? Yes and no!
The type of customers you sell the products to and the services you offer defines a business model. The most common yet popular are B2B, B2C, C2C, and a hybrid model.
So, the first step is to select a business model whether you want to sell products to other businesses or end-customers.
While deciding on a model, also look for a niche.
Yes, you can sell all sorts of products, but niche-specific marketplaces are in trend. Customers tend to look for a specific store to buy particular items. Some examples are Airbnb to rent a place to stay, Uber for car rentals, etc.
- Research your Target Audience
Next, you need to research customer demand for a marketplace like Amazon or Etsy. What do they want from these kinds of platforms? How much are they likely to use it?
Knowing your audience would help you plan your services, revenue streams, supplies, USPs, and more. Thus, while researching, segment your audience into geographic, demographic, behavioral, and psychographics sections.
Based on this, create a buyer’s persona. It will help you cover a wider audience.
- List the Peculiarities of Features
Now that you’ve decided on your products/services, business model, and target audience, it’s time to list the features of your eCommerce website. The standard features include Login, Search, Products, Wishlist, Shopping Cart, Shipping, Payment, etc.
However, to make it feature-rich, you need to think beyond eCommerce giants. Look at the services they offer like live chat, AR, VR, personalization, etc. Try to implement those in your e-marketplace. List every feature and sort what you want for you, vendors, and the customers.
For instance, a module to manage Sales and Discounts would be beneficial for you as Admin. Vendors would benefit from Product and Order management and customers from Order Status.
The best approach is to create an MVP.
- Focus on Vendors, Suppliers, and Customers
Add inventory. For this, start finding vendors and suppliers for your business. Browse the internet, check websites, forums, discussion groups, communities, special events, and exhibitions. Reach the potential sellers through call and email.
If you’re going online after establishing an offline store, arrange meetings with your potential partners, and explain to them about online selling. To attract customers, you would need an inventory that’s available on your competitor’s site. So while dealing with vendors and suppliers, keep a check of this matter.
- Choose a Monetization Model
It’s good to invest but wise to think of the ways to avail potential benefits out of it. In eCommerce terms, I mean revenue streams.
There are different ways to generate revenue, and you need to choose yours. You can select one of the standard models, like commission or subscription. Or you can create a hybrid by integrating one-to-many models as Amazon has.
The standard monetization models include subscription, commission, flat rate, affiliate, etc.
- Promote the Business
This is where your business game starts. By now, you’ve planned and worked out everything required in starting an eCommerce business. Now, you need to tell the world about your business. You need to market your e-store, attract customers and vendors.
To achieve this, analyze the big giants, see the marketing campaigns and trends around. Determine what works for you and implement those. Slowly and steadily, you will achieve your goal.
Developing an eCommerce marketplace has its own set of challenges. However, with the information and right guidance, you can build your multi-vendor marketplace.
You can find us when you search for “How to Find the Right Development Company” as well as “how to start multi vendor ecommerce website.”