Tag: multi vendor ecommerce platform

Multi-Vendor Marketplace

Multi-Vendor Marketplace – Benefits and Challenges

When you think of online marketplaces, Amazon, Etsy, and Alibaba are probably the first few names that come to mind. Interestingly, an increasing number of eCommerce hopefuls today are opting for the multi-vendor eCommerce marketplace model.

In essence, the said model is an online umbrella platform where each seller can run their shop autonomously on a single platform, while the platform owner takes care of different aspects of an eCommerce store such as order processing, tracking, and payments.

According to research, marketplaces will account for almost thrice as compared to single eCommerce stores by 2021.

The time is not far, and we can already see that the market is an efficient and popular business model for start-ups looking to cater to a global market.

Adding to that, let us take a look at the benefits of multi-vendor eCommerce marketplaces:

  1. More products and hence more customers

A multi-vendor eCommerce marketplace typically plays host to a wide variety of sellers who sell different types of items. Customers thus have the convenience of shopping for different kinds of goods under one roof.

This attracts a more significant number of customers than if the marketplace were to sell only one type of good. At the same time, vendors are attracted to the multi-vendor eCommerce marketplace model as it provides them with a convenient online setup and a vast pool of customers to sell to.

For both these reasons, a marketplace model is a lucrative option for an eCommerce business to consider.

  1. No need to maintain inventory

An eCommerce start-up will likely not be able to afford the costs of maintaining a full warehouse of sellable goods. In a multi-vendor marketplace, however, each vendor is responsible for keeping his or her inventory.

That releases the start-up of considerable financial burden, which is significant in the initial stages, and they can focus instead on website improvements and on scaling up their business with focus and efficiency.

  1. Lower operation costs

When opening a multi-vendor marketplace, there is no need to invest time and money in designing products, maintaining inventories, or managing logistics. All of those are the responsibility of the sellers operating in the marketplace.

The marketplace can thus focus on promoting their business through social media, scaling its operations to reach global customers and website maintenance. This also means that they can work with a smaller team, which further brings down costs.

When it comes to creating virtual storefronts, the marketplace can do so easily with the help of any leading multi-vendor eCommerce marketplace software provider such as MobiCommerce. The company can help in launching a feature-rich, responsive online marketplace promptly.

  1. Easier to make money

Because of the wide variety of products and a large number of customers, marketplaces can make considerable sales far sooner than if they were to specialize in just one type of good. They earn a commission on each sale made by each vendor, the percentage for which they are free to decide.

The higher the number of sellers, the higher the volume of sales, and thus the higher the commission income for the marketplace.

However, a multi-vendor eCommerce platform comes with its own set of operational challenges, including:

  1. Price competition

While a large number of sellers ensure a wide variety of options for the buyers, it also leads to substantial price competition as there are several substitutes for each product. This could lead to intense price competition among vendors to grab larger market shares. As a result, the commission that the marketplace earns on each sale goes down.

  1. Quality maintenance

Different sellers offer products of varying quality levels, and the sheer number of sellers makes it impossible for the marketplace owner to do a quality check on every product. If there are too many vendors selling shoddy products, it could bring down the marketplace’s reputation in the eyes of the customers.

However, the problem can be addressed to some extent by having in place a customer rating system for each seller and removing the sellers whose ratings dip below a threshold level. Amazon has that option, wherein you can check the rating of the product and its seller right on the product page.

  1. Delivery management

While the vendors are responsible for the quality of their goods, the marketplace still needs to take care of deliveries. This requires efficient logistics in place to transport items safely and deliver them on time. Mainly, if the marketplace caters to multiple states or countries, managing these logistics can be a time-consuming and a rather expensive task.

The problem can be eliminated with a dynamic e storefront that allows the marketplace owner to track all deliveries from all sellers under a single roof.

  1. Customer management

Customer complaints are typically shared with the marketplace and not with the individual vendor. The marketplace is thus responsible for looking into the issues and following up on any refunds, returns, or replacements that might be needed.

That is a time-consuming process and requires a separate customer service team. Moreover, since complaints could come in 24×7, the marketplace needs to devote even more resources towards addressing all complaints promptly. However, this too can be resolved with the help of a marketplace solution provider.

Recommended Blog The B2B eCommerce Marketplace Technology

Wrapping up

A multi-vendor eCommerce platform requires superior technology and considerable investment to start the business on the right note. That is also one reason why many entrepreneurs shy away from dipping into the marketplace pond.

Thankfully, MobiCommerce is a multi-vendor eCommerce marketplace solution that can help them do away with such limitations and can figure out excellent growth opportunities without making a lot of mistakes.

So, what are you waiting for? Jump onto the marketplace at the earliest and thrive!

Online eCommerce Marketplace software

Seven Upcoming Industries for Multi-vendor eCommerce Marketplace in Middle East

The multi-vendor eCommerce marketplace landscape in the Middle East is undergoing a tremendous change. The total number of online sales in the region is expected to touch $49bn in 2021, with mobile phones becoming the most preferred source to shop online.

In the past few years, the Middle East has come in the limelight due to multiple positive developments such as younger working demographic, advanced infrastructure and high connectivity rates. Therefore, the aforementioned statistics are not surprising at all.

And, guess what? Cash on Delivery dominates the payment method for online purchases in the region. Countries like Saudi Arabia are set to become the topmost online retailer by 2020 in the B2C eCommerce market by surpassing the current trendsetter – UAE.

You may also like to read: Reasons Why You Should Have a Multi-Vendor App for Your Ecommerce Marketplace Like Amazon

Therefore, when we think of the multi-seller eCommerce platforms in the Middle East, there are many. And all of them belong to diverse industries which invariably shows that there is potential waiting to be tapped fully.

Adding to that, here are seven upcoming industries for multi-vendor eCommerce marketplace in the Middle East that are already receiving a fabulous response by consumers:

1) Laundry

This particular industry is thriving in the Middle East all thanks to the increasing urban population in the region. According to the UN Development Programme, 60% of the population is below the age of 30 and with textile and tourism booming in the Middle East, there is really no dearth of disposable income.

Laundry eCommerce solution

That’s why you have so many online and mobile laundry eCommerce shops like Smart Washr, Safleen, CleanLine and Ghasili that allow their customers to book their laundry through Android and iOS mobile apps. Simple!

2) Car rental and office leasing

The tourism industry in the Middle East is on a high. The region is not only witnessing an increasing number of people traveling to other parts of the world but also more and more people are traveling countries like Saudi Arabia, UAE, Egypt and Iran.

This upward trend has also led to a boost to car rental services in the region, which is expected to grow at a CAGR of more than 9% by 2025. Similarly, with so many startups seeing the light of the day, office rentals have become equally popular.

Dubai’s RentSher Middle East is the region’s first online platform for services and product renting, specifically targeting office leasing.

3) Restaurants

Any business related to food is a hard one to crack. Apparently Middle East has found the perfect way to do so.

According to a 2017 KPMG report on the Food & Beverage industry in the Middle East, 87% of food operators are listed on delivery apps with 60% of UAE customers using an app to order food compared to just 18% of US consumers. Such acceptance in F&B marketplace isn’t just restricted to home food deliveries, restaurants are also tasting the eCommerce flavor.

on-demand restaurant mobile app

Saudi Arabia’s first online restaurant reservation portal ‘YoTable.com’ has changed the way the way people choose to eat in the region, including splitting the restaurant options according to the national cuisines for faster decisions. The online marketplace will soon expand to other cities in the Middle East.

4) Bookstores and eLearning

A recent survey by the Arab Reading Index states people in the UAE spend 50+ hours reading while an average reader in the rest of the region spends an average of 16 hours! The number of hours vary considerably. However, it doesn’t mean there is no requirement of online book shopping.

Jarir Bookstore, a thriving eCommerce business based out of Riyadh, was initially a physical retail shop selling office supplies, books and educational aids. But by looking at the increasing demand of the millennials, it expanded its services online by adjusting to the disrupting technologies and changing consumer buying patterns.

5) Health and beauty

A 2017 PwC report states health and beauty is one of the major categories when it comes to offering multi-vendor marketplace solutions in the Middle East, constituting 48% of the pie among other categories like electronics, clothing and footwear, and furniture.

Pharmancy mobile app builder

Saudi Arabia’s beauty eCommerce marketplace Golden Scent is already breaking records. It tripled its customer base in 2018 after launching its mobile app. Moreover, it raised its portfolio by 25% after branching out to the mobile medium.

6) Travel and booking

The focus on online travel and booking in the Middle East heightened only a few years ago. The reason for the positive development is the younger, tech-savvy generation that is hooked on to their smartphones and prefer using the device to make any bookings or shop!

online appointment booking solution

More than 50% of the UAE population relies on the internet to purchase travel-related products or to plan their holiday, with Saudi Arabia (35%) coming in second on this list. Almosafer, a Saudi online tourism platform, predicts an increase in resort-based destinations, growth around religious tourism and continued momentum throughout 2019.

7) Baby care

Tapping the potential of niche markets opens up avenues for success – no matter which country or region you belong to. And one such niche market is baby care. Do you know the aforementioned market in the Middle East and Africa was worth $1174.6mn in 2016 and is expected to reach $1605.4mn by 2025?

The reasons why the market has grown exponentially in these regions is because of increased child hygiene awareness and rise in the rate of borth in the evolving countries. Mumzworld is doing an excellent job, selling clothes, toys and food for both babies and moms online in the whole of Middle East, with an inclination towards the markets in countries Saudi Arabia and UAE.


If you want to be a big player in the Middle Easter eCommerce spectrum, you have to adapt to the ever-changing market trends. Pay attention to what your consumers want. Leverage technology to provide the best possible multi-vendor marketplace software solution. It’s an exciting time for eCommerce in the region, make the most of it this year and beyond!

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