Learn how to build a multi-vendor ecommerce app development for your business in this blog.
A multi-vendor marketplace lies between the “Latest” and “Oldest” marketplace platform trends. It has great pride in serving the buyers and vendors to exchange their products and services directly with no interaction of another medium to better the online business.
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Then we’d say, you’ve landed in the right place; we’re here to share valuable information to share with you.
What is a multi-vendor marketplace business app?
An online marketplace is a place where people sell things to others on the internet. To help with this, there are some new marketing rules that have been made. These rules help vendors and buyers work together better.
“Sell products that your customers like, and they should go buy the products without any second thought.”
As we said before, an online marketplace is a place where buyers should feel convenient and comfortable to use. You know what, no online buyers are ready to sit, search and learn how to use a compound and polished marketplace platform before buying anything online.
Isn’t it?
You learned the basics of a marketplace platform, and now we will teach you how to create a platform or app for multiple vendors to grow your business faster.
What is objective does it have to meet?
The main goal of an online website is to make it easy for people to buy and sell things quickly. But there’s also another goal: to promote and market products that are relevant to you.
This is completely a common among any online store, right? But what’s next?
You need to onboard valued sellers and pull the targeted audience and turn them into your potential buyers, particularly those who want a good deal to grab.
While talking about online business or online marketplace, no one can ignore or rule off one name in any form either we can’t do it; it’s none other than Amazon, an eCommerce giant.
Amazon – An Ecommerce Giant
As you all know, Amazon is the largest online marketplace born in the USA and now serving every corner of the world. It is now the world’s largest online retailer in terms of revenue and market capitalization.
One can find anything on Amazon – right from books, clothes, smartphones, home decors, essentials, and much more. There isn’t a single thing that can’t be bought on the platform.
How does Amazon Work?
Since its inception, Amazon has been well-received by global online buyers; In simple terms, it is examined the world’s largest trading platform. Each day, billions of online shoppers search, find, and purchase everything they need.
The concept of Amazon is quite straightforward; it enables any third-party vendor or supplier to add products to Amazon’s inventory. There is the point where everything starts because if a customer makes a purchase online from the Amazon website, then the supplier is responsible for fulfilling the order made by the shopper.
Benefits of having a feature-rich multi-vendor ecommerce app
A marketplace platform is like a pile of coins; if it’s stacked and properly done as it has to be with part of the right strategies, it will pick great success. You could see, and this becomes more obvious when you look at the success of retail market websites like
Amazon, Etsy, and Letgo.
At any given moment, online marketplaces can serve as an affordable and effective tool to set up an online business.
Why are we much sure about the marketplace platform?
Because it offers you the best possibility to make massive revenue from day one.
Ecommerce stats(recent)
Besides the stats, the retail sales worldwide from 2017 to 2021 (in billions of US dollars) show the exponential growth of an online sector. Global online sales reached $2.4 trillion in 2017 and were expected to hit $6.56 trillion by 2023. Check out our large eCommerce stats by clicking here.
How come the retail sales jump to such a spot?
Because online shopping has become a new trend and popular activity worldwide.
Here are some stats for you to find the true potential of the online retail market:
- Revenue in the eCommerce market will amount to $650,000 million in 2021
- The annual growth rate of revenue is 8.6%
- Toys, groceries, hobby, DIY segment alone making the market volume of $248,000 million in 2021
- The market volume of online retail will be 865,000 million in 2024
- User penetration is 80.8% in 2021 and is expected to hit 85.2% by 2024
- The average revenue per user (ARPU) currently amounts to $2,467.40
Let’s hope that you’ve gotten inspired by the above online sales performance stats.
Inspiring right?
Then start to work with your idea of creating an online marketplace app to compete with substantial ebusiness players in the retail market.
Don’t be scared of their size; let them be big, but it doesn’t mean you can’t achieve massive success.
Yes, still, it’s possible, but how would you do it? Simple, step a mile ahead with a tech support provider, Webnexs.
We, as experts in providing marketplace solutions, will assist you throughout the entire process starting from the very beginning.
Evaluate idea and work out on it
Having a good idea is great, but it’s not enough to make things happen. You need to think carefully and plan out the product you want to create. This may seem complicated, but it just means doing some research on the market and the field you’re interested in.
Market research starts with studying big players in the domain and understanding their business approach to rendering your own.
For example, let’s take some considerable names in marketplaces like Amazon, Etsy, and Letgo.
Define the business model that suits your multi-vendor ecommerce app development
Commission model
This is the best way to make money on online marketplaces. The platform lets you take a cut of every sale: when someone buys something from a seller, the platform charges a fee. It’s that simple.
Marketplaces like Airbnb, Etsy, and Uber are using a commission business model for their business.
Membership model
Another way to make money with online marketplaces is the membership model. In this model, users pay a fee to access the platform. This helps sellers connect with customers who value their products and services, and it allows shoppers to save money on their purchases or find unique experiences.
Listing fees
The listing business model is when marketplaces charge vendors a fee to add new products to the platform. This model is simple but powerful, as it encourages a large number of listings in one place.
Craigslist is the best-known example of the listing fee business model.
Let’s assume that the following stages in the development of the multi-vendor eCommerce marketplace app have been completed and are ready to move to take a big step next:
- Market research and business analysis
- Product definition
- Feature definition (core features and add-ons)
- Business model selection
Okay, now everything is on track, and as a result, we have got a neat and well-structured application development flow to start with.
Development flow
This is how the ecommerce multi-vendor marketplace app development flow looks:
Prototyping
Creating a mind map of user interactions and product functionality is crucial to understand how end-users will navigate the application.
In simple, designing and developing an intruding UI/UX is about the application prototype development. While creating the UI/UX, it is essential to implement all the functions described in the specification.
Creating a design and app screens
It is enough to render and design a few to explain and elaborate screen proceedings to go with – the goals, target audience, and functionality. All these are important to create a design concept.
By default, every designer who closely works on the project should offer several styles to choose from. Once the design concept has been approved, the rest of the screens are rendered about it.
Coding
Begin a marketplace app by creating an MVP, which is a simplified version showcasing only the essential features to persuade customers of its necessity, and use their feedback to enhance the app later.
What do we need MVP?
Simple, to evaluate the product initially in the actual customer environment to know the problem that meets the goal. The feedback you get during the evaluation would help you revise the current product version per the customers’ wishes.
Want to find out how much it costs to build an eCommerce multi-vendor marketplace app development at Webnexs? Request a free quote!
Features in the multi-vendor marketplace business app
Payment Gateway
With the increase in cybercrime-related warning and the potential exposure of personal data, a secure payment gateway feature is what most buyers look for, and it is what stands out.
So a multi-vendor marketplace app should provide a payment gateway interface that securely connects customers to a payment system.
Product Comparison
According to the Google Consumer Barometer, 65% of people who buy things online look up information about what they want to buy before they make a decision. This is why it’s really important for an online shopping app to have a feature that lets people compare different products.
Simplifying the product search process in the app lures more customers by allowing them to research items within the multi-vendor marketplace without exiting the platform.
Customer reviews
Every review about the product on a marketplace app platform matters, and it is what counts for the buyers who read comments and reviews before they buy from you. Because online buyers always look for the opinions and reviews of others before making a choice.
If a product has many good reviews, people will probably buy it. So, create an online store app that shows product reviews to turn visitors into loyal customers.
Product images
Product pictures are the first thing that catches the attention of buyers even before they decide to buy. So, we recommend using features that allow for high-quality real photos rather than using generic images.
This would help the user to see the product in a real environment with closer details.
Discounts
Who doesn’t love a good discount? Cashback, special offers, and discounts are all attracting to shoppers. The reason why these deals are so great is because they help you save money when you buy something.
Therefore, a dedicated discount feature could be your chance if you add it to your marketplace app to push customers to complete the checkout process.
Conclusion
Building a new multi-vendor marketplace business app isn’t a big deal if you’ve expert developers with you. The only deal meant to take as a serious note is developing on the right idea for your business.
After years of research and analysis of successful stories, grab the opportunity that matches your wildest dreams.
Choose your team who can work hard and help you to kick-start success in your business dreams.
If you have a keen interest in certain facts of marketplace platform and application development, our experts are prepared to offer valuable guidance. Feel free to contact us!
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