A multi-vendor system as understood by layman is the online platform, which has many sellers instead of one. This would be the briefest information that people usually have about it but there is much more to know about a multi-vendor store.
First of all it’s different from a single seller store but has all the features of it. What makes it unique is the availability of too many sellers on one platform. Such a store has an automated functionality that makes sales management of various businesses simple, although they exist on one domain.
Here are few other points to note about a Multi-vendor shopping cart:
- It is more like online shopping mall where customers select items of different sellers in one cart and buy without bothering about their individual business names.
- It offers more options than a regular ecommerce business as the availability of sellers multiplies products count too.These shopping portals get high traffic due to their large scale.
- Every member can manage his account independently with administrator login that is provided by the site owner.
- The sales, reviews, discounts and customer feedbacks are transferred individually to vendors’ account.
- Apart from complete ecommerce functionality the system automatically separates sales, reviews, feedbacks of various vendors.
- All the products from all sellers appear at a common place but purchase is processed to the related seller’s account.
- Multi-vendor store functionality is such that one can receive real time updates regarding all the transactions made under one’s name.
It doesn’t take much to own a store like this. You just need a custom solution to develop multi-vendor platform that can serve to various needs of various sellers.
How the website owner earns?
The owner of a multi-vendor store earns through the cost that is charged from vendors for renting out selling space on his platform. Sellers pay it happily, as it is less than what is charged for creating a new independent store, moreover it is painless for them to invest in such online business. Added to this, there is a fixed transaction fee that the website owner can charge for each transaction made. It’s up to him what limit he sets; usually it is the slightest part of sale made by participating vendors.