Due to the enormous usage of the internet all over the world, the ecommerce industry has seen a drastic growth globally. In the USA, the expected ecommerce sales in 2019 are $548 Million.
Isn't it quite interesting?
Let me confess you another specialty here. Out of many multi-vendor marketplaces, Amazon and eBay have captured 60% of the USA's ecommerce market. So, do not worry about the downfall of the multi-vendor marketplace. It may never happen.
Obviously, not now!
If you dream to build and run a multi-vendor marketplace like Amazon, this article will show the way to your dream destination.
Know about Multi-vendor market place:
A multi-vendor marketplace is where diverse sellers sell their own products by creating their profile in the market place. The sellers may manage their own warehouse, logistics, products, etc. Instead, the owner of the place can also have a warehouse inventory to stock some of their products to be directly shipped to the customer. It purely depends on their choice. For each product sold in the marketplace, the owner receives certain percentile of the amount as a commission.
Multi-vendor business categories:
To create a multi-vendor marketplace like Amazon and Alibaba, you need to have a clear cut idea about the types of multi-vendor business model.
B2C Multi-vendor business:
B2C is Business to Consumer which refers to the transactions which happen between the company and the consumers who purchase the product. The top examples are Amazon, Flipkart.
B2B Multi-vendor business:
B2B is Business to Business which refers to the commerce between two businesses. The best examples are Walmart, Alibaba.
Amused about the revenue generation of the multi-vendor market place?
Any business, at the end of the day, needs only profit. So, to generate the revenue, the multi-vendor market place is developed in such a way that, it benefits both the owner and the seller.
I can hear you guys asking me how?
Let me brief you how this perfectly developed multi-vendor marketplace will generate revenue.
- Through commission on every sale of the product.
- Partnership affiliation
- Banner ads.
- Google Adsense Ads.
- Yearly and monthly subscription fee from sellers and buyers.
- Promoting products on the home page.
However, the revenue generated by the multi-vendor marketplace at the end of each year is increasing at peak rate.
Future of building an online ecommerce website like Amazon:
I hope you are curious enough to know about the opportunities for creating an ecommerce multivendor website like Amazon. Let us see the pros of making the website like Amazon.
- You no longer need to maintain your own inventory to sell and manage the orders. Everything will be taken care of the vendors who sell their product on your ecommerce website.
- It reduces the cost of managing a huge warehouse and it will make you safe with no financial risk because you don’t invest in an inventory.
- Shipping is taken over by the vendors and you can sit relax and enjoy the ROI for each sale.
- Funds for growth and development is easily attainable.
- Easy Expansion of supply when you build an ecommerce website like Amazon.
- Just shake hands with the new vendors and start seeking new products and new categories from the ecommerce website like Amazon.
- Small vendors with inventories will benefit when they sell in the ecommerce platform like Amazon.
- Fetch more buyers to your side when you create a successful multivendor ecommerce website like Amazon
- When there are more options to shop from and when the shopping experience is made easy, you will see a huge increase in the customers for your ecommerce multi-vendor website.
- This massive increase in buyers will encourage more vendors to register on the multi-vendor website to sell their products.
- When you build an ecommerce website like Amazon, it's easy to promote your site.
- The sellers will obviously become your foremost promoters. Those who sell exclusively in your ecommerce multi-vendor market place will share news on their listings.
- Making a website like Amazon will help you gain more users through social media promotion. Scaling your marketplace to the extent you see a greater ROI.
Must have features for developing a multi-vendor market place:
Developing a multi-vendor market place is a complex process and it requires a host of features to smoothly run it. After creating the marketplace, you need to test in a real environment for any bugs.
Features for Admin:
|Add Multiple sellers||Easy addition of any number of sellers into the multi-vendor market place.|
|Set up Commission rates||The Admin can fix the commission for different products and vendors depending on the price, quality and, demand.|
|Accept/Reject products||Admin has the privilege to accept a product or reject it which is uploaded by a seller.|
|Get Notified||When a seller is added in the market place, the admin gets a notification regarding the same.|
|Manage Transactions||Manages the transactions os the seller and generates an invoice to them.|
|Tax calculation||Using the robust tax engine, you can calculate the hierarchical tax.|
|Product Management||Maintain a check on the products sold by the sellers.|
Features for Vendors:
|Dashboard||Robust dashboard to know about their sale, profit percentile, reviews, etc.|
|Simple Registration||Registration of new vendor in the multi-vendor market place is very easy.|
|Order management||Manage the previous orders to be processed, the current set of orders, profit percentile of the orders sold.|
|Product management||Vendors can obtain information such as out of stock products, products that are fast moving, etc.|
|Shipping management||Generating invoice, accurate and on-time delivery of the product to the customers can be managed by the vendors efficiently.|
Features for Customers:
We know about the importance of the customers in a business. To make a multi-vendor market place like Amazon, the customers should be given the utmost care. Here is the list of features for the customers.
|Order Tracking||It assists to make your customer know about the status of shipping of their product. They can know when the order is approved, processed, dispatched, shipped and out for delivery.|
|Easy Navigation||It facilitates the customers to navigate from one point to another point inside the multi-vendor market place. This shopping experience, on the whole, makes more pleasurable to the buyer.|
|Easy Checkout||Keep the check out page very simple and precise. It will increase more sale and ROI with proportional traffic influx.|
|Multilingual/Multi-currency support||These features will help the customers of any locale to shop effortlessly in their local language and pay for the product purchased with their preferred currency.|
|Multiple payment options||Give your buyers the freedom to choose the payment method they prefer. Through this, they would love to shop with you more and will eventually land up in check out page.|
After having a clear idea of essential features to build an ecommerce website like Amazon/Flipkart, you need to know how to start building a multi-vendor e-commerce business like Flipkart.
How to Build an ecommerce website like Amazon?
To lay a foundation stone for your online ecommerce marketplace like Amazon, you need to focus on the following points.
1. Perform extensive research:
Before starting to make an ecommerce website like Amazon, you need to have a thorough knowledge of the target audience. Know their needs and the products that will attract them to shop for with you in the future.
2. Install a powerful server for site hosting:
If you are planning to build an ecommerce multi-vendor market place, be cautious to choose your right server to host your ecommerce website. To manage the erratic traffic from customers from across the geographical region, deploy a robust server.
Instead of using the local servers, you can switch over to the cloud-based server to store and manage data.
Why cloud server to create a website like Amazon?
- Cloud Servers are** Budget-friendly**
- They are simple to set up and install.
- They can become accustomed to any number of traffic and reduces downtime.
- You can access data from anywhere through cloud servers.
3.Select the Domain name for the multi-vendor marketplace like Amazon/Flipkart that can connect easily with the target audience.
The domain name reflects your website. The customers should be familiar with the domain name since it will make them visit your ecommerce website like Amazon more frequently.
Have these in mind while selecting a domain name to make an ecommerce multi-vendor website like Amazon.
- Select a domain name that is short
- Don’t choose domain names of the familiar domain names since it will make trademark issues.
- Always use the .com extension.
4. Use readymade scripts to create an ecommerce multi-vendor marketplace like Amazon
- If you have extensive knowledge on the technical side, you can start from scratch while developing an ecommerce website like Amazon.
- If you need a multi-vendor website to launch very sooner, you can opt readymade scripts since it will have the following pros.
- These scripts will help you to build a multi-vendor market place like Amazon within hours.
- To match the needs of the customer, the features can be added and customized.
- if you create the multi-vendor ecommerce website like Amazon with a readymade script, your website may incur top ranking in the search engine since these readymade scripts are SEO friendly.
- The companies offering readymade scripts to build the website like Amazon will provide 24/7 support to its customers.
Launch your multi-vendor market place as everyone knows:
To make everyone aware of your ecommerce website, you need to take pains to make your brand reach the target audience.
Here we list some methods to market your perfectly build multi-vendor ecommerce website like Amazon.
- Radio marketing
- Print advertising
- Email marketing
- business cards
- Social media
- Guerilla marketing
- Television Ads
6. Harness the power of Digital marketing methodologies to increase the traffic influx while making multi-vendor ecommerce website like Amazon:
Bringing in customers to your marketplace after the website is loaded with products is a crucial task. Let us see some of the online marketing strategies to make your ecommerce website aware of.
SEO: Research the keywords, know your competitors and make your ecommerce website to reach the top ranking.
Social Media: Promote your products through social media. Update the new products added in your ecommerce website to the customers and inform them about all the milestones in your business.
Email Marketing: Notify your customers about the product arrival, Offers, and discounts so that they are frequently updated about the status of your ecommerce website like Amazon.
In a nutshell, developing a multi-vendor ecommerce website like Amazon from the scratch is a cumbersome and resource intensive task. While making the same ecommerce website from the readymade solution can make it launch in no time and resource. Make a wise decision and build your multivendor website and make a huge profit. We BigZiel Technologies have grown by leaps and bounds in the years and have a circle of customers because of our fierce dedicated team and 100%customized products with product delivery in no time.