Multi vendor marketplace vs single vendor marketplace

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Presentation Description

The difference between the 2 different types of marketplace businesses - Single vendor & Multi vendor marketplace


Presentation Transcript

Multi-Vendor Marketplace Vs Single Vendor Marketplace:

Multi-Vendor Marketplace Vs Single Vendor Marketplace


INTRODUCTION E-Commerce has become the new revenue sector that everyone wants to be a part of, and we can’t blame them. In 2014 this sector showed an annual income of $1.3 trillion and the estimated GDP for 2021 is $4.5 trillion, which is an astounding 246.5% growth in 7 years.


TYPES OF MARKETPLACE There are two types of marketplaces that you can create: single vendor marketplace and multi-vendor marketplace. As the name suggests, a single vendor marketplace hosts only one vendor and related products Whereas, a multi-vendor marketplace hosts more than one vendor and their products.

Required Resources :

Required Resources A single vendor marketplace is simple to build as you have to cater to the needs of only one vendor. The early investment will be fairly less. A multi-vendor platform , on the other hand, is a bigger investment. This is understandable as you will be catering to the needs of more than one vendor.


Complexity Single vendor marketplace, the workings of the platform, a.k.a., the website is fairly simple as the software doesn’t have to be robust to function for a single party. Multi-vendor marketplace, the complexity is heightened, as the software in use needs to be robust to house the numerous vendors and be customized as per their needs.


Training As the single vendor marketplace software is simpler, the staff will require lesser training. Staff using the multi-vendor marketplace software will require very detailed training in the subject in order to understand the intricacies of the software.

Safe Business:

Safe Business A single vendor marketplace owner needs to make smart decisions when backing only one vendor. You will have to do extensive market research before you get into the same boat with them. A multi-vendor marketplace owner is on safer shores, as a wide range of clients is working with them. In case one of them is not doing well, there is always someone else who is doing better, thus ensuring guaranteed profits.

Long-Tail Marketing:

Long-Tail Marketing Long-tail marketing looks into the profit retailers make from the least popular products on the stand. A single vendor has only limited products to showcase. While the multi vendor has a diverse product portfolio. Which makes multi vendor marketplace to remain in profit.

Management of Resources:

Management of Resources A single vendor marketplace will be a small enterprise, the factors like Inventory, order management and shipping orders will be simpler to manage. Multi vendor marketplace, due to representing multiple vendors, the management of inventory, order placement and shipping requires more astute attention.

Advantage of single vendor marketplace :

Advantage of single vendor marketplace Costing control & management isn’t difficult with a single vendor marketplace business. The business flow can be smooth, seamless, and effortless with just a single vendor. The management of deliveries and schedules can be timely done. With just one supplier, the business relationship will be well maintained.

Advantages of multivendor marketplace :

Advantages of multivendor marketplace You can still run your business even if one of your suppliers has difficulties delivering. Demand for products can be adjusted easily with multiple vendors. You can create a healthy competition among the vendors, so that every vendor comes out delivering their best, ultimately this builds your business credibility.

Final Words:

Final Words Today, eCommerce giants like Amazon, Alibaba, eBay are all multivendor marketplace businesses. Popular & successful companies like Beardbrand and I am Alpha M are all single vendor marketplace businesses. These companies have developed their brand in their own style and it does not matter they are single vendors or multivendor marketplaces. Choose what suits you best and build your business brand.


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