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Single Vendor Vs. Multi-Vendor Marketplaces- Which One to Choose


Single vendor and multi-vendor marketplaces help businesses increase their revenue. They provide an upper edge to businesses that offline stores don’t provide. Online Shopping app provides ease to customers and one can place orders 24/7. Practically, your business is open every day without any breaks.


The Future of Ecommerce

The future of e-commerce is bright. Vendors know the importance of coming online for increasing revenue. The e-commerce data states that as many as 40 percent of users worldwide have purchased products online. When businesses shift to online marketplaces, there is no looking back. Ecommerce is going to give you more than you expect.

Single Vendor and Multi-Vendor Marketplaces


Single and multi-vendor marketplaces are two different things. In this article, we will clear your doubts about both, and with the pros and cons before you; you will be able to choose the one right for your business.


Single Vendor Ecommerce Site


A single vendor e-commerce site is the one where its owner is the only one who is selling his products. Other people can’t sell their products. Single vendor targets a particular set of audiences. For example, a single vendor selling footwear or watches. Examples of single vendor marketplace are Veromoda, cloth face mask.


Multi-Vendor Marketplace


The multi-vendor marketplace is the one where more than one vendor sells its products. Take it as a mall where there are different shops. Here, the owner of the marketplace is only responsible for managing the whole site. It’s his duty to provide the needed features, shipping, inventory management, receiving orders, etc. In return, the owner of the marketplace gets a certain percentage from vendors’ earnings. 

You can find totally different items, like electronics, clothes, beauty products, etc. in one place. Airbnb, Amazon, Flipkart are examples of multi-vendor marketplaces.


Key Differences Between Single Vendor and Multi-vendor Marketplaces



Growth Potential


If we compare both single vendor and multi-vendor marketplaces, multi-vendor marketplaces are usually less risky. In a multi-vendor marketplace, you don’t stick to one niche. Since there are many vendors, there are low chances of loss. However, the problem is sometimes sellers play fraud with the customers as well as the marketplace. Chances of cheating the marketplace in the multi-vendor marketplace are higher. Online shopping app is used by many vendors to increase their reach.


A multi-vendor marketplace requires an investment of time and money. When the investment doesn’t yield results, it is disappointing. In a single vendor marketplace, you have a target audience, you focus on one niche. If you already have an offline store, customers already know you and there are high chances of success.


User Interface


Whether it is a single vendor marketplace or a multi-vendor marketplace, user experience matters. Both vendors and users should have a seamless experience. There should be features that are solely for users to improve the experience. Similarly, features that cater to the needs of buyers help them have a positive experience in the marketplace. Make sure that sellers can easily upload and display their products and buyers can search, select, and make the purchase easily without any glitches. In a single vendor marketplace, it becomes easier to search for products as there is only one category; in a multi-vendor online marketplace app, advanced search and sorting features are a must.


Development Cost


It requires a thoughtful investment to design and develop both single vendor and multi-vendor marketplaces. If you are a small retailer, it is better to invest in an online store. Online store builders like MagentoShopifyWoocommerce, etc. can help you in this regard. In a single vendor marketplace, money comes straight to the vendor's pocket as he doesn’t have to give commission to anyone.

On the other hand, multi-vendor marketplaces have a complex infrastructure and high development costs.


Revenue Growth


There is a lot that you have to do like create SEO-friendly content, social media marketing, etc. Quick income doesn’t happen in a single vendor marketplace. A lot of work goes into increasing revenue in both cases. But the multi-vendor marketplace has an upper hand.


Both single vendor marketplace and multi-vendor marketplace are beneficial for your business. The major benefit of a single vendor marketplace is that there is high compatibility between users and the seller. Also, it is easier to build a strong communication process in a single vendor marketplace, also there is the ease of faster entry into the market. Another great benefit of a single vendor marketplace is low development cost.


Read More: A Complete Guide to Building a Multi-Vendor Ecommerce Marketplace App


Final Words


Starting an e-commerce business is a dream of many budding entrepreneurs. There are many benefits like global reach, 24/7 open window, etc. If you are planning to start your e-commerce business, the e-market app development team can help you make an awesome app with all the necessary features that will provide a great experience to your customers.

Jeevanjot Kaur

Jeevanjot works for Cerebrum Infotech. Her educational background provides her with the right mix of understanding technology and writing about it in easy-to-understand words.

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