Multi-vendor marketplaces are among the best business ideas you can work on in 2022. You can earn a good commission using your Shopify marketplace app even without owning inventory. Though the idea of selling products from multiple vendors seems lucrative, it is not as easy as it looks. Setting up a Shopify multi vendor marketplace and competing with giants like Amazon and eBay can turn into a pain point.
Despite the competition, thousands of entrepreneurs try their luck with Shopify’s multi-vendor marketplace. Unfortunately, only a handful of them can survive and reap profits with their marketplaces. Today, we will discuss the details about the Shopify marketplace app and its benefits for you as a marketplace owner.
What is a Shopify multi vendor marketplace?
Shopify is indeed a great platform to set up an eCommerce business. Like most other eCommerce platforms, Shopify also supports multi-vendor functionality. You can develop a Shopify marketplace app to allow multiple vendors to sell their products using your marketplace platform.
Interestingly, the most noticeable part is the presence of numerous independent vendors. They will however sell products, create invoices, and track shipping using a single Shopify dashboard. The dashboard allows them to monitor sales, orders, and other aspects crucial for their business. Below are features of a Shopify Multi vendor Marketplace:-
- Individual control panel for each vendor selling products using your Marketplace app.
- Easy onboarding process with features to add products with ease.
- Payment gateways to support the payments made by the customers.
- Analytical tools to monitor the performance of individual vendors.
- Feature for reviewing and rating the vendors and products.
- Customer care support to ensure that every grievance of customers can be handled.
- A search box, filters, and other functionalities to ease navigation.
Why choose Shopify marketplace app?
With around a 30% market share, nothing can work better for your multi-vendor business. Shopify is gaining significant popularity due to numerous tools and extensions that make setting up a store a breeze. Numerous Shopify development agencies can help you develop your own Shopify multi vendor marketplace.
With so many features and tools, it helps you to dedicate more time to forging business strategies. An experienced Shopify developer can help you develop a marketplace app powered by all the latest features and functionalities.
Benefits of using Shopify marketplace app
No need to own any inventory
You can plan to build a Marketplace app, however, you will be happy to know that you don’t need to own any inventory. The products are listed by the vendors and they are responsible for managing the products they wish to offer on your marketplace. However, you can earn revenues even without owning the products.
However, you can list the products you wish to sell along with the products offered by the vendors. If you observe the current trends on marketplace giants like Amazon, you will find that they are selling products under their brand name too.
Commission per sale
Are you wondering how you make profits without having any products to sell? Ironically, the concern is genuine as there is hardly any business that allows you to make revenues without your products or services. However, marketplace apps are an exception to it.
You will be liable for a fixed or variable commission for each product that your vendor sells using your marketplace. However, you can decide your margin and can even manipulate it for different vendors.
No worries about shipping and returns
One of the best parts about owning a marketplace app is that you don’t have to worry about the shipping or deliveries. You don’t need to invest in setting up delivery channels. However, all these things will be taken care of by your vendors.
The vendors listed with your Shopify Multi-vendor marketplace will be responsible for the delivery. However, you only need to connect the vendors with buyers and your work is done.
Analytical tools to monitor performance
You can integrate various analytical tools to monitor the performance of your Shopify marketplace app. By doing so you can identify the products that work best for your business. You can also know the vendors who perform well and motivate them to scale their product offerings for better revenues.
Multilingual and Multi-Currency Support
Multilingual and multi-currency support for multi-vendor applications is indeed one of the great advantages you are going to get. You can use these tools to target customers beyond political and geographical borders.
Easy scalability and product management
Shopify multi-vendor stores help in easy scalability and product management for better business results. However, you can hire a Shopify development company to add features that help scale your business without running into much trouble. By using the robust tools available at the Shopify app store, enabling you to manage the products and vendors easily.
These were some of the benefits that present a promising picture about investing in a Shopify marketplace app. If you are willing to set up a Shopify multi vendor marketplace, we will recommend using the services of a reputed Shopify development agency for it. Marketplace business is indeed haunted by tough competition, only expert developers can help you overcome the challenges that your app is going to face.