Building a marketplace app can help you earn fortunes as this concept is getting significant popularity in the eCommerce industry. It is the right time for any enterprise or startup to build a Shopify marketplace app for working on a rewarding concept.
The recent trends show an unprecedented rise in user interest in the marketplace. The users can hunt great deals on products due to competition prevailing among the sellers. Today we will try to understand the concept of Shopify multi-vendor marketplace and different types of Shopify multivendor apps.
What is a Shopify multivendor App and, how does it work?
A Shopify marketplace app refers to a mobile-based platform that facilitates the buying and selling of products and services. Mobile apps of eBay and Amazon are popular and successful examples of marketplace apps. When you use Shopify to build a marketplace, it is called Shopify multi-vendor marketplace.
The owner of the Shopify marketplace app provides a platform, thus numerous sellers can list the products for consideration by users on that marketplace. The marketplace owner earns a commission on every sale happening on his marketplace.
Shopify multivendor app is best because you don’t need to own any inventory or maintain warehouses for the products. The sellers can manage and supply the products after receiving the orders.
The terms and conditions for sellers and users can differ from marketplace to marketplace, but all of them work with the sole motive of promoting the interaction of sellers and buyers. It is the responsibility of the marketplace owner to offer a payment gateway and shopping cart to ease transactions happening on it.
Important features of Successful Shopify Marketplace apps
If you wish to get success with your Shopify marketplace app, your app should be able to deliver the following features for its users:-
- A custom seller dashboard to manage inventory and invoicing.
- A custom dashboard for users to manage their orders and returns.
- A payment gateway to facilitate the payments for the products bought by users.
- A shopping cart to add the products that users wish to purchase.
- Customer support to handle queries of sellers and buyers.
- Analytical dashboard to monitor the performance of sellers.
- Reviews and rating system to help users find reputed suppliers.
What are the different types of Shopify multivendor apps and their features?
If we restrict our parameters to the target audience itself, there are three types of Shopify marketplace apps that you can build. Below are those types and real-world challenges that these marketplaces face.
Business-to-business Shopify Marketplace App
B2B Shopify multi vendor marketplaces facilitate the interaction between two businesses. These platforms help the businesses interested in wholesale and bulk selling to reach the business who wish to buy such products.
For example, these days many retail businesses buy bulk quantities from marketplaces like Alibaba or AliExpress. Below are the major features of the B2B Shopify marketplace app:-
- These marketplaces address the needs of the retail businesses by connecting them with wholesale suppliers.
- They tend to use the expanded sales channels, therefore, delivering better results.
- These marketplace apps don’t require huge upfront investments thus not having much financial burden.
- They enable businesses to start selling in the quickest possible manner.
Business-to-customer Shopify multivendor app
The B2C Shopify marketplace includes two parties, sellers and customers. These platforms facilitate the interaction of different business firms registered as sellers with their potential customers. One of the best examples of a B2C marketplace is Amazon. You can notice that there are numerous sellers. Below are some of the prominent features of a B2C Shopify multi vendor marketplace:-
- B2C Marketplaces are dedicated to serving the end customers with products from multiple sellers.
- Different sellers may offer similar products to the customers therefore you need to accommodate multiple categories.
- The seller uses his dashboard because he needs to update the inventory and invoicing.
- These platforms generally work on a per-sale commission structure, therefore, making it the best revenue model.
Peer to peer Shopify multi vendor marketplace
Such marketplaces are also known as customer-to-customer marketplaces because they are meant for connecting individuals with similar needs. Esty is one of the most prominent P2P marketplaces these days therefore it can become the inspiration for your Shopify marketplace app too. This marketplace model doesn’t focus on building long-term relationships because the role of users can change from time to time. A person who is a buyer today can become a seller in the future.
These were the major types of Shopify multi vendor marketplaces that you can build for your business in 2022. Building a marketplace is a complex process, thus you need to have a Shopify expert by your side for a successful Shopify multivendor app. Always choose professional and certified services for the development of your marketplace.
It will help your Shopify marketplace app because you can identify the latest features and functionalities for surviving the competition. It is recommended to avail free consultations from Shopify experts before formulating plans for marketplace development.