It comes as no surprise and mere coincidence that most of the richest people in the world are the owners of successful E-commerce entrepreneurs. We can make a list including Jack Ma (Alibaba), Pierre Omidyar (eBay), Jeff Bezos (Amazon or the Bansal brothers (Flipkart) and they all prefer a multivendor approach to earn benefit by connecting sellers to customers.
Marketplace model, if you have proper operating plans, the benefit you can achieve is unimaginable. Besides the reason that marketplace operators need the least possible time to cross their initial inflection point, one more important reason is that expanding your marketplace is cost effective. Unlike the inventory-based model, your marketplace scale will increase when more and more vendors set up their account and start adding new products.
So what marketplace exactly means?
The marketplace is where both sellers and buyers take part in. A seller can choose the categories for which he wants to sell his products and can set up his own inventory. Many stores registered will create a huge marketplace and the combined inventory of all the sellers that have signed up will be the total inventory of the store. Operators will earn benefits from each successful transaction, we usually call commissions, risk-free revenue.
The role of the operator is providing a good environment for both sellers and buyers in terms of the User interface, User experience, Dispute resolutions, Terms and Conditions, Security, and Website Marketing.
10 fundamental features in Magento marketplace theme to build a complete multistore website:
- Magento marketplace theme supports a robust vendor signup mechanism, it means that all the data including the Business ID of the vendors and precise location for order pickup will be gathered.
- Every registered vendor should get a unique URL for the shop.
- Vendors can upload multiple products to enrich product list in their store but the operator still has full right to approve or not. This feature from the Magento marketplace theme is to help the operator ensure sellers and their business are going the right way as they want.
- Vendors have an option to request the creation of a new product category if needed from the website admin.
- Operators have the right to create different types of products, that is so important for the shopping experience. It will include Simple product, Configurable product, Best seller product, Bundled product, Grouped product, Virtual product, and Downloadable product, etc.
- Vendors have the ability to create an invoice, shipment and Refund memo for orders and of course, all these behaviors will be made under the approval of the operator.
- Operators can create an option for vendors about whether they want the shipping option provided by the website or they want to ship manually.
- Operators are able to define their commission based on per order value or different levels of commission for each vendor.
- Operators have access to detailed sales reports for each vendor, along with an option to make payouts manually and automatically
- Magento marketplace theme supports multiple payment methods and all of them are secure ones