Multivendor sites are getting more and more popularity day by day. If you have an online multivendor store then it can be a good source to your additional revenue apart from your own one. As the dimension of online marketing is increasing it can be the best source of income and also a standalone strategy in competitive market today.
Before you start a multivendor site here are the things you have to make clear about.
a) Product category selection: What kind product categories would you allow to sell on your site?
Supopose you want to launch an online store only for garments, then you may not allow selling cosmetic products or hardware products. So homogeneous product category type selection is an important thing.
b) Space allocation: Space allocation for vendors is an imprtant thing while building your multivendor site. You have to make limited number of vendors in your site. Otherwise it will affect your own business. Multiple vendors can also slow down your site.
c) Marketing strategy: Marketing is the ultimate goal once after you complete your multivendor store. You need a strong presence on social media and goal oriented SEO strategy can only make you money.
d) Attracting vendors: Your marketplace must have the visitor and customer base if you want to attract vendors to your site. No one will be interested in a site which has a lower customer base and absolutely low popularity. So making popularity and customer satisfaction are interrelated things while selling products online.
e) Deciding between building a site and using extension: You may be confused between whether yiu should build a brand new multivendor site or use an extension. Both are best solution from the point of view of your dimension of business and strategy of reaching customers. If you have already an online store in any of the platform like Shopify, Magento, WooCommerce,etc. you may simply use an extension enabling the same functionality. But if you are launching a new store and you want to provide multivendor selling functionality then building a complete multivendor store would be the best solution.
f) Cost: Cost is the most important thing while building a multivendor site. If you have a sound budget then building the whole multivendor site would be the best. Otherwise if you don’t want to flex your pocket then using an extension gave give you the extent of developing your business and generating more revenue.
Now I want to show you the way you can make money through your multivendor site:
a) Commission: You can allow your vendors to sell their products in condition of a commission on each product
b) Marketing for your vendors: Doing marketing for your vendors can add up to your income.This could be an additional income apart from your commission.