Author: NESTICT INFOTECH
Ultimate for SMEs and Corporate Enterprises in Kenya
On the face of it, a marketplace may look like a complex arrangement, with different stakeholders and a substantially large scale of operation. After all, some of the most successful companies, like Amazon and Uber, use multi-vendor marketplaces to let vendors list and sell their products or services online from one (very popular) platform. However, if anything, the scalability factor of marketplaces works in favor of the startups.
A multi-vendor marketplace can be described as an online platform where multiple sellers can sell their products or services. The owner. The seller and the customer are the three prime stakeholders in this type of setup.
- The Owner: The owner plays a crucial role in finding the right sellers for the platform, and attracting the relevant customer base. The owner benefits from the commission they make on every sale, as well as from the fact that they do not need to maintain an inventory. Additionally, they bear a reduced burden of managing the sales operation. The primary focus of the owner is building a powerful and trustworthy brand that attracts both sellers and customers.
- The Seller: The seller gets access to a large customer base through a multi vendor marketplace that helps improve their brand awareness and increases sales. Multi vendor marketplaces also help sellers upsell and cross-sell their products and turn potential customers into paying consumers.
- The Customer: Customers find a wider variety of products on multi vendor marketplaces than on single seller stores. The option to choose from a wide range helps the customer make better choices.
