You’ve picked a focus. You’ve tapped your vendors. You chose an ecommerce platform. You’re well on your way to launching the stationery marketplace of your dreams—except you find your ecommerce platform isn’t equipped to run your multi-vendor shop. Maybe it can’t split payment between you and your vendors or it doesn’t allow vendor accounts, so they can’t manage their products and sales. That’s where a multi-vendor marketplace platform comes in.
With the right software, you can turn ecommerce stores into online marketplaces, hosting a variety of third-party vendors and products without the need for complex coding. It also means there’s no extra labor on your end—vendors can run their shops without needing your help.
Learn how to choose the right platform to get your marketplace up and running.
What is an ecommerce marketplace?
An ecommerce marketplace is a website where multiple vendors sell their products or services in one place. Think of it as an online shopping mall; while multiple stores share the same space, they are independent from one another. Marketplace owners provide a similar experience across the website, though they typically don’t deal with inventory; that falls on the individual vendor.
There are two main types of online marketplaces: horizontal and vertical. Amazon and Shop, for example, are horizontal ecommerce marketplaces where a wide variety of brands sell products across different categories. Think of these as one-stop shops where you can get anything from a winter coat to power tools. Vertical marketplaces, like Poshmark, sell the same or similar types of products. Others, like Fiverr, sell services.
But not all marketplaces are big players. For example, WellRabbit is a boutique marketplace for doctor-vetted supplements. To create your own multi-vendor marketplace, you could hire someone to code the entire project from scratch, use plug-ins on top of your ecommerce platform, or use a multi-vendor ecommerce platform.
What is a multi-vendor ecommerce platform?
A multi-vendor ecommerce platform is a type of software that lets you set up a marketplace for the sale of products or services from multiple businesses—all on one website. An ecommerce platform alone may not have the necessary capabilities to run a marketplace.
For example, a multi-vendor platform offers individual portals so each vendor can manage their stores. When a shopper makes a purchase, the vendor gets paid, minus the fee or percentage of the sale that the marketplace collects.
Key considerations when choosing a multi-vendor ecommerce platform
Marketplace websites are generally more technically complicated to set up than single-vendor ecommerce stores. A multi-vendor ecommerce platform plug-in or provider can handle this back-end work for you. Consider these key features when selecting your multi-vendor marketplace platform:
User-friendliness
A user-friendly platform makes it easy to set up and manage your shop without technical expertise. Look for a marketplace software platform that has an intuitive interface, integrates with your existing systems, and simplifies the vendor registration process. Some might also connect you to vendors, making setting up your own online marketplace a cinch.
On the buyer side, pick a platform that lets you create an uncluttered, easy-to-navigate, and well-organized site. A user-friendly interface makes the shopping experience more enjoyable for site visitors.
Payment
Your payment system will affect whether a vendor decides to sell on your marketplace. Will your chosen platform automatically collect fees? How quickly will your vendors receive payments after customers purchase things? When exploring your options, ensure you pick a platform that doesn’t add more work for you or your vendors.
Additionally, look for a platform that supports multiple payment gateways (like Apple Pay, Square, and PayPal) and multi-currency support so you can cater to a wide range of customers.
Analytics
Robust analytics can tell you about the health of your ecommerce business. Accurate, real-time data about on-site visitors, profit margins, shipping and fulfillment logistics, vendor performance, consumer demand, and more will reveal whether you need to change strategies or stay the course. For example, if your product bundle ads increase visits to your landing page, you might feature those bundles more prominently on your site.
Not every platform provides the same type of analytics, so know what goals and metrics matter most to your business to help you decide on a platform.
Scalability
Scalable online marketplaces grow with your business. Decide whether a multi-vendor marketplace platform is a comprehensive solution by looking into vendor limits, onboarding processes, shipping support, advanced inventory management, and other essential features.
Top multi-vendor ecommerce platforms
Whether you want to create the next niche makeup platform or online clothing outlet, these are the best multi-vendor marketplace platforms to make your dreams a reality:
Multi Vendor Marketplace
Built specifically for Shopify users, Multi Vendor Marketplace is an app you can download from the Shopify App Store to shift your current ecommerce shop into a multi-vendor store. This application works for several industries, from rental marketplaces to auction sites, giving you the flexibility to dive into any market. You can integrate shop profiles from major marketplaces like Etsy and bulk upload inventory from vendors via CSV files. Plus, the ChatGPT integration can help with product description copy.
Pricing: Multi Vendor Marketplace offers a Basic plan with three sellers for $15 per month, an Executive plan with 10 sellers for $40 per month, and a Pro plan with unlimited sellers for $60 per month. All come with a 15-day free trial.
CS-Cart Multi-Vendor
CS-Cart Multi-Vendor supports 26 languages and multiple payment gateway options. It caters to various industries, including automotive, apparel, shoes, and art. You can customize admin permissions to allow specific users or groups to access certain features, letting you better manage multiple sellers.
The initial setup wizard provides step-by-step instructions for new vendors, and the software has a built-in messaging system to easily communicate with buyers and sellers.
Pricing: CS-Cart offers a Marketplace Builder On-Premises plan, which has no transaction fees or restrictions on the number of product listings. Pricing plans range from $49.99 to $249.99 per month (billed annually). Cloud plans range between $95 to $295 per month (billed monthly).
Marketplacer
Marketplacer is a flexible multi-vendor marketplace solution geared toward global sales. It is compatible with many ecommerce platforms and boasts multiple options for payment processing. Marketplacer has customizable storefronts and an array of application programming interfaces (APIs). Additional marketplace functionalities include inventory management, a review system, and mobile optimization for those looking to shop or manage their store via smartphone.
Pricing: You can reach out to the Marketplacer sales team to sign up for a demo and discuss pricing options. Costs include a one-time implementation fee based on marketplace complexity, a monthly fee, and a percentage of your total transaction volume.
CedCommerce
Designed to integrate with popular ecommerce platforms including Shopify, WooCommerce, and Magento, CedCommerce lets you transform an existing store into a successful multi-vendor marketplace. With customization top of mind, you can tailor vendor registration, commission rates, and shipping logistics to suit multiple sellers.
Pricing: CedCommerce’s pricing depends on your ecommerce platform and the size of your marketplace. Schedule a call with CedCommerce’s sales team for a quote.
Yo!Kart
Yo!Kart is a good multi-vendor marketplace software option if you want to start a vertical marketplace. Its dashboards help with managing multiple vendors, tracking ads, and customizing storefronts to match each brand’s aesthetic. Additional features include bulk product uploads, multilingual support, integrated payment gateways, and a dedicated mobile app to manage your marketplace.
Pricing: Yo!Kart’s offers lifetime packages starting at $999, though they frequently go on sale.
Nautical Commerce
Nautical Commerce is a user-friendly platform designed to help you create and manage engaging online marketplaces. It supports essential marketplace features like multiple currencies, languages, and payment gateways so you can easily onboard multiple independent sellers from different countries. Its vendor management options include individual vendor contract templates, product approval systems to manage what gets sold, and multiple invoice methods to pay out vendors.
Pricing: Nautical Commerce offers a free trial to familiarize yourself with features. Contact its team to discuss pricing.
Multi-vendor ecommerce platform FAQ
Which ecommerce platform allows multiple vendors?
Many ecommerce platforms, including popular options like Shopify, allow you to transform your site into a multi-vendor marketplace. If you have a Shopify store and want to open it up to multiple vendors, use the Multi Vendor Marketplace app.
What is multi-vendor ecommerce?
Multi-vendor ecommerce is an online marketplace model that allows multiple businesses to sell their products or services within a single platform, letting customers browse multiple vendors while checking out with one cart.
Is Shopify good for multi-vendor ecommerce?
While Shopify doesn’t have built-in multi-vendor functionality, you can use third-party, multi-vendor platforms and apps (like Multi Vendor Marketplace) to convert your online store into a multi-vendor marketplace.
