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5 Major Advantages of Multi Vendor Stores over Ecommerce Shops

Ecommerce | Anurag Gupta | Updated: 2017-10-05

5 Major Advantages of Multi Vendor Stores over Ecommerce Shops

The grand patronage that Amazon, Alibaba, eBay, and Flipkart have been showered with for years, is the testament of how well these E-stores have taken retailing & wholesaling by storm. Thanks to the multi-vendor architecture, these E-stores have adopted to serve their respective target audience and simplified the resourcing needs of buyers manifold. The multi vendor stores like Amazon have become one-stop-shop in true sense; they sell virtually everything from pin to plane and provide complete solutions under one roof. Though ecommerce shops have their own advantages, but their counterparts in the form of multi vendor stores have gained a cutting edge with their colossal perks and advantages. Let's learn how multi vendor stores have subjugated the ecommerce shops and emerged as the undisputed winners! The 5 major advantages of multi vendor stores over ecommerce shops are listed below:

Higher ROI

As the name suggests, multi vendor stores have a number of vendors registered with them, who sell multiple products through these stores to the buyers. This provides sales transactions a humongous volume, which platform-owners incentivize to attract more sellers with an aim to maximize the commission they charge on each transaction. Multi vendor stores have immense potential of generating high return on investment. In contrary, at ecommerce shops (single vendor store here), since single seller aims to sell one or more products, the scope of sales is relatively confined, thus lowering the potential of ROI generation.

Big Data

Size matters! Multi vendor stores are all about volume; and it is what contributes to the buildup of big data. No doubt, an invaluable asset for all ambitious organizations, Big Data substantially contributes in policy making and deciding future of the business houses. Since multi vendor stores can readily access the big data, they get an upper hand in analyzing the metrics related to competition & others for categories across the platform. Site administrators can leverage the big data to determine what policies can lead to healthy competition among vendors and what policies can work best for their own growth. On the other hand, ecommerce shops have to rely others for big data, which might be costly and can be likely irrelevant to not serve the purpose of a particular shop.

UX Dynamism

Consumer is the King and what else can fete a king better than an impeccable UX when king shops online? And, as I mentioned earlier too, multi vendor stores are all about volume, which means the clicks here are countless. More clicks hint more about the UX improvement and this is what multi vendor store owners tap the most to perk up the UX to serve buyers even better at the storefront. Whereas, the owners of ecommerce shops don't get as much opportunities as their counterparts get in the form of multi vendor stores to improve the UX. Moreover, multi vendor stores are more equipped in terms of expertise and team size, to support constant study, research and implementation of elements that sync UX with trends of buyer's needs.

Special & Whopping Discount

Multiple sellers, numerous buyers, endless transactions and whatnot! The economic viability at multi vendor stores provides the most desired push to banking / non-banking financial institutions for growth. They tie up, not only for the benefit of their own, but also for the benefit of store buyers. Thus, buyers are often presented with festive offers, seasonal offers, exchange and discount offers so that they get perks of buying online, and thereby profit machine keeps propelling. The lucrative deals and discount offers coupled with impressive exchange value are what buyers seek in the present scenario. Unlike this, since ecommerce shops lack numbers, their deals and offers aren't as sizeable as of the multi vendor stores are.

Least Warehousing Troubles & Easy Shipment Tracking

Warehousing and product distribution can pose a great challenge, especially when voluminous trade transactions are the main characteristics of the business ecosystem. However, multi vendor stores have their own solution to beat the odds of this challenge. They fulfill the needs of buyers with not just a single warehouse, but there are multiple warehouses and delivery partners involved in the supply chain. No matter how diverse a product base can be, there is always timely and uncompromised delivery of products, purchased from multi vendor stores. Additionally, since these platforms are backed by heavy investment, they provide superior product tracking option to buyers so that they can keep an eye on shipment's current location, and accordingly plan the receiving end. Ecommerce shops comparatively have a limited budget, thus aspects related to warehouse and shipment are not robust as that of multi vendor stores.

Not just the above, the multi vendor stores are being increasingly appreciated by seller and buyers alike for many other advantages too. They are in trend and with their potential to generate immense profits these stores promise site-owners a better future, which is otherwise quite hazy in the case of once rage ecommerce shops.

3 thoughts on "5 Major Advantages of Multi Vendor Stores over Ecommerce Shops"

  • Dai Software
    20 September, 2021 at 11:25 am

    Hey, very nice site. Multi vendor stores have immense potential of generating high return on investment


  • Dai Software
    16 September, 2021 at 4:49 pm

    Thanks for sharing the post! E-commerce is a booming industry and has occupied a big share of shopping nowadays.


  • Zuan Technologies
    02 May, 2019 at 7:38 am

    Great Post! thanks for sharing


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