The arrival of multi-vendor marketplaces has brought changes in the global market. Many of the brands get global exposure along with huge competition. Today most of us buy things from online marketplaces. We depend on many multi-vendor marketplaces to buy products for our personal use, for home, business, as gifts, and many more.
An online marketplace is a digital marketplace platform with a website and app for better service. This is the place where several sellers and buyers connect with each other. Sellers offer numerous products and services. Buyers can purchase the products and can leave reviews. This is nothing that no one knows. More than that, online marketplaces are a dream come true for dealers and shoppers. This is the only place where you can find anything.
The key features that define a multi-vendor marketplace are:
- Sellers and buyers can trade through the same marketplace
- Buyers can purchase without leaving the website
There are many online marketplaces that act as advertising channels more than an online marketplace. From some marketplaces, users cannot make a purchase without leaving the website, while some marketplaces let users sell directly to the company.
In this article, I have focused on the marketplaces that consider buyers as consumers, not businesses. And the marketplaces that sell products, not services.
What types of online marketplaces are in the market?
Each online marketplaces are unique and offer different types of services to both buyers and sellers. In total there are 5 types of marketplaces on the market.
- On-demand: On-demand marketplaces are the most common marketplace for all services. It provides an instant response to customers. Some on-demand services include Uber, Grab, Handy, Postmates, Deliveroo.
- Managed: Online Managed Marketplaces are potentially the next great leap for the global job market and it is helpful in establishing user trust. For B2B and B2C eCommerce, a managed marketplace is the most important type of marketplace. The manufacturers and distributors offer their products on a platform that is managed by third parties. From Amazon to Rakuken are the major online marketplaces used by retailers and customers.
- Community-driven: Community-building marketplaces are Etsy like platforms with sellers who manage sales, deliveries, customer service, etc.
- SAAS: It’s an open-source platform where businesses and sellers can build their website. To use open-source software more technical knowledge is required.
- Decentralized: Such kind of online marketplaces use a peer-to-peer(P2P) system. It’s an online marketplace that lets anyone buy and sell anything.
15 Top Online Marketplaces
Here are the world’s top online marketplaces
Amazon is the leading online marketplace and the largest Internet-based retailer in the United States. It is one of the most competitive platforms. Amazon is selling from books to furniture, food products, consumer electronics, multimedia products, software, and so on. The brand has grown over expectations and still is in the upfront of providing the best e-commerce facilities across the globe. This has led Amazon to be one of the Big Four technology companies in the world sharing the position with the technology giants, Google, Apple, and Facebook.
Etsy is an eCommerce website that is designed to sell handmade products, crafts, jewelry, arts, and unique items. Etsy is a peer to peer marketplace for handmade items. The uniqueness made the platform different from other online marketplaces. Etsy platforms become the best option for crafters, artists, vintage shops, and people who sell unique pieces, etc. The platform has become popular among individuals who got a chance to sell their products and make money. Etsy was created so that all artisans will have a single place to buy and sell their products.
Bonanza gives opportunities to small businesses and entrepreneurs to start an online marketplace business. In this online marketplace, the items are included like jewelry, videos, books, stamps, sports, etc. The sellers can list their products on the online platform without any payments. Buyers and sellers can create a free account and sellers can upload pictures of their products. Buyers can do an advanced search to find the product they are looking for and place orders. Sellers can make more money using this platform because Bonanza offers a higher share for sellers.
4. Ruby Lane
Ruby Lane is the largest curated marketplace for vintage collectibles. The products included in this online marketplace are Vintage Fashion, Antiques, Jewelry, Furniture, etc. Independent sellers can post and sell items in the platform after meeting their predetermined standards. Ruby Lane is ideal for new users because of its advanced facility to search items and also offers painless processing of transactions. Ruby Lane also offers referral programs and cost lowering opportunities for shop owners.
eBay is the World’s Best online Marketplace with an extensive and wide array of items for sale. Sellers list products on eBay that they have not purchased yet. It is the biggest online retailer with millions of collectibles, apparel, vehicles, electronics, instruments, business and industrial, home appliances, sporting goods, and every category of product you can imagine. eBay has 182 million worldwide buyers in over 190 countries. eBay offers sellers to grow their business and buyers can experience highly personalized selection at a great value. While sellers are charged with various fees, buyers are not charged to browse items on the marketplace.
Walmart Marketplace is the fastest-growing marketplace that allows third party sellers to list their products. Walmart is the second most popular online retailer in the world and the best-curated platform for sellers. It provides features that make it easier for sellers and brands. People can easily do searches and find products from sellers. Walmart brings 127 million unique visitors in a month. Due to the lack of competition, Walmart is the best marketplace to sell. Walmart’s formula is simple, they are looking for the lowest possible price, lower your price, and claim your box.
Kroger is the largest eCommerce platform for grocery items in the US. Kroger expands Kroger ship by launching an online marketplace to enable third-party sellers. Kroger sells products from other companies through the Kroger website. The items include international foods, special foods, natural and organic products, household items, and many more. To become Kroger suppliers or vendors, the retailers should apply online through the Kroger website. When customers order items with Kroger they can see items that are sold directly from Kroger and other third-party company notations.
Wayfair is the internet’s massive online furniture store. Wayfair sells more than 14 million products from more than 11,000 global suppliers. Wayfair is the right place to buy and sell home goods and it is the most affordable online store. Wayfair is not manufacturing any of the products they sell when customers place an order, Wayfair purchases the item among its 11,000 suppliers.
Target is new in the world of marketplaces. It became the retail giant both in brick-and-mortar stores and online within five years. Users can build a brand association with Target and it gives confidence to buyers. Target allows users to set up their own storefront and to add products. Sellers can build a website inside Target’s website and this gives a better brand presence.
Newegg is an online retailer store with items including computer hardware, software, accessories, gaming products, and consumer electronics. Newegg is one of the best online shopping destinations and a leading tech-focused e-retailer in North America. If you are selling in Newegg, you have to ship your items within 72 hours. Newegg is not only for a tech enthusiast, it has a B2B marketplace for bulk purchases. Newegg also has an Amazon Prime-like service with great benefits.
Costco has transformed the way Americans do their grocery shopping. Costco is one of the largest wholesale brands in the world with 782 locations globally. The customers of Costco aren’t subscribing for goods, mostly they are subscribing for a service, and thus it’s different from other subscription-based businesses. Costco provides the ability to buy large quantities of goods at low prices, to sell them cheaper.
Alibaba is an eCommerce and the largest business to business platform for small businesses. Alibaba website possesses 3 major marketplaces – domestic business-to-business trade in China, small buys for wholesale prices, and one for importers and exporters from more than 240 regions.
Check: Alibaba Clone Script
Overstock is a tech-driven online home products retailer that sells furniture, rugs, kitchen appliances, and bathroom accessories. Overstock eCommerce marketplace is known for its affordable prices and huge selection. Overstock works with entrepreneurs and businesses to boost their online presence and list merchant’s products in online stores.
Houzz is where you can find everything you need to know about the home improvement solutions developed using materials in hand. With 40 million users and 1.5 million professionals, this platform is a cut above.
Rakuten is the largest e-commerce and online retailing company in Japan. It is one of the largest internet marketing companies in the world. Rakuten is a cashback site that gives money for making purchases online or when using the browser extension. Consumers can earn 1% to 40% cashback through the Rakuten website.
The Challenges of Starting an Online Marketplace
- Convincing merchants and customers
- Investing a lot of time to build
- Solving the real-time problem of both merchants and customers
- Existing competition in the market
- Ensure your online marketplace is sustainable
Benefits for Buyers
- The buyer gets to choose from a variety of products within a single platform where they can find the most reasonable price on comparisons and find the best quality products available.
- The availability of trusted vendors helps the buyers to have a long trading partnership.
- Real-time updated information on the price and availability makes it easier for the customers to get the best deal.
Benefits for Sellers
- Smaller stores or vendors who are not sure about establishing their own eCommerce website or want to reduce their marketing costs can align themselves with these larger businesses and gain visibility through their fulfillment options.
- Standardization of the process.
- The platform helps to create additional sales outside the reach of offline stores and hence making profits other than the judged values.
- Enables overseas sales by providing opportunities to trade in the international e-marketplace.
iScripts MultiCart Enterprise Edition is one of the premium e-commerce solutions. It is used to instantly form and manage your business operations within your vertical market by adding suppliers or products of your own into the system. This script is a great match for customers who are looking forward to starting a distributed e-commerce platform with the least amount of money and time.
Ready to create your own multi-vendor marketplace?
Try it out for yourself right now. See the Free Live Demo: iScripts Multicart. Experiment with the demo to get a better feel for the site you could own and market. You control the backend of the site and choose the way it will function for your users.
Have questions about our web software and mobile apps and how it can work with your existing business or online business idea?
Call us at (312) 423-6728 with any questions you may have. We’d be happy to explain how our software works, including any additional business, needs you may have.