Digital commerce has been around for a number of decades. In the early 80s, an online store was introduced to sell used computers. Ever since many companies and stores have created single-vendor platforms to sell their products to the ever-growing number of online shoppers.
To meet the demands of online shopping and make operations easier for vendors, a new form of eCommerce called multi-vendor eCommerce was introduced. It is just the opposite of a single-vendor marketplace. To understand the difference between the two and choose the one that is best for your business, we will look at the single-vendor vs. multiple-vendor marketplace.
Single-Vendor vs. Multiple-Vendor Marketplace: The Definition
A single-vendor platform is an individual website for selling goods or services from a business to online buyers. Such a website is mostly known locally and provides new products. However, it could use either a B2B or a B2C approach.
On the other hand, a multi-vendor marketplace is a website platform that hosts many vendors who sell different products and services to online shoppers. They are very common these days, and Virto Commerce is one of the popular options.
Now that you know the definition of single-vendor vs. multiple-vendor marketplace, we will look at other differences that distinguish the two.
Single-Vendor vs. Multiple-Vendor Marketplace: The Features
A single-vendor B2B marketplace is an individual website, as mentioned, that sells products or services to sellers. The features vary depending on what a vendor wants. However, it must have a product-editing capability, a payment solution, marketing tools, and inventory management solutions.
A multi-vendor marketplace is loaded with amazing solutions for conducting eCommerce. Just to understand the difference between a single-vendor vs. multiple-vendor marketplace, we will look at the features of the latter in detail.
· Headless eCommerce approach – The main role of the multi-vendor platform is to make work easier for vendors by taking care of the difficult back-end tasks such as providing a thriving marketplace, and organizing products so that customers can locate them easily, inventory management, and more.
· Marketing tools – Whether you want SEO enhancement tools, a multichannel selling platform, or any other form of marketing, a multi-vendor platform will offer a wide range of tools for you.
· Secure payment solution – One of the distinguishing differences when looking at the single-vendor vs. multiple-vendor marketplace is the security of payment processing. Multi-vendor marketplaces have to build a reputation for the best payment solutions, whether social selling to local or international customers.
When people are comparing the single-vendor vs. multiple-vendor marketplace, they also want to know the differences in benefits.
A single vendor marketplace does not have many exclusive benefits apart from having the marketplace to yourself. The big challenge is that they are hardly known by many online shoppers unless they use a lot of resources to market the brand.
On the other hand, the multi-vendor marketplaces have a lot of benefits for both B2B and B2C businesses. They save on costs, offer a thriving marketplace, facilitate the management of shops and products, and provide the ability to manage the products page to mention a few. They also provide many tools and apps through integrations with other solution providers.
Anyone who has been curious about the single-vendor vs. multiple-vendor marketplace now knows the difference. From the insights above, the latter is the better option to run an eCommerce business today. So, make an informed choice for your business.