Multi Vendor Store

It is difficult to supervise each seller in a multi-vendor relationship and see if they deliver quality products. However, having an effective vetting process while onboarding can help mediate the risks of working with a fraudulent or unreliable partner.

In a multi-vendor marketplace, customers can browse through product offerings from different suppliers and switch between options within the same space without leaving the site.

A single vendor store, on the other hand, implies certain restrictions in terms of choice and available inventory. If a customer doesn’t find the offering to their satisfaction, they are likely to leave and turn to another store.

Vendors on a multi-vendor website will essentially drive traffic to the site. On the contrary, an owner of a single vendor store will be solely responsible for the website’s marketing and traffic (on top of maintaining business operations, inventory, and logistics).

Low traffic is not the only challenge awaiting web stores. As the site’s sole owner, single vendors cannot afford to lower prices below a certain threshold. Customers are likely to shop around and end up at a marketplace where someone else offers a lower price.

In a multi-vendor model, the roles and responsibilities of all parties are clearly defined: a marketplace owner maintains the website and infrastructure while vendors sell. On the contrary, single vendor store owners wear multiple hats and oversee every aspect of their business – from website maintenance to logistics.

A basic eCommerce website might be fairly inexpensive and easy to set up, considering there’s a plethora of plug-and-play websites and eCommerce store builders like Shopify. Setting up a multi-vendor store is a more complex process that involves custom solutions and numerous integrations.