Thanks to the idea of hyperlocal business models which are redefining the economy with on-demand delivery models. The idea of home delivery is gaining ground and businesses are cashing in on it. BigBasket a famous brand have established their hyperlocal marketplace in the year 2016 and the change in the pattern has provided a wide range of product availability to the customers with super-fast delivery.
With hyperlocal delivery model, BigBasket established an online marketplace for local vendors and sellers and they have integrated a network of all the possible bakeries and popular vendors. This move opened up the doors for many small businesses to grow with the help of a marketplace.
There are multiple types of online marketplaces categorised based on industry, focus and target audience. We will be discussing them one by one and how the Multi Vendor Marketplace Module can help you build your own marketplace is explained.online
Online Marketplace based on Core-Focus:
There are two types of online marketplaces based on focus segments: There are marketplaces that provide either one type of service or sell one category of products and the others are a hub for multiple services with a variety of niche.
A marketplace providing a single type of service and not diving into the pool full of fishes. Let us consider an example of Etsy, what started out as a simple place for people to sell crafts has become a behemoth.
A marketplace where you will find many services or different types of products on one online platform. For example, a mall where you will find all the brands and products under one roof. An online eCommerce marketplace like Amazon is a horizontal marketplace.
Another broad classification for types of online marketplaces
A major feasible classification for the online marketplace occurs on the verticals they are offering:
· Product-based online marketplace
This type of online marketplace deals with selling products. Like Amazon and Flipkart are product based marketplaces. Commission and subscription are the two ways product based marketplaces earn money. They can even charge for delivery fees.
· Service-based online marketplace
An online marketplace where service providers can list and provide services like personal care, cleaning, plumbing, appliance repair, pest control, graphic designing, etc.
Popular service-based online marketplaces are the Urban Company, Fiverr, Upwork who are providing multiple services with hundreds of categories.
· Booking or rental online marketplace
No chance you haven’t heard about a booking or rental service providing an online marketplace. Ola, Uber, booking.com, MakeMyTrip are the most popular websites for booking or rental Marketplace.
There are modules that can help you in starting a booking and rental marketplace.
Marketplace based on the platform
A platform or an online marketplace for the purchase or sale of goods and services through wireless handheld devices or mobile phone
A two-party site, e.g. seller – shopper, company owner – investor, etc.
The crowdfunding-the website enables people to post their projects and raise funds through fundraising efforts for their execution.
Marketplaces on the basis of Customer Type:
B2B – an online marketplace for the exchange of goods or services between companies or two business merchants
B2C – an online marketplace for the transaction from the merchant to customer for goods or services
C2C– an online platform for the transaction between customers for goods or services
How to start a Hyperlocal Marketplace with Multi Vendor Marketplace?
An online marketplace should have a seller and customer-driven features covering all possible requirements of the admin, seller, and the consumer. A multi-vendor marketplace extension is a module that can serve you well for setting up a B2B or B2C marketplace.
You can customize the settings as an admin. With Multi Vendor Marketplace module the seller who registers on your marketplace can easily manage the functionality for providing the service or selling a product to the customers.
Benefits of Multi Vendor Marketplace
- Protection and guarantee for users
- Authentic sellers and customers
- Customizable settings and easy to configure from admin and sellers end
- Track product details and orders for operating intermediate transactions
- Marketplace handles the complete process
- Multi vendor Marketplace provides superior customer experience
How to generate revenue with an Online Marketplace using Multi Vendor marketplace addon?
Based on Commission Model
How does the commission model work for Multi Vendor Marketplace? A commission is a percentage or amount of money a person gets when the product or service is being provided to the customer. With the aid of Marketplace Module, the store admin can set up a global commission for the sellers.
Using Multi Vendor Marketplace, commission for the individual sellers can be set. It provides the marketplace owner with the functionality of the category level commission. Marketplace admin can charge different commission rates on various marketplace product categories.
By offering a Membership Plan
Membership plans allow the store administrator to launch a subscription-based program. If the store administrator allows membership plans to work, then all new sellers and current sellers will have to purchase a marketplace membership to list their goods in the Multi Vendor Marketplace.
The marketplace owner can allow a free membership plan in which sellers can list only restricted products. Store admin can also send custom notifications to those sellers whose membership plans are about to expire. By giving a free subscription for a limited period will grab you more sellers in your market place.
Some vendors and small businesses think it is easier to sell their goods in an online marketplace than to build a website and look for technological tools that handle several e-commerce sites. A marketplace is easy to manage with multi vendor marketplace addon.
If you’re willing to have an omnichannel approach with several online marketplaces, research all the industries and niche and think about which one suits you best and looks more lucrative, to begin with. Then we’ll help you keep your product details in order, safely, conveniently for all your marketplaces and networks.
The Multi Vendor Marketplace module is available for PrestaShop, OpenCart, Magento and Magento-2 stores. The modules are compatible with Return Manager extension available for all the platforms on Knowband store.