Create a Multi-Vendor Marketplace Website Like Amazon
A multi-vendor marketplace like Amazon carries numerous benefits for platform owners and promises significant revenues.
Hosting about 9.7 million sellers globally, Amazon has made $554.028 billion in profits from January 2023 to September 2023.
Let’s briefly explore how Amazon operates and how to expedite the creation of a multi-vendor marketplace without spending a fortune.
Table of Contents
What is Amazon marketplace?
Amazon is an online shopping network where third-party retailers can list and sell goods to the platform’s customers.
Sellers can enjoy Amazon’s worldwide consumer community, utilize fulfillment infrastructure, and obtain the credibility and trust associated with the Amazon brand.
How does the Amazon marketplace work?
- Sellers register for an Amazon Seller account, choosing between several account types.
- After the account approval, vendors can create product listings for the pieces they want to sell.
- When a consumer makes a purchase, Amazon notifies the seller and provides the order details.
- Sellers handle shipping and customer service either themselves or with the help of Fulfillment by Amazon (FBA), where Amazon manages storage, packing, and shipping.
- Amazon charges fees, including listing fees, referral fees (a percentage of the item’s sale price), and fulfillment fees for vendors using FBA.
- The platform monitors seller performance based on metrics such as order defect rate, late shipment rate, and customer feedback.
Building a marketplace platform: Custom vs ready-made solution
Creating a custom-made platform may seem preferable for online retailers, as it considers all their individual needs. However, experienced ecommerce software developers will tell you that advanced ready-made solutions are flexible and customizable enough to establish an exclusive and functional marketplace.
What other benefits does an existing ecommerce framework bring?
- Quick and seamless launch. You can implement the out-of-the-box solution easily, significantly reducing time-to-market.
- Cost and resource savings. A ready-made solution is less expensive and laborious to launch.
- Easy maintenance. Unlike tailored frameworks, existing solutions usually have built-in features for automatic updates.
- Marketplace features. The best existing solutions have inherent ecommerce features, ensuring greater functionality and a straightforward start for retailers.
Real-life example: How to create a Magento-powered marketplace MVP in 3 months
Magento is an excellent platform for a multi-seller website, as it empowers superior flexibility, scalability, multi-vendor functionality, and security. It serves as a reliable and efficient foundation for businesses like Amazon and eBay.
Based on our experience in multi-vendor marketplace development, it is possible to create a successful Magento-backed marketplace MVP in three months.
Here’s a brief overview of this case.
Our client intended to build a marketplace providing the desired features swiftly and with tough budget constraints.
We leveraged Magento 2 to design a fully functional MVP of a multi-vendor platform and fulfilled the project within 3 months. The path to successful task accomplishment lies through the appropriate configuration of extensions that accelerate the process.
As a result, we achieved the following functionality:
1. For Buyers:
- Search and filtering;
- Shopping cart and one-step checkout;
- Reviews and ratings;
- Similar products offering;
- Customer account;
- Payment and shipping.
2. For Sellers:
- Personal seller accounts;
- Unlimited vendor onboarding;
- Flexible commission setup;
- Vendor and product validation;
- Vendor autonomy to manage their orders and inventory;
- Comprehensive transaction analytics;
- Efficient admin panel;
- Product import from Amazon and Cdiscount;
- API Integration for collecting products seamlessly.
The project took 880 hours from our specialists, including designers, front-end and back-end developers, DevOps, QA, and PM. The total cost of the multi-vendor marketplace MVP creation was $29,700.
Building a multi-vendor ecommerce platform should not necessarily be a lengthy and laborious task. Ready-made frameworks like Magento can expedite the job and optimize costs. A professional Magento developer can streamline the implementation process.
WebMeridian has vast experience with Magento and other solutions for online retail. We know plenty of tricks to craft a winning and cost-efficient multi-vendor marketplace for your needs.
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