eCommerce is the trending buzzword in the marketplace. It has changed the complete way of shopping. Nowadays, we can buy anything from anywhere with just a single click or tap the mobile screen. But if we talk about the merchants, it has increased the level of competition present in the past i.e. people used to buy products as per their comfort like a nearby store, or from trustworthy one. Presently such factors have vanished as the digitization has minimized the distances and other factors like customer reliability etc.
Whenever we talk about eCommerce, we should always keep one thing in mind that it is way different from any stand-alone software which only displays your views and has nothing to do with goods/services trade. For e.g. WordPress is a platform where you can initiate your blog or any informative website but you will always need a plug-in to initiate the process of online sales and purchase i.e. eCommerce.
eCommerce is forcing a number of vendors to sell online in order to survive in the market. Here also, the market is full of confusions and multiple options to choose from. Below in this article, I will be conducting a precise comparison between single vendor and multi-vendor markets and heading towards the best eCommerce solution available in the market.
The technique of finding products in a single place is always useful and highly preferred by the customers. The merchants are also giving importance to multi-vendor eCommerce business over single vendor eCommerce website due to several advantages like less time-consuming, no need to worry about traffic, popularity, SEO, and site performance. You only need to showcase your product/services by simply signing up and manage them with your own admin panel.
Challenges of Multi-Vendor Platforms
- Different working cultures: Every business identity would have its own working style and cultures. It will also be a point of concern.
- High communication overheads: As there are multiple vendors involved, a high-level communication head will be involved every time. Whenever any new instruction will be made, you need to keep in mind and deliver the same to all participants and customers too.
- Direct competition: Due to the presence of multiple vendors selling on the same platform, a direct and intense competition will be present consistently.
- High rates of commission: If you sell your products on third party’s platform, you will have to pay commission on your every sale and purchase of your products which means your business profits will be divided.
- Complexity level: With wide financial details and systems present on a multi-vendor platform, a few outside sellers would be able to integrate everything effectively into a single cohesive platform. In simple words, it would include a great cost.
- Implementation difficulty: A multi-vendor solution generally requires more effort to initiate the business as you will have to coordinate a potentially incompatible integration of disparate systems.
- Losing one’s own reliability: If you choose to deal through multi-vendor eCommerce, you will somehow lose your own identity and reliability. As the customers will be choosing your products while relying on the major brand which is showcasing your products.
All the above-mentioned challenges make it really tough to deal with your eCommerce business. Therefore, in order to remain competitive in the marketplace, a number of large and mid-size companies have started to adapt smarter approaches towards merchandising. One most reliable and promising technique towards handling this complex situation of multi-vendor is to mutate a traditional eCommerce store into a multi-vendor marketplace which shall contribute to an elevated range of higher-quality products and that too without any risk of inventory, servicing investments, or logistics.
A traditional single vendor store offers the store owner a complete freedom to manage store and moreover, the development time and cost is also low. Other major advantages of a single vendor store include the following:
- Easy install and implementation
- No commission involved
- Relatively simple procurement effort as you need to deal with a single vendor
- Vendor survival
- Less direct competition
- Doesn’t lose own identity
This approach is definitely going to provide a competitive edge to your eStore among other multi-vendor giants like Amazon.
Now the question arises, “How can you achieve this goal?”
In the eCommerce marketplace, there is a number of platforms which facilitates vendors to develop their online presence. Amongst all, Shopify comes victorious in this scenario among other eCommerce platforms with its unique features and functionalities.
If you want a great return on investment (ROI), Shopify is definitely worth spending your money. Shopify eCommerce comes with a great flexibility in terms of store building which leads to higher conversion rates, sales, and lessens the administrative efforts to manage the complete store’s operations.
Shopify experience starts with a small amount of $29 USD per month to acquire a 'Basic Shopify' plan and extends to $299 USD per month for 'Advanced Shopify' plan. You can perform the upgradation, downgrading or canceling your current Shopify plan at any time as per your convenience.
It holds a large and diverse app store, easy to use features, benefits you in terms of marketing and SEO efforts, cross-channel selling, high-level security, outstanding customer support, and so forth. Shopify also extends its help to serve enterprises and big level firms to enjoy its flexibility by offering its latest version i.e. Shopify Plus.
While heading towards a conclusion, a single vendor eCommerce always come up a great scope for growth and profitability without even stressing over the things concerning in the multi-vendor marketplace. And, Shopify benefits you with an advanced level of eCommerce features and functionalities which allow you to remain competitive and profitable in the market. Developing your store with Shopify comes with a lot of ease yet you will need a little technical assistance while setting up your store as per your vision. For this purpose, you can simply opt for PSD to Shopify services of one of the best service provider available in the market which suits your needs and pocket too. I hope that you enjoyed the reading.