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Ecommerce

Magento as a Marketplace Platform for Multi-Vendor Ecommerce Business

Magento as a Marketplace Platform - ScienceSoft

Magento as a Marketplace Platform: The Gist

Online marketplaces are the most profitable sales channel in ecommerce (generating almost a half of all online sales). No wonder that ecommerce software vendors strive to cover the marketplace model, and Magento is no exception. Though inherently a single-vendor platform, Magento serves well in a multi-vendor role too. What you need is a ready-made marketplace extension to convert Magento into a multi-vendor marketplace.

This ability to keep apace with ever-changing demands of ecommerce businesses and digital consumers has awarded Magento a status of Leader in Digital Commerce according to such reputed market researchers as Gartner and Forrester.

Translate the right marketplace value to sellers

Launching a marketplace, you need to understand your competitive advantages and communicate them clearly to draw in sellers. With a Magento-powered marketplace, you offer:

Services to enable ecommerce sales quickly

Including self-service product management, online merchandising, payment processing, and customer service. Warehousing, order management and return handling may be either on the seller’s or the marketplace’s side.

High online traffic

You assume a full ownership over customer acquisition and achieve vast customer outreach through advertising, SEO, promotions.

Unmatched customer experience

Access to multiple brands, a possibility to compare products and prices from multiple sellers.

Magento multi-vendor marketplace: functional portfolio

Marketplace features for the owner

Streamlined onboarding of new sellers

With an intuitive process of marketplace account registration and automated notifications on account approval.

Commission management

To enable different commission rates for different sellers and product categories.

Analytics dashboards

Reporting on key marketplace metrics: GMV, average order value, customer acquisition cost, etc. The metrics can be tailored to your business needs.

Quick automated approval

Of products uploaded by sellers.

Restricted product categories

To protect consumers from fraudulent products and require from sellers licensing confirmation before giving them an approval to sell.

Customizable product attributes

For different product categories and types.

A custom homepage

To ease customer navigation to top selling products, trending product categories, best sellers, and current special deals.

Product recommendation techniques

To showcase a larger product assortment to customers and help conversions.

Marketplace features for sellers

A seller dashboard

To modify business information and manage business operations: products, orders, payments, sales analytics.

Role-based admin access

To delineate responsibilities of different team roles.

Editing an account URL

To make URLs SEO-friendly and easier to share.

Bulk product upload

To speed up time to market for new products.

Assisted inventory management

Notifications on low stock, a pre-order possibility, timed SKUs to go live upon restock.

Order management

Allowing sellers to receive, process and ship their orders independently.

Marketplace APIs

To connect a seller‘s account to their business systems: e.g., OMS and PIM.

Integrating social media

Sellers can promote their social media presence and nurture a brand-loyal audience.

Access to customer-generated content

To view and respond to customer feedback and inquiries.

Marketplace features for customers

Multilingual support

To allow for shopping in the native language.

Faceted navigation

To help customers filter a wide-ranging product catalog and a seller list.

Contacting a seller directly

To get customer cases resolved promptly.

Concurrent checkout

With products from different sellers.

Access to a seller’s page

With comprehensive brand information and a full product collection.

Streamlined checkout

With automated tax calculation for multiple sellers.

See Marketplace Functionality in Action

We've prepared a demo to illustrate all the functional capabilities that you will obtain in a marketplace solution and explain how they will help you to engage more sellers and make digital user experience smooth.

Magento marketplace integrations

To enable professional selling on a Magento-powered marketplace, you can create APIs and provide cross-system integration possibilities. It means that sellers will be able to connect a marketplace account to their business systems and enable data exchange between them. This is particularly important for omnichannel sellers.

The focus integration areas are inventory, product information management, order fulfilment, and analytics.

Magento marketplace integrations

Inventory API

Sellers upload product listings in bulk and sync stock levels across their sales channels.

Product information management API

Sellers spread consistent product information across their sales channels.

Order fulfilment API

Sellers maintain visibility into large volumes of omnichannel order data, manage different packaging and couriers centrally, and please customers with fast and accurate delivery.

Analytics API

Sellers look deeper into sales performance, analyze the efficiency of their promotional initiatives, elicit seasonal trends, and understand the contribution of a marketplace channel into their revenue pipeline.

Since 2011, ScienceSoft has been a reliable partner to businesses choosing Magento as an ecommerce technology. Tasked to build a multi-vendor marketplace, we successfully shape Magento into a required solution, keeping focus on lasting security and high coding standards.

How a marketplace model works for different product lines

With Magento as marketplace software, you cater to the specifics of diverse shopping categories.

Consumer electronics

Consumer electronics

  • Given the difference in profit margin, offer to sellers different commission rates for diverse product categories.
  • Provide customers with competent guidance across multiple electronics brands and models.
  • Allow for payment in installments.
  • Give sellers a possibility to craft their individual brand pages as customers tend to be brand-loyal in the electronics domain.

Furniture & Home décor

Furniture & Home décor

  • Add interior designers as a promising target segment.
  • Offer a premium service options with personal account managers to put together design proposals.
  • Provide 3D viewing experience to help customers visualize furniture items.
  • Collaborate with sellers offering versatile and multifunctional furniture much demanded in the context of remote work.
  • Get user-friendly assembly manuals from sellers if furniture items are modular.

Beauty & Personal care

Beauty & Personal care

  • In times of continuing social distancing and self-isolation, build a product line around self-care products and be careful with makeup and fragrances – both experience a decline in sales.
  • Consider beauty boxes as a way for customers to maintain their looks, an alternative to beauty shop visits.

Apparel & Accessories

Apparel & Accessories

  • Choose and stay within a selected fashion segment (luxury or mass market).
  • Collaborate with less promoted designers and brands, aggregate your authentic fashion collections.
  • Introduce click-and-collect opportunity at sellers’ locations to ease customer choice and reduce returns.

Mixed product assortment

Mixed product assortment

  • Plan the hierarchy of commission rates for different product categories and sellers.
  • Target both individual consumers and wholesale buyers.
  • Keep the focus on one pricing segment to resonate with your target audience across diverse product categories.

Food delivery

Food delivery

  • Mobile experience is important as customers may frequently order on the go.
  • Give restaurants self-service tools to manage the menu.
  • Take care of the safety of customers and your staff by introducing no-contact delivery.
  • Nurture customer loyalty and offer rewards for order frequency.

Magento multi-vendor marketplace: investment breakdown

A total cost of your marketplace launch is a sum of three components.

1

Magento 2 license cost

2

Magento marketplace extension cost

3

Magento marketplace implementation cost

Bring Your Marketplace Plans to Life with Magento

Our team at ScienceSoft will contribute to your marketplace success by planning and implementing an apt experience both for sellers and end customers.