The e-commerce industry has grown by leaps and bounds over the past few years. While selling your own products or services over the internet is a good idea, allowing other sellers to offer their wares on a website managed by you, is also an effective profit-generating concept. Lack of sufficient funds and resources make it difficult for small and micro-enterprise owners to create their own online stores. A multi-vendor channel allows them to reach out to a wider audience without making significant investments.
The administrators or owners of these online stores make money by taking a commission on every sale conducted on their platforms. They can also choose to sell their own offerings, apart from earning revenue through all the other transactions that take place in their stores. Multi-vendor setups enable entrepreneurs to offer a wide range of products or services and attract a large number of customers. It is an efficient business model that helps both parties namely, the administrator/ owner and the vendors make good money.