How to Choose the Right Marketplace Software for Your Business?

How to Choose the Right Marketplace Software for Your Business?

You are still facing a mental dilemma in deciding on the right marketplace software for your business? Well! All those who are looking for an ideal marketplace software that supports affordable, quick, and easy marketplace should halt for a while and have a glance through this. When there is a platter of options for online marketplace software, it can be difficult to decide on the best option. Before you decide on the right marketplace software for your business, you should consider five major points.

  • Marketplace software focus
  • Software marketplace extension
  • The business model of the company
  • Marketplace software offering the services
  • References of the company

An Ideal Marketplace Software

An ideal marketplace software is similar to an eCommerce platform and is also known as a multivendor marketplace. It allows users to create and manage digital stores with products/services listed from different vendors. This platform helps to streamline the different processes, such as creating, hosting, and managing the online marketplace, from website design to communicating with vendors and shipping, easily. An eCommerce platform is for a single vendor, but a digital marketplace deals with different vendors' eCommerce platforms. A product must meet certain parameters to qualify for being included in the marketplace category.

How to start and choose the right Marketplace Platform?

Some of the successful marketplaces, such as Fiverr, Etsy, and others, have proved that marketplace platforms can be perfectly scalable and flexible to support any kind of business industry. The reason for the quick development and growth of online marketplaces is that retailers avoid the requirement of maintaining an inventory. Also, it is worth mentioning that online marketplaces manage to generate 47% of total digital sales, making marketplaces eCommerce ideal shareholders when it comes to online revenue. Nowadays, an online marketplace can be started in a week, but one needs to keep an eye on its success rate. Some key points to consider when choosing and starting a marketplace platform for a successful business include:

  • Different options for payment- One should focus on the best payment platforms while looking for eCommerce software, and it is noticed that eWallets are the most preferred payment method across the globe for online customers.  A marketplace must be such that it supports different options for payment- bank transfer, credit card, PayPal and others. Recurring payment system is also a good option, as it provides automated payments.
  • Platform safety, security and privacy- The topmost priority should be to look for a safe and secure platform that maintains complete privacy. SaaS marketplace software supports marketplaces built on a shared environment, while PaaS models support marketplaces with their own environment to ensure security.

  • Vendor payout management- Paying out funds received from customers to vendors is a must and an important factor for which the platform should look into different fee types. This supports an effective and quick vendor pay-out procedure. A flexible fee structure is beneficial for vendors individually and for marketplaces that adjust fees for vendors depending on negotiations.

  • Scalable business- It is important to know what the best business model is for a business, and an online marketplace can be developed according to the requirements. Marketplaces should start small and expand to facilitate growth, and at this stage the technology should not be a constraint. There should be a flexible platform to encourage overall business growth. It is the marketplace owner who should focus on the flexibility of the platform while ensuring that the technology has good features to support the business.

  • Smooth vendor onboarding- For a marketplace to be successful it depends on the high-quality vendors and the products that can be acquired. Customers have a preference for shopping from multi-vendor eCommerce platforms, so having a wide assortment is more advantageous for the marketplace. Vendor acquisition is a complex process, so it must be ensured that the vendor onboarding is a quick and simple process. Getting acquainted with third-party eCommerce software makes a space for the marketplace to fit into the vendor's operational business system. Products, inventory, and other details need not be entered manually; rather, all the details will be pulled from online stores such as Magento and Shopify.

  • Different shipping options- Selling a product or service on a multi-vendor marketplace platform will help the business to grow and owners must ensure the integration of the platform with courier services for flexible fulfilment orders. Different shipping options can be started after identifying the target vendors. Also, if a marketplace platform can support drop shipping as well as a centralized delivery fulfillment model, it would be the best option.

  • Maintenance- The most important aspect is platform maintenance and its sustainability. Before tying up your business with a marketplace provider, you must know about your options for working with and making changes to the marketplace. You must look for a marketplace that is easy to manage; otherwise, you may encounter problems with a platform that has limitations and is not straightforward to manage. This can lead to a financial loss and require you to invest in a new platform. To avoid and overcome such a situation, you must know about the technology in detail before investing your money.

  • Overall product management-Multilayer product catalog is the requirement of a perfect eCommerce store and marketplace. A marketplace helps the customers to compare products while providing them a satisfying customer experience. This helps buyers to find the products they are looking for through advanced search. Sellers should also find it easy to add and manage their products.

  • Vendor order management- A vendor must find it easy to handle a marketplace platform, and this is only possible if the software offers a variety of tools to structure vendor order management. Some of the integration capabilities allow the automatic updating of the vendor-owned stores with the orders and other details.

  • Technical support-Before you decide for a marketplace platform you must know about its responsiveness and technical support, as we must not forget that technology can require technical support at any point of time.

  • Costing- It is not necessarily the case that a platform with a higher price will be of good quality. You should opt for product-based companies providing new features, capabilities, and a better experience, as this would be a sound investment in the marketplace technology. To build a good and scalable marketplace you must look for the right platform that provides an ideal base to achieve the same. 
Let’s Sum Up!

So, if you want to see remarkable growth and success in your business, then you must opt for the right software solution. Talking to different vendors can surely help you to find the right technical partner for your marketplace.

At W3villa Technologies, we specialize in creating custom online marketplaces that meet each customer's unique needs. With our experienced team of experts on hand, we can turn your vision into a reality. We provide unparalleled support, guidance and consultation every step of the way to ensure the success of your project. Get in touch with us today to talk about your concept, and let us help you bring it to life.

Prince Pathak

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