Challenges that every multi vendor marketplace platform faces today


Building a multivendor marketplace platform is the easiest one for any entrepreneur. There are many software developing agencies available in the market that can easily build you a multivendor store like Amazon and can launch your multivendor software in minutes and make it live. Even there are many readymade eCommerce solutions available that are simpler while comparing to building a multivendor store from scratch.

Readymade software solutions are more cost-effective and it is also highly recommended for any startup that needs a budget-friendly multivendor platform. So you can find so many ways in owning a multivendor store. But before you start entering the eCommerce industry you need to have a clear idea about the challenges that are ready to be faced.

Now we will analyze all the challenges and will come out with a solution to confront them. This will help you to compete with your competitors and survive the market with your online marketplace software and get greater reach with higher revenue.

#1. Market Analysis & product sourcing:

Analyzing the market is the crucial aspect that every entrepreneur should have done before starting the multivendor development process. Without understanding the market demand there is no point in investing in products. You need to check what product is in high demand and where you should pitch the product and many more.

multi vendor marketplace platform
multi-vendor marketplace platform

The essential part is to keep products available all the time. You need to have a solid stock base either it comes from partnerships or third-party retailers or manufacturers or drops shippers. Also, customers may not get the same experience of selecting products as they do in mortar and brick stores. These issues need to be sorted out.


You need to go for an enterprise-grade multi-vendor eCommerce platform that will possess all features of inventory control, perfect UI & UX that will make customers feel like shopping in physical stores. Through push notification, sellers should be intimated regarding stock availability and should maintain every stock with a minimum level.

#2. Understanding customers’ buying behavior:

We can easily do customer segmentation. Segmentation can be done product-wise or region-wise or customers’ age-wise and many more. By identifying your target audience you can easily segment them and pitch your product accordingly. But the problem is the buying behavior of your customers keeps changing periodically.

multi vendor marketplace platform
multi-vendor marketplace platform

Initial days, people only preferred visiting physical stores rather than online marketplaces. Then later they started visiting eCommerce platforms. Again they preferred dedicated mobile applications that are more flexible for them to access the multivendor store. This clearly shows how their buying mode keeps changing often. One needs to understand this to make the multi-vendor eCommerce platform successful in the market.


Many advanced technologies are trending these days. A few of those technologies that are popularly known are artificial intelligence, machine learning, data science, and Big data. You need to implement these technologies in your multivendor platform that can easily identify the buying behavior of your customers and can give you clear reports on products that are selling more, products that are highly viewed, and many more.

#3. Optimization of marketing channels:

People find several ways to reach your multivendor store. There are several marketing channels available that will make users easily identify your multivendor platform and visit them at ease. Your multivendor website will start getting huge traffic from several marketing sources and it is difficult to optimize them

You need to identify at least two marketing channels that bring more traffic to your platform and should focus on optimizing them alone and that is a major challenge for any multivendor store owner. Before optimizing the channel you need to be sure that you get a target audience from those channels.


Run a channel-specific marketing campaign that will have its focus on the target audience. Initially start with a minimum budget and then increase your marketing expense. You can track CPR through your multivendor eCommerce platform and can get analytics to find the exact source of traffic and can optimize those sources alone.

#4. Sales and conversion:

Getting an order conversion is the most challenging part for any multivendor eCommerce store. In physical stores we will have a salesperson to explain about the product and customers will feel free to get their doubts clarified and then they will decide to buy the product. They can even negotiate the price and can get it for a perfect value. This is not so when they shop with a multivendor marketplace platform.

Providing a seamless shopping experience is the toughest part as it requires more perfection in the designing part of the multi-vendor marketplace platform. Customer engagement is not as easy as you think. You cannot make them interact and get to know what exactly they search for in your multivendor store.


Increase the communication channels in your multivendor platforms like chatbots, live chats, ticketing system, VOIP, email, Whatsapp, and many more that will increase the user interaction with your platform. Have attractive contents that will give a detailed description of your products and will clear most of the customers’ doubts. This will let more conversions happen in your multivendor platform.

#5. Customer retention:

There are many ways to acquire new customers to your multivendor store. But we cannot keep acquiring new customers for a long time. At one point you will find fewer customers joining your platform. In this stage, you need to rely completely on your existing customers who can buy products repeatedly on your platform.

But retaining your existing customers is the most difficult task. It is difficult to build trust in your customers’ minds and make them stay with you for a longer period. Also, there is more competition and many multi-vendor eCommerce platforms are ready to grab your customers. You need to find ways to retain your customers with you.


Have more customer delighting features in your multivendor platform. Provide them with better offers and discounts than your competitors offer. Make sure you get their feedback and know-how your quality and service are working. You can also have referral programs that will make customers earn by referring their friends. Include affiliate modules in your multivendor marketplace platform and make customers be your brand ambassadors.


The major problem that we face today is there is not much development seen in our multi-vendor eCommerce platforms. It is the same as it was a decade before. There is nothing attractive and people started expecting more from the eCommerce industry. The multivendor platform that acts unique will get more attention and others will considerably lose the race. Always keep updated with the technology and implement all trending features in your multivendor store that will make your stand unique in the crowd.

Keep an eye on your competitors and try to understand their marketing strategies and the latest offers and discounts they provide to their customers. Create a counter-plan and grab the attention of the audience to your multivendor platform. Focus more on the quality of service your platform offers and never miss any opportunity that will delight your customers.

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