More and more companies are realizing the opportunity for increased revenue and customer reach by leveraging the multi-vendor marketplace model. In fact, 9 out of the top 10 US retailers have a marketplace. Coincidence? We think not.
By adding a multi-vendor marketplace alongside their existing business lines, retailers and brands are seeing a 10% increase in YoY revenue when compared to their ecommerce counterparts. They are also able to increase traffic to their site — generating new customers and enhancing SKU depth all in an asset-light way.
It’s no wonder that forward-looking companies are adding the marketplace model to their ecommerce strategies.
There are multiple ways you can leverage the multi-vendor marketplace model within your business. Some common applications are:
Many large retailers are using the multi-vendor marketplace model to allow vendors to sell products on their site without having to hold the inventory themselves. This asset-light model enables retailers to increase SKU depth without the additional cost of warehousing or fulfillment support.
Here are some examples of large retailers who are using the multi-vendor marketplace model on their site:
Brands are taking back their brand experience from resale marketplaces like Poshmark and eBay by creating their own resale, or recommerce, marketplaces. Benefits of a recommerce marketplace include owning the brand experience, reconnecting with customers, enhancing brand accessibility, and increasing revenues.
Here are some examples of brands who are leveraging a recommerce marketplace:
The iPhone would not be what it is today without apps like Instagram, Facebook, Netflix, Google Maps, banking, and more. Companies are enabling developers and partners to build products and services to support their product and enhance their customer experience.
Here are some examples of brands who are running an app store marketplace:
These three examples aren’t the only ways you can leverage a multi-vendor marketplace for your business. As ecommerce becomes more connected, companies are tapping on their networks to create more value for customers, and, ultimately, keep them coming back.
Additionally, there are lots of companies who were built as multi-vendor marketplaces from the start who have seen incredible growth. There are the large household-name marketplaces like Amazon, eBay, and Etsy, but every year there are more startup marketplaces coming onto the scene. A16z does a breakdown of the new multi-vendor marketplace players every year. You can see their Top 100 Marketplaces list here.
As you’re planning your ecommerce strategy, ensure you are planning for the multi-vendor future and not the single-tenant past by building with a multi-vendor marketplace platform.
Whichever way you choose to leverage the multi-vendor marketplace model for your business, Nautical has the tech covered! Reach out to a Nautical marketplace expert to learn how our multi-vendor marketplace platform can help you get to marketplace revenues faster without the cost of custom code.