Glossary of Terms

What is Multi Vendor Commerce?

Multi Vendor Commerce Definition

Multi-vendor commerce is an e-commerce model where a platform acts as an intermediary for multiple independent vendors or sellers. This approach allows customers to access a diverse range of products or services from various sellers within a centralized marketplace. The platform provides shared infrastructure, including the website and payment processing, while individual vendors own and manage their offerings.

Customers benefit from a one-stop shopping destination with a wide product catalog, and the platform typically handles order processing and payment transactions. Revenue for the platform often comes from charging commissions or fees on the sales made by vendors through the platform. Examples of multi-vendor commerce platforms include Amazon, Etsy, and eBay, which have transformed online commerce by offering a centralized space for a multitude of sellers to reach a broader audience.

Multi-vendor commerce definition

Related terms

A marketplace business model is a type of ecommerce platform where the website operator doesn't hold the inventory or the products for sale.
Dropshipping is a method of retail fulfillment where you don't keep any inventory in stock.
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