Glossary of Terms

What is Vendor Onboarding?

Vendor Onboarding Definition

For any online marketplace, it is essential to have a smooth and streamlined process for vendor onboarding. This is the process of bringing in new vendors to sell their products or services on the platform. Vendor onboarding typically involves a series of steps that enable vendors to create a profile, upload their products, agree to terms and conditions, and start selling.

It's important to ensure that the vendor onboarding process is as simple as possible, as this will encourage a greater number of vendors to join the marketplace. By making the process easy to follow and providing the necessary resources and support, online marketplaces can attract high-quality vendors and improve their overall sales performance.

Vendor onboarding definition

Here's an example of a vendor onboarding process once due diligence has been done:

  • Step 1: Activate account
  • Step 2: Create a payout account
  • Step 3: Set up inventory and fulfillment
  • Step 4: Create a product listing
checklist example

Related terms

Third-party (3P) selling refers to a multi-vendor marketplace model where individuals or businesses can sell their products alongside those of the main retailer.
A Vendor Management system keeps track of vendor-related activities in one place.
Contract lifecycle management is the process of managing all stages of a contract, from creation to expiration.
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Related resources

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How to Find Vendors for Your Multi-Vendor Marketplace

7 Best Practices for Successful Vendor Management

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