Do you want to start a multi-vendor e-commerce marketplace like Amazon and eBay, but the cost concerns you? Not anymore! This detailed guide explores how much it costs to build a multi-vendor e-commerce marketplace in 2021 and answers all your questions about multi-vendor e-commerce development costs.
What is the new normal for e-commerce? And what can you (as a business) do to shine in 2021 and beyond?
“Investing in a multi-vendor e-commerce marketplace development” is your answer.
Multi-vendor e-commerce marketplace made some significant buzz after successful examples of them became famous. It’s a vast and emerging industry to expand your business, draw new customers, create a lasting brand image, and ultimately generate better revenue.
So if you’re thinking of building a thriving marketplace like Amazon and become the next Jeff Bezos, we must admit that it’s a lucrative idea. Multi-vendor e-commerce marketplaces are on the rapid rise these days.
A total of 21% of responding e-commerce companies have already turned into a multi-vendor marketplace. Hence, it’s high time you should also look for an experienced e-commerce development company that can seamlessly turn your idea into a multi-vendor e-commerce marketplace solution in no time.
What Is a Multi-Vendor Marketplace?
The introduction of the marketplace model of e-commerce was an evolutionary milestone in the e-commerce industry.
As the name suggests, a multi-vendor marketplace is a platform for third-party sellers to sell in one place. In other words, a multi-vendor marketplace is an e-commerce platform that empowers multiple vendors to sell their products/services from one storefront.
A multi-vendor store gives shoppers an enormous catalog to choose from and provides sellers with an increased base of ready-to-buy customers. To be clearest, think of a multi-vendor marketplace as shopping malls.
The Most Successful E-Commerce Marketplace to Take Inspirations From:
The Must-Have Key Features for Your Multi-Vendor E-Commerce Marketplace
- Simple Login Process
- Convenient Buyers Page
- Customizable Vendor Page
- Item Listing
- Advanced Search
- The Simple and Fast Payment Gateway
- Security as a Priority
- Transparent Ratings and Reviews
- Engaging Social Media
- Product Notifications
- Quick Support
Things to Keep in Mind While Developing a Multi-Vendor E-Commerce Marketplace in 2021
Building an e-commerce marketplace is a bit complicated as there are several things one needs to consider. Thus, it’s better to hire a professional and experienced company. Let’s look at some crucial things business owners need to keep in mind during the development process.
- UX/UI – Design and user experience can make or break your multi-vendor e-commerce marketplace. Thus, needing to be potent. An easy-to-navigate, with well-defined categorization, an appealing UI, and visuals can lead to better CX.
- Uniqueness – Your concept should be unique and original, and above all, should stand out to gain more users. It should not be a straight-out replica of something that is already on the market.
- Platform – The right platform is essential for the success of your business. Therefore, choose the right platform for your multi-vendor e-commerce marketplace based on your budget. Select the best features to meet the future requirements of your potential users.
How Much Does It Cost to Build a Multi-Vendor E-Commerce Marketplace?
Honestly speaking, you can’t calculate the exact cost of developing a multi-vendor e-commerce marketplace. You can’t fix one price that is applicable for all types of multi-vendor marketplace. This is practically not possible because each business has different demands and requirements.
The budget can start from $10,000 and goes somewhere to $300,000 or more depending on the needs, demand, features, and one’s budget. That said, the development process has many layers and the cost is influenced by various factors.
Let’s have a look at them
8 Factors That Will Influence the Cost to Build an E-Commerce Marketplace in 2021
The cost of building a multi-vendor e-commerce marketplace depends on several things. The budget can be different for startups and large enterprises (a well-established company). For startups, the cost will be minimal; however, for large enterprises, the price can vary as per the features, functionalities, customizations, integrations, etc.
Here are some influential factors that affect the cost of multi-vendor e-commerce marketplace development:
Your multi-vendor e-commerce marketplace development cost depends on what are your requirements with your marketplace website.
There are mainly two types of requirements in any e-commerce marketplace development project:
- The regular (usual) features present in currently functioning websites in the market.
- Unique features that are not present in any popular website in the current market.
If your requirement is general, you can fulfill it readily by leveraging some ready-made multi-vendor software. However, if your required features are unique and customized, you might need modules, extensions, plugins, or add-ons that can meet your multi-vendor e-commerce marketplace needs.
The Business Model
The choice of multi-vendor e-commerce marketplace depends massively on the type of business model you will follow. As a result, the choice affects the overall cost of your project. For instance, if you want to develop a simple B2C or B2B multi-vendor e-commerce marketplace to sell, you have all the options available at your disposal. You can choose free, premium, open-source, or SaaS options.
Investment in Upfront or Parts
Should you invest upfront or invest in parts? This is one of the crucial questions that can influence multi-vendor e-commerce development costs. If you go with open-source options, you will need to make some upfront investments to purchase the source code or purchase different modules to customize the marketplace. Although you can’t invest a heavy amount upfront, you can opt for a SaaS e-commerce platform.
Off-the-shelf software is the right choice for businesses that want to create and launch an online store as soon as possible. Moreover, when you are leveraging the already-built products, then the options like testing, wireframing, and development get skipped.
On the other hand, Bespoke software is centralized on creating an online store with personalized business logic. Besides, it customizes the software as well and lets you integrate all the mandatory and required functionalities.
Functionalities and features are the key factors that highly influence the cost of a multi-vendor e-commerce marketplace. UX/UI design, user profiles, security and authorization, sellers functionality, product page, filters and advanced search, payment integrations, notifications, admin panel, and so many other things affect the overall cost of the multi-vendor marketplace.
The development team consists of the following experts — project manager, developers, UX/UI designers, back-end and front-end developers, QA engineers, and more. The per-hour hiring cost can range between $100 to $300, based on the location, skill-set, expertise, experience, and technology stacks. You can also fix one price for the entire project instead of the per-hour price.
When it comes to UX/UI design, the price can greatly vary. Your multi-vendor e-commerce marketplace design usually depends on your e-commerce site’s complexity, features, functionalities, integrations, design choice, size, budget, and more. It can take about $10,000 to $80,000 (or more), varying according to the number of pages and features.
Back-End and Front-End Development
The front-end and back-end developments are the soul and structure of the multi-vendor e-commerce marketplace. The more complex and time-taking your e-commerce marketplace will be, the more money it will require. However, back-end and front-end development costs can be anywhere around $50,000 to $200,000 or more, varying according to the requirements and complexities.
The Top Multi-Vendor E-Commerce Platforms You Can Leverage
It takes a lot to convert an e-commerce store to a marketplace. Let’s check out the top, best, and most robust multi-vendor e-commerce marketplace platforms you should leverage in 2021.
Being a leading e-commerce platform, Shopify can help you convert your store into a multi-seller marketplace. You can leverage the Shopify web development services to ease the job of converting your online store into a marketplace, thus enhancing the functionalities of your e-commerce marketplace.
Magento is another e-commerce platform that can turn your online store into a fully-functioning multi-vendor e-commerce site. Magento development experts can help you develop a multi-vendor marketplace with reach functionality, great customizability, scalable e-commerce solution, and several incredible features.
It’s a widely used WordPress plugin that is easy to use and comes with great offerings. If you hire a reliable WooCommerce development company, they can easily convert your online store from a small to a large-sized business. Thus, you can customize your shop design on WooCommere and sell everything on your terms the way you want.
The e-commerce market is booming. And to create your unique identity, you need to make a multi-vendor e-commerce marketplace to grow your business and increase revenue. Coming to the concerning factor, i.e. cost, we hope this guide helped you understand how much does it cost to build a multi-vendor e-commerce marketplace and cleared all your doubts related to the cost of multi-vendor marketplace development.
So go ahead, hire a professional e-commerce development company and turn your idea into a great marketplace right now!