Marketplace Model

By Lakshay May 10, 2019

Today’s day and age is the age of Sharing economy and marketplaces. The biggest taxi operator today owns no cars, the biggest hospitality company does not own any hotels, the biggest food service providers do not own restaurants or kitchens. All of this has been made possible by the marketplace model.
Starting your own e-commerce business is well within your reach now. There are plenty of automation tools and high-tech resources available to assist you with scaling your business. What would be your next big move, it is up to you!


The marketplace model provides a huge opportunity for growth and is already showing an effective result for various businesses. You might be wondering:

What is Marketplace Model

Online store (marketplace) where multiple sellers/vendors come together to sell their products to customers. The store is owned by the administrator, who invites multiple sellers/vendors in the exchange of a commission or a fixed listing fee.

Common features

  • There is a store administrator who manages the store and in most cases is the owner of the marketplace. He charges a particular commission which can be a percentage or a fixed amount from the vendors.
  • Product Uploading is managed by the vendors who can upload the products by filling a form or using a CSV file for bulk uploading. Admin has the authority to approve or disapprove the product.
  • Different Payment Methods can be allowed for customer payment as well as a vendor payment. All payment related operations are managed by the store admin.
  • Few marketplaces allow the vendor to generate reports showing their sales.
  • The shipment of the products is done by the admin in most cases but it can also be done by vendors.
  • Both the store admin as well as the vendor can sell the products in case of a multi-vendor marketplace.

Single VS Multi-vendor marketplace

Overall multi-vendor marketplace has a greater scope There has been a significant increase in the total count of online shoppers as well as new eCommerce businesses in recent times, which points to a promising future of marketplace model.

Types of Marketplace

The marketplace can be classified as:-
B2B(business to business) = This is just like any other marketplace with one crucial difference customers are companies. That is why products and services are purchased to be used in companies. Consequently, the B2B marketplace has its own laws and rules. For example- ThomasNet, IndiaMart, eWorldTrade.
C2C(customer to customer) = or peer-to-peer marketplaces were some of the first online marketplaces. Typified by the likes of eBay, Gumtree and Craigslist are where individuals can sell goods or services directly to other individuals. In more recent years, wholesale stockists have seen these as a prime route to expand their retail footprint and appeal to people outside of their region or specialism.
B2C(Business to customer) = Consists of businesses selling to the general public through shopping cart software, without needing any human interaction. An example of this would be Amazon.
Crowdfunding = This platform lets people post their projects and raise money for their execution through fundraising campaigns. Famous examples are Indiegogo, FundRazr, RocketHub.
Auction platform = Platform where a seller lists a product and sets a deadline, the buyer with the highest bid gets the item. The best sites that are working through this model are eBid, bonanza, Atomic Mall.

Vinsol Marketplace Model

Marketplaces are gold mines when done right, SpreeCommerce, an open source platform, focuses primarily on eCommerce, and it is certainly one of the best ways to build an online store, particularly a marketplace. Vinsol being a SpreeCommerce core team provides a perfect platform for the B2C marketplace with all the common features mentioned above and some extra features that can also be integrated. If your marketplace vision requires customizations our team can customize the solution to meet your needs.
Roles and permission set = Admin has the power to decide what all features vendor can customize and also for what set does the approval is needed from admin
Order management = From pre-order to back order, every aspect of order management is being recorded and keep track off. The service is available for both admin as well as vendor
Inventory management = Vendor can easily monitor the stock of any product, also the stock is updated with every transaction made. For admin, his capital does not get tied up in inventory. He can spend more on marketing and publicity while the vendor carries the inventory.
Product management = The uploaded product requires product information, description, and various feature. This data is updated by the vendor at the time of product entry
Promotion management = Admin will be responsible to manage this feature
Shipping = Shipping the order can be managed by admin or by the vendor also. For that delivery management system can be provided. Admin can monitor the shipping in case the vendor is responsible for shipping
Payment = commission can be manually generated or automated also. In terms of customer payment, the amount can be transferred to admin as well as vendor directly. In case the amount is transferred to admin, one can deduct the commission and then transfer the remaining to vendor
Analytics and reports = To analyze the performance of the vendor, admin is provided by a vendor-specific dashboard. Whereas vendor is provided with a personalized dashboard with sales report and analytical tools
Email services = To manage customer services and communication between vendor, customer, admin.

If you are looking to take the next big move for your business with the marketplace model, contact us. Vinsol can provide you the platform to transform your Marketplace vision to reality

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  1. george Devin says:

    Thanks for sharing what is marketplace model and its common features. The marketplace model provides a huge opportunity for growth and is already showing an effective result for various businesses.

  2. Jenifer Benz says:

    I have read the article. Everything was represented in a pretty good way. Regularly visit your site to collect some new information from your topic.