Last Updated: 10th January, 2024

With over 10k stores in 20 countries, Walmart is the largest retailer in the world. It is also the second most preferred e-marketplace platform in the US with a 6.3% market share in the country, to add to a global $70.3 bn of revenue, according to eMarkerter.

Regardless of these numbers, the immense scale of this retail giant is hard to miss. But have you ever wondered what sets it apart? What has made Walmart the force it is today?

Consider this: back in 1945, when founder Sam Walton, bought a retail store for a rather large sum of $25,000 to set his business dream in motion. That too in a nondescript US city of Newport, AK. It may not have been the most noteworthy of business decisions in retail history!

Yet, out of about 2.7 million such retail businesses at that time, Walmart has come to tower over anything and everything in the retail landscape, redefining the industry. Significantly, during all these years, whether Walmart pioneers transformation with innovation or plays catch up –  it just seems to know the right ingredients to win.

Similarly,  Walmart eCommerce strategy too follows a similar pattern. It brings a different perspective to achieve “Amazon-esque results”. This emphatically came to the fore, during the pandemic crisis, when Walmart flipped the narrative and dominated the game – by out-performing Amazon, the market leader, with higher sales.

Walmart eCommerce strategy is a trendsetting example, to win in the competitive industry. In this blog, let’s put the spotlight on Walmart’s business practices, and know how to build an eCommerce platform like Walmart.

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Are you considering to enter the eCommerce industry with your own business? Or, you may have an existing business that you wish to scale. 

One of the first ideas that can come to your mind can be a fashion marketplace. And indeed, that is one industry in eCommerce, that has historically gained maximum traction with consumers, making it an easier choice for newer entrants in the industry.

The stats reveal a similar picture – according to Statista, in the year 2022, the fashion eCommerce industry outperformed every other niche, generating US $870 Bn. Significantly, this figure is expected to double itself to US $1.5 T by 2027.

So, how do you begin?

To enter this industry you would need a contemporary fashion eCommerce software. For that purpose, let’s discuss the top 8 marketplace software to build a fashion platform, and how you choose between them. 

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Online marketplaces are based on the asset-light business model, which only requires business owners to invest in bare minimum capital. They do not own any of the inventory present on the marketplace. Instead, different vendors/suppliers/distributors sign up on the platform and upload their inventory. Onboarding reliable vendors is also important for marketplaces as vendors are the true representatives of their platform who not only attract customers, but also complete the entire multi-vendor value chain. Along with uploading inventory, they are responsible for product maintenance, ensuring product quality and service, thus affecting the overall brand image of the marketplace.

However, for new marketplaces, attracting vendors is one of their primary concerns. To help them out, we have stated some most effective strategies in this blog that can be used to attract vendors. Most of our clients use these strategies to attract vendors on their various marketplaces, such as retail, rental, eLearning, cab booking, food delivery and online service marketplaces.

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Last Updated: 18th June, 2024

Since the onset of the digital age, slowly and steadily, physical products around us have been turning into digital consumables, reaching users on a profusion of devices. And as these devices become an inseparable part of human existence, so do such media.

Given their significance, both their consumption and creation has spurred a digital products industry, that continues to grow impressively at a CAGR of 10.61% riding on the widespread acceptance of its almost “godsend ally” – eCommerce.

Naturally, a digital products marketplace platform can give aspiring entrepreneurs realistic short-term gains in terms of revenue generation – while also allowing them to establish a brand that is ready for a future, brimming with the possibilities of accelerated digital product consumption.

In this blog, read all about how you can build a digital products marketplace with ease.

Compelling Business Advantage of a Digital Products Marketplace

There are several reasons why launching a digital marketplace platform can be a viable business strategy. Here are a few of the potential benefits that a digital products marketplace can give entrepreneurs planning to start such a business.

• Access to a growing market: Leveraging a low barrier to entry, a Digital Products marketplace gives entrepreneurs quick access to a promising market, that is growing at an accelerated pace. 
• Lower overhead costs: With no need for physical warehouses, an absence of backend retail processes like shipping – sustaining digital marketplace operations incur relatively low overhead costs.
• Higher profit margins: With digital products, there are typically lesser production costs, which means that profit margins can be high. Moreover, exclusive products, that can attract higher prices, are easier to source.
• Flexibility: A digital products marketplace can potentially operate from anywhere with an internet connection. This can give you the option to choose the location of the operations’ main office with greater flexibility.
• Potential to scale and expand business operations globally: With lesser complexities, digital e-marketplaces are easier to scale.

However (Potential Challenges)…

A significant challenge that confronts digital marketplace startups is piracy.

• Products that you offer on your marketplace may be offered parallelly through illegal pirated channels.
• Products available on your marketplace can be pirated further.

Solution to the above challenges

Here are few methods to overcome the challenge mentioned above:

• Building a secure and robust platform that is capable of resisting online attacks.
• Intellectual property protection.
• Encrypted product license keys can further allow you to protect digital products offered on the platform.

How Does a Digital Product Marketplace Platform Work

For a deeper understanding, let’s analyze the operations and the revenue-earning opportunities in such platforms.

A digital marketplace platform works like a multi-seller eCommerce website. Participants, at a primary level, are Admin(s), Sellers, and Buyers.

Roles of participants (primary)

The Admin

Marketplace-owning authorities set up the digital marketplace platform infrastructure and assign Admin duties. The Admin manages backend operations in the marketplace.

Sellers

In a multi-seller digital marketplace platform, third-party sellers participate in offering their products to be offered on the platform. This can be exclusively or in addition to the marketplace owners themselves.

The sellers sign up on the platform, set up their virtual storefronts (if there is availability for the same on the platform) and upload the products they want to sell.

While these are seller roles at a basic level, of their operations, there is a lot more to marketplace operations for sellers – data-driven analysis, shop promotions, advertisements, and more also give sellers further opportunities to purpose-driven their business on the platform for both immediate and long-term goals.

Buyers

Buyers complete the transaction flow on the platform by browsing for listed products; comparing and evaluating products; and completing their journey by purchasing products.

Additionally, buyers may contribute to secondary activities such as user-generated content in the form of product reviews, answering peer queries, and more.

While these are the primary participants in an eCommerce marketplace, more contributors can be connected to the platform at a secondary level, participating in business generation activities, and more. For instance, Affiliates.

Popular Business Models Possible

As mentioned above, a digital products marketplace functions with 3 primary participants. The one thing that can vary, though, is the role of the sellers. And that can further depend upon the niche the marketplace operates in.

For products such as software, the marketplace sellers will be typically businesses. Such marketplace functions on the Business2Consumer model.

Conversely, for products such as creatives, a Peer2Peer business model is more suited, as sellers may include solopreneurs, freelancers, and other independent creators.

Revenue Generation Channels

Generally, a multi-vendor setup allows for multiple revenue streams. Let’s understand how Digital products marketplaces generate revenue on the platform.

Commissions

A commission fee can be charged for the sale of the products on the marketplace platform. This can further be done in two ways:

• Sale of individual items.
• Sale of bulk/bundled products. These bundles can be created as per themes, product series, or any other context that gives the users reasons to buy the bundle instead of individual products.

Listing Fees

Products listed on the platform can also be levied a fee. This fee may be one-time or recurring and can be in lieu of or in addition to the sale commissions.

Subscription Fee

The platform may choose to offer a subscription fee to the users. Generally, these are exclusively for the sellers. For the buyers, the subscription is popularly termed a membership fee. It typically entails additional benefits to the buyers.

Access Passes

Another way to model your revenue channels is by offering access passes. These work like prepaid vouchers that allow buyers access to products on the platform with preset conditions – tied to a number of days, downloads, download bandwidth and/or more. These can also be used to leverage events, festive season offers, webinars, or more.

Offer Advertising On Website Assets

The marketplace can offer the website assets like banners and others to the sellers to display relevant advertisements. A certain advertisement fee can be charged in lieu of the advertisement opportunity offered to the sellers.

While these are a number of ways in which revenue can be generated, using all of them may undermine the viability of the platform for the sellers. The marketplace business can prudently strategize the revenue streams that work best for the platform. The decision criteria normally hinge on the platform’s USP, target market, and the nature of the digital products being offered.

With an understanding of the working of a digital products marketplace let’s analyze some basic platform functionalities that can streamline platform roles for the admin and the users.

Essential Features for Digital Product Marketplace Platform to Achieve Desired Outcomes

eCommerce has come a long way since its inception – platform capabilities of established marketplaces like Amazon, and others have raised the bar in providing users with a purpose-driven experience.

Users are now accustomed to getting more out of their eCommerce experience. In fact, each time there is an update from these popular platforms, there is palpable anticipation of what to expect.

In such scenarios, getting the features right for your business will be a key consideration. Let’s understand, which eCommerce features are key to purpose-drive positive results in a digital products platform:

Multiple Revenue Channels Availability

For effectively tailoring your business in line with the products on offer, and market trends, you will need options for multiple revenue channels. Moreover, based on user response, this is one aspect that may need reconsideration as you move on.

Preview of Digital Files

In the current age, buyers like to make informed buying decisions. Product preview can help buyers to experience the product online, before making the purchase. The key to the long-term success of the business is satisfied customers, this is one step in ensuring that.

Offering Product Updates

Offering existing customers product updates can go a long way in building brand reputation. For instance, a sequel or extended copy of a popular ebook to customers who have already purchased will help foster brand loyalty. Additionally, monetizing these updates can also be considered to add revenue for the business.

Multilingual and Multicurrency Support

A digital marketplace platform is not constrained by limits of your shipping fulfilment reach, simply because there is no shipping involved! Hence, farsight warrants the need for multilingual support that allows users to browse the website in their own language. Likewise, support for multiple currencies that lets them pay in their own currency.

Extensive Marketing Features

Navigating competition, establishing the presence of the business, and building a distinct brand identity would underpin an effective marketing campaign. These campaigns are fueled by effective content, outreach, SEO, and other strategies. If the capabilities of the platform encapsulate result-driven marketing features, accordingly, the outcomes will be positive.

Advanced Search Capabilities

Digital product marketplaces can scale expeditiously due to low barrier entry for the sellers. Moreover, product definitions can be less precise for buyers to find, especially in P2P marketplaces. To navigate these challenges advanced search capabilities are a prerequisite for buyers to be able to find precisely what they are looking for.

Seller Capabilities

A P2P marketplace benefits by giving sellers capabilities to add their products effectively, sell efficiently and hence build their brand on the marketplace. This further allows the marketplace to onboard sellers easily and find their way around the chicken-egg conundrum in eCommerce. Features like separate seller storefronts, capabilities for detailed product listings, separate user panels and more allow sellers to achieve their desired objectives with a higher chance of success.

A Secure Ecosystem

System security is a challenge not exclusive to digital marketplaces but to eCommerce in general. Still, the chances of attacks are even higher as products here are in a digital format. Hence, the security of the system, payments, user data, and others are all primary concerns. A robust platform will therefore be detrimental to the long-term success of the business.

With a brief understanding of the operations and basic platform functionalities, let’s proceed further with some steps that can help in launching your own digital products marketplace.

Steps to Launch a Digital Products Marketplace

The following steps are brief of the process that needs to be followed. Each of these steps can methodically lead you to an action plan to launch a marketplace platform.

Market Analysis

Every successful endeavour is supported by precise purpose-driven planning. An extensive market analysis can give the requisite insights to tailor the business plan accordingly. The following inclusions can be part of the market analysis.

• Identify your target market – finalising a sub-niche can yield favourable outcomes.
• Gather data relating to the market.
• Understand the competition in the domain – for instance, what do they offer and at what prices. Furthermore, analyze their USPs and the market strategies adopted by them.
• Determine the user needs in the market. Users in a marketplace mean both the sellers and the buyers. The success of a marketplace depends on gaining traction with both the sellers and the buyers.
• Define products to offer on the platform.
• Identify any regulations, or legal compliances that may be required.
• Pre-determine revenue channels and pricing strategies (commission rates, subscription packages, and others)

All work done at this stage can prove to be a launchpad for the platform. Data-driven insights help in navigating uncertainties and help in formulating robust market strategies.

Finally, Create Your Online Platform

Creating your eCommerce platform will confront you with a choice between two methods.

The first one is straightforward. Employ, or hire a dedicated team, and build the platform from the start. Alternatively, the whole process can be outsourced to a custom eCommerce development company.

While this can give more control over the development process, it can be more time-consuming and resource intensive. This process gains significance if the outcome includes extensive distinct requirements. For instance, enterprises that are considering leveraging their internal systems with the digital marketplace platform.

Unless that is the case, there is another way…

Just like key functionalities, platform underpinnings can be predetermined, and are the same for contemporary digital marketplaces – pre-built solutions can be used instead of the traditional process of custom building the entire eCommerce platform.

This is where readymade eCommerce marketplace builders for digital marketplaces come into the picture.

Depending upon the choice of the solution, certain readymade marketplace builders can be used to launch a digital marketplace in a matter of days!

And that is your second choice, leverage a turnkey solution to cut down on custom development process if desired outcomes don’t entail extensive personalization – to gain a competitive advantage of a less resource-intensive process with faster Go-To-Market time.

Leading turnkey eCommerce marketplace solutions for digital products, are also customizable and scalable, and allow future platform additions, if needed.

How can FATbit Help

FATbit Technologies is a leading software development company that leverages extensive domain expertise in the eCommerce ecosystem. It offers Agile eCommerce development services covering diverse niches across the eCommerce ecosystem.

Additionally, FATbit offers a readymade eCommerce marketplace solution, Yo!Kart, that can let you launch a digital marketplace straight out of the box.

Yo!Kart – Leading MultiVendor Marketplace Solution

Yo!Kart is an industry-leading self-hosted multi-vendor software that comes with a range of eCommerce functionalities that can power contemporary digital products marketplaces.

Furthermore, it offers multiple pre-built API and payment gateway integrations, essential modules, and more.

The customizable software is self-hosted and is offered in one-time payment packages. Yo!Kart has been used by clients globally to power platforms that include digital product marketplaces.

You can launch your own digital products marketplace in a matter of just a few days using Yo!Kart.

Regake – Yo!Kart-Powered Digital Products Marketplace

Regake is a digital products marketplace for gaming products powered by Yo!Kart. It functions in multiple countries and offers gaming enthusiasts access to the best games, which also includes some rare titles.

For achieving the goals, some customization was required to meet the client’s specific needs. Some additional enhancements were made to product handling, commission management, and more. The result is a global platform for gaming enthusiasts.

Wrapping Up

As eCommerce continues to transform digital sales channels – consumers are increasingly getting accustomed to eCommerce as the primary touch point for all their needs.

While the eCommerce industry has been on the rise for the past few years, starting with an online platform continues to be a favourable business proposition.

Also, future promises bode well with an expanding consumer base and a larger variety of products on offer.

Also as technology continues to advance, digital products are likely to evolve further, enabling immersive experiences through virtual and augmented reality. The digital product landscape continues to expand, offering boundless possibilities for innovation, convenience, and creative expression in our increasingly digital world.

That said, starting with a digital products marketplace is a lucrative opportunity to start with an eCommerce business with a low-barrier entry niche.

Using a rich-featured readymade solution like Yo!Kart, and following a data-driven methodical approach, you can set a launchpad for a sustainable market impact.

Last Updated: 20th June, 2024

Sellers in the B2B domain are increasingly turning to B2B eCommerce platforms to conduct their business activities. According to research, the B2B eCommerce market in the US is expected to reach USD 8,573 billion by 2030, accounting for a CAGR of 21.6%.

Globally, B2B eCommerce is gaining steam and the significant driver of this growth is Amazon Business which is a B2B marketplace platform by Amazon. Among all B2B platforms, it has maximum traction with small and medium enterprises. Moreover, according to Statista, its gross merchandise volume is projected to reach USD 83.1 billion by the year 2025.

According to Gartner, about 80% of B2B sales interactions will take place through B2B eCommerce platform channels by the year 2025. This figure has seen a huge jump from the year 2021. The key factor driving this upsurge is customer demand. Moreover, online sales now drive about a fifth of all revenue for an average B2B company. This figure equals in-person sales for these businesses and exceeds all other channels. As retail giants like Amazon business surge ahead, B2B sellers are realizing the importance of an online marketplace to keep up with the competitors.

While these numbers indicate a rising opportunity to start with your B2B eCommerce platform, you might be wondering what is the best way to do so. The answer is easier than you might be aware of. The industry has some very capable B2B eCommerce software available. In this blog, let’s discuss the most favored options amongst such software.

What is a B2B Multi-vendor eCommerce Marketplace?

Like Amazon business, a B2B (Business-to-Business) eCommerce marketplace typically has sellers (including brands, manufacturers, wholesalers, and suppliers) selling products in bulk to other businesses (buyers).

Both sellers and buyers in a B2B marketplace platform are businesses where payments are usually carried out digitally on the eCommerce platform.

To make your journey easier to launch a multi-vendor e-commerce marketplace we have compiled a list of the top B2B eCommerce Software below:

• YoKart B2B
• CS-Cart
• BigCommerce Enterprise
• Magento
• PrestaShop
• OroMarketplace
• Mirakl

Top B2B eCommerce Software For Multi-Vendor Marketplaces

YoKart B2B

• Introduction – Yokart B2B is a self-hosted multi-vendor B2B eCommerce solution that lets startups or existing businesses build a contemporary online marketplace. It is the B2B-specific software by the same team that has developed the leading B2C multivendor turnkey solution – YoKart. This turnkey B2B ecommerce solution is customizable and scalable, making it equally suitable for SMBs as well as large enterprises. YoKart B2B has been developed from the ground up, perfected, and backed by Agile teams for customizations and support. This has resulted in a secure, robust, and reliable solution. Team YoKart has taken the same trusted underpinnings used for a Fortune 500 brewing company, UNI Diamonds – Israel’s biggest B2B diamond distributor, and many other steller B2B eCommerce platforms.
• Features – YoKart B2B marketplace software has been purpose-built to offer domain-specific features and more. The following features, integral to B2B success – come out of the box in the turnkey solution:

1. YoKart B2B has an in-built RFQ module that is usually offered at an additional cost by other B2B solutions. It lets buyers place a quote for products listed on the website. The sellers can accept, reject, or present a counteroffer. The control for the RFQ module is with the sellers and the admin of the marketplace.
2. The marketplace solution offers manufacturers, distributors, and other sellers intuitive B2B features. It has functionalities like personalized vendor storefronts, automated shipping management, offering part-payments, setting minimum order quantity for products on sale, bulk ordering with the option of adding bulk discounts, and more.
3. YoKart B2B also allows the sale of services with products, either bundled or exclusively. This further broadens the scope of the marketplace.
4. The intuitive solution has been built to offer satisfying end-user experiences. The most notable features include multicart checkout, one-click re-order, multiple payment gateways pre-integrated, cart abandonment recovery solution, easy registration and social login, multilingual and multi-currency functionality, supplier search, the ability to add reviews, and much more.
5. The marketplace owners can run successful businesses underpinned by features like PWA compliance, ease of business operations with pre-integrated business APIs, the option to hide prices at admin and seller level, measuring business health with detailed reporting and analytics, multiple revenue streams including subscription fee, commission fee, PPC, and more.

• Pricing – The prices of the B2B-specific version of the multi-vendor platform start from $1499. Customizations can be availed with the support of an Agile team. Charges for the customizations are over and above the package. With every YoKart B2B package, you receive lifetime ownership with free installation and no recurring fees.
• Software reviews and ratings – With no additional hidden costs such as on platforms like WordPress, Prestashop, WooCommerce, Joomla, and others, YoKart B2B offers Agile technical support, which is very important during the initial phase of business. But, given its comprehensive nature, first-time users’ only concern is that they need to invest time to learn the system. Yo!Kart has a rating of 4.6 on G2,  and 4.2 on Capterra.

Launch B2B Multivendor Marketplace with Yo!Kart: Schedule a Free demo

CS-Cart

• Introduction – Founded in 2005 in the US, CS-Cart is a reliable multi-vendor software for marketplaces. The eCommerce software is suitable for enterprises with complex requirements. It offers a customizable storefront, advanced admin panel, and integrations with major shipping and payment services. While it is a B2C software out of the box, paid B2B features can be added to the solution. 
• Features – The top features of CS-Cart include real-time shipping rate estimation, tax management, CRM, multi-store management, and more. With CS-Cart one has the ability to manage the newsletter and send mass notifications with ease.
• Pricing – While, the CS-Cart B2C package incurs recurring charges ranging from $1250 – $6950 per year, the B2B-specifc solution is Request For Quote. There’s 1 month of free technical support with B2B package.
• Software Reviews and Ratings – Hassle-free accounting and the ability to create your own promotions. But any tweaks done to the marketplace are lost during upgrades switching it to default. Also, users often complain about the failed update system, bad internal policies, and poor customer support (only available during GMT+4 business hours). CS-Cart has a rating of 4.7 on Capterra.

BigCommerce Enterprise

• Introduction – BigCommerce is a flexible, open Saas-based platform to launch your eCommerce business with ease. Founded in 2009, BigCommerce enables you to launch a B2B eCommerce store that is easy to customize. The modernized platform allows you to build sleek site designs with customers and price segmentation. Plus, you can easily integrate existing business tools with one-click integration.
• Features – BigCommerce has several key features for a successful eCommerce marketplace. Its most notable features include customizable design themes, abandoned cart savers, pre-integrated payment options, professional SEO tools, and more. It is a highly valuable platform for an online marketplace setup.
• Pricing – BigCommerce is a subscription-based platform with a starting price of $29.95/month. Its Plus plan costs $79.95/month and the Pro plan comes at $249.95/month. Also, it offers a free trial to users. For pricing information on its enterprise plan, contact the BigCommerce team.
• Software Reviews and Ratings – A useful platform to launch your eCommerce store. But, the most frequent complaint from users is that the support sometimes has no idea about the ongoing issue which is a bit frustrating. Also, the themes are pretty similar and there’s a limit on yearly sales forcing you to upgrade. BigCommerce has a rating of 4.3 on Capterra.

Magento

• Introduction – Open source multi-seller eCommerce platform founded nearly 12 years ago in 2008, Magento is designed for both small-scale and large organizations in the retail industry. It allows you to edit, create, and manage eCommerce websites offering a personalized consumer experience. The platform is easy-to-customize and allows seamless third-party integrations.
• Features – Magento offers features like custom coupon creation, SEO management, product review promotion, multiple payments and shipping options, and more. The platform is PCI-DSS compliant.
• Pricing – While Magento’s open-source version is free-to-download, the starting price for Magento Commerce is $1988/month. There is a free demo available.
• Software Reviews and Ratings – Magento is among the most comprehensive products with several add-ons and options available. But there are several users who complained about how hard it is to use and customize. Also, there are continuous security issues that forced businesses to switch to another platform. Magento has a rating of 4.3 on Capterra.

PrestaShop

• Introduction – PrestaShop is a free, open-source, downloadable eCommerce software better equipped for mid to large-scale businesses. Founded in 2007, the software enables users to create a fully-functional online store at the lowest possible cost. PrestaShop is highly customizable, supports numerous integrations, and has a strong user community.
• Features – While being a free eCommerce solution, PrestaShop offers several key features like inventory management, multi-channel marketing, loyalty programs, multilinguistic, multicurrency, and more. It even has advanced in-built SEO features for greater visibility.
• Pricing – PrestaShop is 100% free software with no hidden fee or commission on sales. But, it isn’t the easiest software to use. Modules and add-ons come at a steep price while integrating with the likes of Quickbooks or Amazon costs a pretty penny. Initially, it may be free, but you have to pay for web hosting or even hire a developer which might make it more expensive than even self-hosted options.
• Software Reviews and Ratings – PrestaShop engine has developed several useful extensions and the default theme is surprisingly useful. But users often complain about how difficult it is to customize the appearance. Also, the modules on which the platform relies are truly expensive. PrestaShop has a 4.2 rating on Capterra.

OroMarketplace

• Introduction – OroMarketplace is a B2B eCommerce software that has been built for B2B users. It has been built to provide enterprises key capabilities to navigate complexities that typically surround their eCommerce ambitions. It is flexible software offering multiple hosting options. 
• Features – OroMarketplace packs in efficient customer management functionalities with the inclusive CRM systems. It is built with a flexible architecture that support enterprise legacy system integrations. It can allow businesses to automate eCommerce activities such as seller onboarding, RFQ, and more.
• Pricing – Pricing for OroMarketplace is available via Request For Quote 
• Software Reviews and Ratings – OroMarketplace has been built for B2B eCommerce and does offer some nifty features. That said, the B2B eCommerce solution can get pricey. Moreover, there are complexities and a relative lack of control for the Admin that users find the most significant impediments. OroMarketplace is rated 4.3/5 on G2

Mirakl

• Introduction – Mirakl is a versatile SaaS eCommerce platform that can be used for eCommerce platforms supporting both B2B and B2C business  models. Developed by a France-based company, this B2B eCommerce platform is more tailored towards use by enterprises. 
• Features – Mirakl supports multiple monetization channels, that are key to efficient multi-tenant operations. It even has an advanced product recommendation engine. The system however lacks key capabilities to sell digital downloadable products. 
• Pricing – Pricing for Mirakl is available via Request For Quote
• Software Reviews and Ratings – Mirakl is a robust B2B eCommerce software used by some renowned names in the industry. That said, the costs for using this B2B eCommerce platform can be higher. Moreover, it is backend-only system and companies will need to build front-end for this solution. Mirakl is rated 4.5/5 on G2

Comparison Chart – Brief Analysis

Frequently Asked Questions

Q1. What is a multi-vendor B2B marketplace?

Ans: A multi-vendor B2B marketplace has three participants – Owner/Admin, Sellers, and Buyers. The business is owned by an intermediary that typically sets up the eCommerce website infrastructure, manages it, and may offer backend operations such as shipping fulfillment to the sellers.

The business further invites multiple third-party B2B sellers to register and sell their products and services to potential B2B buyers on the platform.

Q2. What are the top 5 B2B marketplace websites currently conducting operations?

Ans: Amazon Business, Alibaba, Rakuten, IndiaMart, and Global Sources are the top five B2B eCommerce marketplaces globally. While Alibaba dominates the market with a 30% share in China followed by Global Sources; Rakuten, IndiaMart, and Amazon are the largest B2B platforms in Japan, India, and USA respectively, according to a Statista study.

Q3. Why Request For Quote (RFQ) module required in B2B eCommerce Platforms?

Ans: B2B interactions between buyers and sellers differ from those in the B2C domain. Sellers have a multi-prong strategy toward their product prices. Typical considerations may include branding requirements, stock levels, market demand, order volume, buyer relations, and many others. This is the reason why a Request For Quote module is a quintessential requirement in a B2B eCommerce platform. It allows sellers to stay open for negotiations for the prices of their products. The RFQ module assists in a two-way negotiation interaction and allows sellers to close the deal by meeting their price criterion, and also stay competitive. 

Q4. What is a B2B eCommerce? Who are the users in a B2B marketplace? 

Ans: A B2B eCommerce is the sale of goods/services between businesses digitally via an online portal. These are prominent types of sellers in B2B eCommerce: 

Raw Material Suppliers: These are suppliers that provide semi-finished or raw materials to the manufacturers. 

Manufacturers: Manufacturers procure raw material, process it, and further supply it downstream to distributors, wholesalers, or even other manufacturers. 

Distributors: Brand distributors are the link between manufacturers and entities further downstream – wholesalers and/or retailers. 

Wholesalers: Where businesses purchase goods in bulk and at a lower price from wholesalers.

Retailers: Retailers are the last point in the supply chain. These will sell the products to the end consumers. 

Q5. What is the cost of a B2B eCommerce software? 

Ans: B2B eCommerce software comes in multiple types. They can be SaaS-based or self-hosted. Moreover, the features and inclusions vary vastly as well. Accordingly, the price of the software varies. 

SaaS-based like Shopify comes with recurring rental/subscription costs. 

Open source like Prestashop is free to download but the scope of customization is high. Accordingly, customization teams are needed and the total cost is as per the customization availed. 

Self-hosted like YoKart B2B, are license-based and comes with a one-time payment option. 

As mentioned in this blog, YoKart B2B prices currently start at US $1499. 

Q6. What is the Role of inventory management in B2B eCommerce Platform? 

Ans: Inventory relates to the product stock that sellers have allocated to sell on the online marketplace platform. Inventory management features such as low stock alerts allow sellers to keep a tab on that stock. Thus with inventory management sellers can avoid both understocking and unnecessary overstocking – thus maintaining product stocks at optimum levels. 

Q7. How do I choose a B2B marketplace software?

Ans: To find the ideal B2B marketplace software for your business, look out for the following factors:

A Readymade solution with In-built features/integrations: A turnkey multi-vendor platform is one that delivers an online marketplace with all essential eCommerce features like bulk discounts, multiple payment methods, vendor subscription plans, and more shipped out of the box.

Competitive pricing: Pricing is an integral factor when choosing a B2B eCommerce platform. Solutions that pack all the essential features even in a base package offer full value for money to business owners.

Customization: A customizable platform that can be personalized to cater to your business requirements is a great asset. Since not every solution allows customization, choosing the right eCommerce platform is imperative.

Scalability: The ability to handle system processing demands either through modifications to an existing module or by integrating new modules is termed as scalability. A scalable solution is vital for business growth.

Built-in marketing tools: From email marketing, and real-time analytics to in-built SEO support, there are several marketing tools that are essential for businesses’ marketing strategies. These tools should come pre-integrated into your choice of eCommerce platform. 

Q8. Which is the best B2B eCommerce multi-vendor platform?

Ans: YoKart B2B is the best B2B eCommerce software with a comprehensive list of all essential eCommerce features, expert technical support (free for 1 year), the ability to customize, highly scalable, and more. The platform offers a complete package to kick-start your B2B marketplace and streamline eCommerce operations.

Ecommerce – An Evolution Toward Specialization

A lot many things in the world have followed this similar trend. Starting with a concept that has more mass appeal, attracting people to the idea – the experience, but gradually evolving to imbibe specialized roles – offering a tailored, custom-built solution to perform these specific roles, better – opening up new horizons, and possibilities.

Retail itself, evolved from ancient human civilization moving from individuals performing all roles to singular roles. The division of Labor led to the barter system, which eventually gave way to open marketplaces. The process was streamlined further in the medieval world with the concept of Shops. Finally, the modern era introduced the idea of departmental stores from the beginning of the twentieth century to mass retailers in the middle period. Nevertheless, the most significant disruption in the retail industry came at the end of the century – eCommerce.

A recent memory bias notwithstanding, eCommerce has truly opened up the door for retail, opening up opportunities like nothing else before it. And in itself, eCommerce has now been following a similar trend. Starting from generalized horizontal marketplaces like Amazon to maturing and accommodating specialized vertical marketplaces for eCommerce Niches.

Although, marketplaces for specific niches have been gaining steam ever since the launch of Etsy in 2005. Some niches are not yet fully utilized. B2B eCommerce is one such niche. However, in recent times, the need for B2B platforms is growing steadily, as businesses are exploring opportunities in the B2B eCommerce space.

If analyzed, a common thread across the evolutionary curve of retail is the supporting role played by innovations – from better equipment, use of currencies, better mobility, to the development of the digital infrastructure. All have played their part in the progression of the retail sector.

Likewise, eCommerce today needs specialized software for specific needs. Unlike in the B2C ecosystem, B2B entails distinct complexities that B2C platforms simply can’t support.

In this article, we discuss the growing importance of a purpose-built solution for B2B marketplaces. Furthermore, how B2B requirements are met by result-oriented features of a marketplace platform.

Table of Contents

• B2B Ecommerce – Distinct Requirements
• Yo!Kart B2B – A vision to drive the future of B2B marketplaces
  – Flexible and Complex Pricing strategies
  – Streamlining Longer sales Cycles
  – High-Value Transactions
  – Buyer-Seller Relationship
  – Broader scope of the marketplace
  – Essential eCommerce Features
• Customizability – Flexibility to stay Agile
• Wrapping Up

B2B Ecommerce – Distinct Requirements

One key reason for the relatively slower eCommerce adoption in the B2B industry has been how platform participants engage with each other – buyers are businesses with a different approach to purchases, unlike end consumers. Let’s understand this difference with the table below:

As evident, B2B has a differentiable modus operandi for sales and hence distinct requirements. Thus, a one-size fits all eCommerce platform will not suffice for B2B needs. The platform needs exclusive mechanisms to facilitate businesses in conducting their operations.

And this is where Yo!kart B2B ecommerce software comes in. Let’s first, take an overview of why FATbit considered to launch the solution.

Yo!Kart – A Brief Introduction

In 2015, FATbit technologies, with its decade of eCommerce experience launched its first eCommerce platform – Yo!Kart. The solution was built from the ground up, using all the company’s accumulated knowledge of the industry.

The idea was simple. Develop a versatile solution to give entrepreneurs/enterprises customizable and scalable software to seize the big eCommerce opportunity. Some key highlights that made Yo!Kart carve its own space in the eCommerce software industry are shared below:

• An extensive list of result-oriented features, offered built-in 
• A Multi-Vendor marketplace software out of the box 
• Self-hosted and license-based. Available for lifetime use with one-time payment 
• Customization support from an in-house Agile team 

The software gained instant traction, and ever since 2015, 5000+ global marketplace businesses have been built using the readymade solution.

And in these thriving businesses, there have been B2B marketplaces as well. For instance, UniDiamonds – enterprise B2B marketplace for diamond trade, a liquor marketplace for a Fortune 500 company, Bozinga – America’s B2B platform, and others.

Having worked closely with global B2B businesses, from startups to enterprises, Team Yo!Kart has been able to accumulate core learnings about the quintessential requirements that drive growth in this industry.

Based on these interactions, the current market trend, and the rising opportunities in the B2B space, the need for a readymade B2B solution was felt.

Yo!Kart B2B – A Vision to Drive The Future of B2B Marketplaces

Working with its core strengths, FATbit worked to develop a versatile readymade solution that can fit the requirements of B2B marketplaces The solution was developed from scratch, including quintessential requirements, addressing the needs of a broad spectrum of B2B businesses.

The solution meets B2B-specific requirements in the following ways

Flexible and Complex Pricing Strategies

Dynamics involved in B2B relations may warrant flexible pricing strategies by sellers. Factors such as a higher volume requirement, long line of credit (if applicable), branding dynamics, market demand opportunities, or varying supply chain complexities may be some of the multiple factors driving pricing for businesses. 

Negotiations thus can be an essential component of most B2B transactions.

Features in Yo!Kart B2B to aid negotiations:

RFQ Module

An intuitive built-in RFQ module in Yo!Kart B2B marketplace software helps buyers to quote an offer. The sellers can further accept, reject or place a counteroffer.

Source: * RFQ form for buyers in Yo!Kart B2B

Suggested Read: How RFQ module works in Yo!Kart B2B marketplace solution.

Hide Product Prices 

To allow sellers to engage in negotiations, there is an option for them to hide the prices for their products and services.

Streamlining Longer Sales Cycles

Although the length of a sales cycle is unique for most companies and directly related to procurement processes within a company. A B2B online marketplace platform can streamline the process with specific features. Some of these features might help to shorten the cycles as well.

Features in Yo!Kart B2B to streamline sales cycles in B2B by allowing sellers to provide requisite product information effectively:

Downloadable Digital Media

To smoothen the sales process, all relevant information regarding the products can be made available on the B2B platform itself. For instance, relevant inspection certificates, product documentation, and others. Once these are available on the platform, all concerned stakeholders and decision-makers can access these and take faster action.

Product Catalog with Extensive Features

Qualitative information will be key to facilitating B2B transactions. An intuitive product catalog for sellers that allows them to add comprehensive product descriptions will help the buyers arrive at buying decisions – better, and faster.

Source: * Seller Dashboard in Yo!Kart B2B

High-Value Transactions

B2B transactions can typically be of high value and greater volume. The B2B marketplace platform can help in both, allowing sellers to encourage such transactions and fostering an ecosystem wherein these transactions are carried on smoothly.

Features in Yo!Kart B2B for high-value transactions:

Bulk Order Discounts  

With this feature, sellers can offer discounts on high-volume orders. By offering discounts, sellers can generate higher sales, by displaying the advantage of buying in greater quantity.

Minimum Order Quantity

Sellers can set a minimum quantity below which they do not wish to entertain orders. This can help them to plan pricing strategies, logistics, and the rest of the business strategies more efficiently ― around the minimum order, they plan to provide.

Flexible Payment Options

With the option of Part-payments in the system ― buyers can manage payment for their purchases and sellers get a window to manage the order. Especially in scenarios where the order requires greater processing times, the business deal extends for a longer period, or the quantity/value of the order necessitates flexible payment terms.

Robust Payment Gateways 

To provide seamless and reliable high-value transactions for businesses, Yo!Kart B2B ecommerce software comes pre-integrated with 20+ payment gateways. This helps marketplace owners to offer a global ecosystem of secure and efficient payment processing.

Buyer-Seller Relationship

Unlike end-consumers, businesses rely more on the long-term viability of their purchases. If the buyers are distributors or resellers and intend to resale the procured products, they will need to procure the products on a consistent basis, to offer a similar product in the market, under their brand. Moreover, a significant effort has to be invested in marketing the products, so trust and a consistent/efficient supply of the sourced products, are even more important.

Similarly, businesses that intend to use the products within their organization may need the products on a consistent basis for predictable, seamless, and sustainable utilization.

Features in Yo!Kart B2B for building trust between buyers and sellers:

Direct Buyer-Seller Interaction

This helps to foster engagement between buyers and sellers in the marketplace, aiding in building trust.

Individual Seller Storefronts 

Customizable individual seller storefronts, help the sellers to establish their brand more effectively. Likewise, buyers can relate more with the sellers.

Broader Scope of the Marketplace

The procurement needs of buyers in the B2B space varies. Buyers can be manufacturers, considering to source products as raw material. Moreover, greater emphasis on ROI means buyers may want to source products at competitive prices, from the source itself.

Yo!Kart B2B allows one to launch and scale their marketplace platform for a broader audience, with the following features:

Offer Services with Products

Services can be offered alongside the products, either bundled with the products or exclusively. Likewise, buyers can buy services exclusively.

Multilingual and Multicurrency 

This can allow the business to onboard sellers from a varied geographical region, allowing the marketplace platform to enhance its scope, and offer more value to the buyers.

Essential Ecommerce Features

Apart from distinct features that allow a platform to cater to B2B specific needs, a B2B marketplace also has to facilitate regular eCommerce operations. Moreover, with the progression of eCommerce across industries, the users are acclimatized to eCommerce from an individual perspective. Even thorough, they may be operating in a business environment, still, they expect the platform to operate similarly to popular B2C marketplaces.

For this reason, a B2B marketplace has to offer essential eCommerce features to the users for a complete experience.

Yo!Kart B2B ecommerce platform has been developed to offer value to all platform participants ― the Admin, Sellers, and Buyers.

Some Key Features in Yo!Kart B2B for effective eCommerce operations are as follows:

• Supports Multiple Revenue streams ― Commissions, Subscription Modules, PPC, and Advertisement monetization. 
• Extensive Reports and Analytics for data-driven business decisions. 
• Dedicated and exclusive user panels for Admin, Sellers, Buyers, Affiliates, and Advertisers. 
• Result-driven marketing features along with an Affiliate module to drive conversions. 
• Efficient support for eCommerce operations like Shipping, Tax, Accounting, Inventory management, and more. 
• API-driven ecosystem with multiple business APIs offered pre-integrated with the system and a versatile architecture that can support further customizations. 

Customizability – Flexibility to Stay Agile

The evolution in eCommerce is in a state of constant flux. In fact, with online sales attracting investments, new startups, and the interest of small businesses to larger ones ― the industry keeps introducing new possibilities.

Likewise, buyers’ expectations have been growing – to expect more.

With eCommerce – Change is the only constant.

To steer through these changing times, online businesses have to stay Agile ― defining their presence in the market with a purpose-built platform ― and responding to the change with additional value for all the participants.

And this Agility gives businesses a competitive advantage throughout the eCommerce lifecycle.

While FATbit’s versatile Yo!Kart B2B marketplace platform  not only gives businesses the advantage of a platform that meets the needs of a contemporary global B2B marketplace but it also gives them the opportunity to customize the platform considering any specific nuances of their eCommerce strategy.

Furthermore, mid-cycle consolidation, or refocusing on growth after achieving initial goals, can also be well achieved with the customizable Yo!Kart B2B.

FATbit’s in-house customization team gives online businesses the opportunity to meet these goals precisely, efficiently, conveniently, and predictably.

Wrapping Up

B2B suppliers have been keen to adopt an online sales channel considering the significant advantages, evolving trends, and consumer expectations. Given the positive market scenario, B2B eCommerce marketplaces have the opportunity to provide these B2B sellers with a purpose-built platform.

Yo!Kart B2B ecommerce platform  has been developed to provide entrepreneurs with a solution that facilitates seamless online B2B interactions. A range of result-oriented features complements a secure and robust architecture, along with a high-performing core engine.

Furthermore, added advantages of one-time payment ownership and the support of in-house customization extend a competitive advantage to businesses for their entire eCommerce lifecycle.

Operating an online eCommerce platform is a heavy set of burdens. From attracting customers and popular sellers to your platform, managing deliveries, payment processing, and handling customer queries, it’s easy to get bogged down if you haven’t got the technology to manage it all for you.

Yo!Kart has broken new ground as a robust multi-vendor marketplace software with its spectacular capabilities to build and manage eCommerce marketplaces. We are excited to announce the V10 release of Yo!Kart that can add new dimensions to your eCommerce businesses.

From data migration, listing digital products, offering discounts & coupons, streamlining payments & shipping, and defining review parameters, the new version will offer a truly dynamic selling and buying experience. Here’s what to expect in this release in more detail:

Table of Contents

• New Features
  – Data Migration from Shopify to Yo!Kart
  – Admin Shipped Product Listing Page
  ― Listing of Digital Products
  ― Product Ribbons
  ― Product Badges
  ― Payment Gateways
  ― Shipping APIs
  ― Rating/Reviews
  – Missing Product Information
• Enhancements
  ― Performance Updates
  ― User Experience and Enhancements
  ― Alert & Suggestion Text Bar (Admin)
  ― Tax Module Enhancements
  ― Stripe Connect Enhancements
  ― Product Addition Enhancements
  ― Inventory Form Enhancements
  ― Theme and Font Enhancements
  ― Shipping Module Enhancements
  ― User Management Module Enhancements
  ― GDPR Enhancements
  ― Reports Enhancements
  ― Listing Page Enhancements
  ― UI/UX Enhancements

• Final Thoughts

New Features

In Yo!Kart V10, business owners now get a unified workspace that connects all the dots of an eCommerce business: seamless shipping, hassle-free data migration, smooth payments, customizable product ribbons, and badges, offering a better interface for sellers and buyers. Let’s check out all the new features Yo!Kart V10 is bringing to enable eCommerce entrepreneurs to serve even better.

Data Migration from Shopify to Yo!Kart

Data Migration from Shopify is now supported in Yo!Kart V10. Admin and sellers can transfer all of their important data including products, customers, orders, sellers, and entities related to them from Shopify to Yo!Kart automatically, accurately, and securely. The software ensures no downtime on the current store, proper data transfer, and dedicated support during and after the migration to Yo!Kart.

Admin Shipped Product Listing Page

Admin can see the list of the sellers who have shipped the Master Products themselves. The master products that are shipped by the admin are also displayed on the listing page. Shipping profiles linked with the products can also be viewed by the admin.

Listing of Digital Products

Sellers/admins can add the preview (audio/video) of digital products like eBooks where buyers can view the sample/preview to get an idea of the product before making the purchasing decision. This trending feature of eCommerce is now available in Yo!Kart V10 by integrating JW Player plugin that gives your store an edge with increased conversion rates and efficient customer experience eventually reducing product returns.

Sellers and admins also have this option to attach the latest updates to the digital products with the orders that are already placed. Enabling this will send an update to the buyers who have already placed their orders.

Product Ribbons

Admin can create product ribbons (colored labels over product photos) for the products that require a spotlight. These ribbons make it easier for the customers to find the products they would truly love and help you to put your store’s best foot forward. Admins will have full control over these ribbons and can monitor and adjust everything from the dashboard.

Product Badges

Yo!Kart V10 comes with product badges which are textual and graphical labels used to highlight items in the store to draw the user’s attention immediately. These badges can be used to tap into powerful psychological triggers such as scarcity, social proof, and urgency to boost sales. The product badges are created by the admin and are of two types – manual and automatic.

Manual badges are needed to be linked with the shop/product by the seller which can with er be done directly or by requesting the admin. Automatic badges are automatically linked with the shop/product if it fulfills the conditions defined by the admin while creating the badge such as ratings, order cancellation rates, order completion rates, and many more.

Payment Gateways

With already more than 20 payment gateways integrated into Yo!Kart, Version 10 comes pre-integrated with 4 new payment gateways – Mollie, Payfast, YoCo, and QNB to streamline the sales conversion funnel even more efficiently. These multiple payment gateways ensure that your business is able to collect and disburse payments safely in any corner of the globe.

Additionally, multiple payment gateways would not only satisfy the choice of customers who have a couple of selected payment gateways in their mind but would also serve as a backup when there is downtime in any of the payment gateways. There will be no hindrance in continuing your business with multiple payment gateways that can fill each other’s gaps.

Shipping APIs

With ShipStation and AfterShip already integrated into Yo!Kart, the new version comes pre-integrated with 3 more shipping APIs – Shiprocket, EasyPost, and ShipEngine. The multiple shipping APIs allow you to compare shipping rates across all carriers and choose the best fit.

Reduced checkout abandonment, automatically validating addresses, real-time tracking, less time spent on tedious shipping tasks, and increased efficiency are some of the benefits offering a powerful competitive advantage for your eCommerce platform.

Rating/Reviews

Admin can now define new review/rating parameters at the time of creating a new product category. Additionally, the product, seller, and shipping can be reviewed and rated separately to have more transparency. Buyers can view the separate ratings for every parameter and not based on the average of all the ratings to make an informed decision.

Missing Product Information

There are around 20 parameters defined under the product/inventory module which are to be filled by the admin/seller before listing a product. Failing to fill in all these details of the product will prevent the product from displaying on the front end.

Enhancements

The enhancements and upgrades in Yo!Kart V10 include:

Performance Updates

Enhanced/updated cache mechanism to make your system optimized and enables you to perform the action quickly.
Dashboard segregation has been executed at the code level which again enhances the functionality of the system and ensures optimum utilization of resources.

User Experience and Enhancements

• Buyers do not need to set passwords for their accounts, they can register and log in via OTP.
  Fresh and new UI/UX for front end and admin dashboard.
• A help text section has been added on the Admin side for the majority of the Primary Pages explaining the steps and impacts associated with functionalities. It appears on the right side of a page at the Admin’s end.
• A sorting feature has been introduced on the listing pages to perform bi-directional sorting operations.
• User experience improved for All Categories page and Seller’s Shop page.
  Intensified the use of SVG sprite images (Vector-based) and grouped its management in a more easy way.
• Increased the number of layouts for Categories, Products, Banner, Brands, etc.
  Comparison of different sellers’ prices on the Product Detail page offering more options to the buyers.

Alert & Suggestion Text Bar (Admin)

An alert and suggestion bar has been introduced at Admin’s end to display the necessary information to be kept in mind (as a warning/recommendation) while filling/configuring the details related to that module or submodule.

Tax Module Enhancements

Introduced new form fields while setting up Tax rules in order to handle various to-from workflows.

Stripe Connect Enhancements

• The seller onboarding workflow has been updated to a Stripe-hosted platform personalized page.
• Added payout delay settings under the Admin.
• Updated the payment page to the stripe-hosted solution.
• Removed the saved card functionality.
• Enhanced support for EU countries.

Product Addition Enhancements

• Single Page Flow: Every detail related to a Product can be filled/managed in one go and    Admin/Seller does not have to go through multiple tabs.
• Language-specific flow
• Product-specific Options Linking at the Inventory level: Once you have created a product, linked options to it, and then, added the inventory details for all the variants, you cannot go back to the Product Form and link more options to that product. However, you can add more option values for the options that have already been added to that product.

Inventory Form Enhancements

• Updated the inventory addition workflow.
• Once a seller configures product-related details, the system will automatically generate product variants listing depending upon the linked Options’ permutation and combination for that Product. But this will be the case when the Product options combinations count is below 20. If this count is greater than 20 then the user has to manually configure the Product inventories.
• The seller can add additional files while completing a digital order.

Theme and Font Enhancements

• Included Google Font feature in the system facilitating the user experience.
• Enhanced the color theme module with preview options.

Shipping Module Enhancements

• Option for Sellers to configure their own shipping APIs in the Dashboard.
• Option for Sellers to use manual rates with shipping API (Admin configured/Seller configured).
• Option for Sellers to use preferred API regardless of Admin’s side settings.

Note: We have proper documentation for the Shipping module covering multiple case-based scenarios.

User Management Module Enhancements

Admin now can create users in the Platform.

GDPR Enhancements

• Users can set their cookie preferences that can be used by the system based on their consent.
• Guest user data is stored in cookies while registered user data is stored in the database.
• Added management of functional, statistical, and personalization cookies.

Reports Enhancements

1. Sales
   – Sales over time
   – Products
   – Product Variants
   – Shops
   – Customers
2. Users
   – Buyers
   – Sellers
   – Affiliates
   – Advertisers
3. Financials
   – Earnings
   – Profit by-products
   – Preferred payment methods
   – Payout
   – Transactions
4. Subscription
   – By plan
   – By seller
5. Discount Coupons

Listing Page Enhancements

• Added maps listing view for Products containing the Shop details and Price details corresponding to the Products available in this Shop.
• Added map view for all Shop listing pages.
• Option to increase the price of a product based on dates (Price Surge – Managed under the Admin>Promotions>Special Price Module).

UI/UX Enhancements

• User experience improved for All Categories page and Seller’s Shop page.
• Intensified the use of SVG sprite images (Vector-based) and grouped its management in a more easy way.
• Increased the number of layouts for Categories, Products, Banner, Brands, etc.
• Comparison of different sellers’ prices on the Product Detail page offering more options to the buyers.

Over to You!

The core user experience remains the highest priority for us here at Yo!Kart and along with the latest features, this release tackles a bunch of enhancements. That’s all from us for now! We’ll be back again with all the updates that our team is working on currently.

Until then, connect with us to have a chat about anything you might want to know about Yo!Kart V10. We’re all ears.

Last Updated: June 16, 2023

Historically, the transformation driven by Web 2.0 laid the foundation for the flourishing of the eCommerce industry, propelling retail giants such as Amazon, Alibaba, and others to revolutionize the retail landscape.

However, over time, challenges arising from the centralization of power have surfaced, resulting in the increasing dominance of more prominent players in the space. This challenge has made it difficult for new entrants to compete fairly with established industry leaders.

As technology continues to advance and evolve, it offers alternative approaches to achieve desired objectives, enhancing current processes and offering solutions to challenges within them.

Web 3.0 is that cumulative shift in the web that contemporary technologies promise to bring. It is the potential solution to challenges within eCommerce. The Ethereum blockchain-driven underpinnings in Web 3.0 propose to create an open web for all users – and in the process level the playing field in the eCommerce industry, providing equal opportunity to startups to compete with more prominent players in the ecosystem – catalyzing the next big transformation.

In this blog let’s first understand what Web 3.0 is, and which technologies are driving the change. Based on that, read how Web 3.0 eCommerce technologies can bring about the necessitated shift in the eCommerce ecosystem – opening up fascinating opportunities for startups, and existing businesses, while also promising better shopping experiences for consumers.

Table of Contents

• Web 1.0 to Web 3.0 – The Evolution
• Key Technologies Driving Web 3.0 Change
• Key Features of Web 3.0
• Web 3.0 and eCommerce
• Challenges for Web 3.0 Implementation at Present
• To Sum it Up
• FAQ

Web 1.0 to Web 3.0 – The Evolution

Change is a gradual process, individual microcosms within an ecosystem keep changing and evolving. But these changes, at times,  mature to collectively bring about seismic shifts,  fueling major shifts in the entire ecosystem. 

For instance, human history is segregated into phases of Ancient, Medieval, and modern eras. While humans have gradually kept on progressing and evolving, this segregation is based on significant moments in the continuous development of mankind – for example, the Renaissance that propelled human civilization towards greater progress – marks the transition from the medieval period to the modern era.

Likewise, the segregation of the web into 3 phases (and beyond) signifies crucial technological development that has led and will lead to enhanced capabilities in the entire ecosystem – resulting in transformative user experiences and enhanced business opportunities.

Let’s track the development phases and understand the transition from web 1.0 to web 3.0.

Web 1.0 – The Start

It was the earliest version of the web – wherein publishers developed static web pages with limited interactive elements. The content was primarily text-based and uni-directional. The end-users could only “read” what was already published. In fact, it is referred to as the read-only web.

Documents could only be sent over the internet. The static web pages did support images and gif files.

Also, HTML 3.2 elements were evident in the form of tables, frames, and others. The forms were sent via email. The content was saved over the server’s filesystem, and not over a DBMS (database management system).

Web 2.0 – Greater Possibilities

This version of the web is currently in use. At least, the majority of the web over the internet falls under Web 2.0. Here, the number of publishers has grown exponentially. User interactivity is encouraged. UGS or user-generated content is part of the content on offer.

Interactivity has been further enhanced by the range of content or media that can be shared or consumed over the internet.

In fact, websites like Facebook and Youtube are built around UGS. Moreover, eCommerce websites like eBay allow users to transact, and information storehouses like Wikipedia have facilitated information transfer.

Web 3.0 – The Shift

The third major paradigm shift in the web is being driven by blockchain and other key technologies. (explained in the following section). It promises to truly personalize the web experience for the users. Added context to user personas, made possible with blockchains, will lead to personalized browsing experiences, with higher security.

The same benefit will be extended to web publishers, businesses, eCommerce websites, and others. They will have more effective tools to reach the target audiences.

Let’s delve into this a little further to understand how Web 3.0 eCommerce will transform experiences.

Key Technologies Driving Web 3.0 Change

“Over the next 2 to 5 years, the convergence of 5G, artificial intelligence, augmented reality and virtual reality, and a trillion-sensor economy will enable us to both map our physical world into virtual space and superimpose a digital data layer onto our physical environments.” Peter Diamandis – entrepreneur, visionary, physicist, and the CEO of Zero Gravity.

The script of science fiction a few years ago, our reality is transforming with lines between the physical and virtual worlds blurring. Let’s first take a look into the technologies driving this change

Impact of Distributed Ledger Technology (DLT)

At the core of web 3.0 transformation is distributor ledger technology. For eg. blockchain.

A blockchain is a data ledger that is unchangeable. The ledger can store data related to transactions and other such information. Once the data is stored it cannot be changed. The blockchain then can be shared across systems. Significantly, blockchains are not centralized. They are exclusive to the systems that share them.

Thus, Web apps developed with blockchain technology will be governed, maintained, and even added onto by nodes. The data of these apps are distributed in multiple locations simultaneously, without a single controlling authority, making the apps inherently decentralized.

Additionally, according to IBM, distributed ledger technology is inherently secure and not prone to hacking.

At the moment blockchains are used to record transactions, and they are further associated with tangible or digital assets.

The technology will further allow peer-to-peer information exchange. These can be end-users, corporations, or machines.

Critically, there will be no need for middlemen that manage and own the information. And this solves the current problem of centralization.

With Web 2.0, the biggest pain point has been the ownership of user data by companies such as Facebook, Amazon, and others.

Leveraging blockchain technology, Web 3.0 can potentially disrupt the current digital landscape with decentralization resulting in far-reaching implications, and will lead the way for a more open-connected web.

Artificial Intelligence (AI) and Machine Learning (ML)

Both these technologies enhance the computational capabilities to understand and evaluate unstructured data. Furthermore, AI can self-program, continuously add to its information base, and implement decisions based on the context of the situation.

The objective ― or the direction of the evolution of AI and ML is to make the web semantic, as visualized by Tim Berners-Lee (An English computer scientist and founder of web 2.0). In other words, to foster a scenario wherein users and machines will work together – cohesively.

Faster Network

More capabilities also mean higher data transfer. With data moving to the cloud for faster and more secure computing needs, the data transfer needs to facilitate the data transfer requirements.

Faster connectivity from technologies such as 5G, continuous progression of WiFi technology, and other developments in this regard holds promise to fuel the necessitated support.

Augmented Reality (AR) and IoT

AR and IoT wearables have been changing the way users interact with content. With the continued progression of their technologies, the following outcomes will have a significant bearing on Web 3.0. They promise the following outcomes contributing to the Web 3.0 promise.

Increased Interactivity

Web 1.0 solely relied on desktop monitors. Web 2.0 added mobile screens to the mix. Web 3.0 will see an increased role of AR devices, wearables, and IoT.

Consumers will be able to interact with the content more intuitively. From just clicking on desktops to touch-sensitive devices to the interconnectivity of IoT, Web 3.0 opens up opportunities for users to interact with AR devices such as AR glasses, IoT wearables, and more.

More Input Data Collection Sources

Data input points are continuing to grow as well. In addition to text inputs: gestures, voice, and others have added to the ways users interact with machines. For instance, users have also started to use IoT wearables like smartwatches that constantly monitor biometric data. That is an additional stream of data that users are providing via these devices.

Similarly, IoT devices such as household appliances, monitors tracking infants, smartwatches tracking health biometrics, and other appliances with sensors generating input data ― are increasing.

In the B2B space, the scope of IoT devices is increasing even further. IoT devices with sensors are being increasingly adopted in manufacturing, automotive, healthcare, and other sectors.

According to Statista, there were about 9.7 billion Internet of Things (IoT) devices worldwide in 2020. This number is forecasted to almost triple to 29 billion IoT devices by 2030.

Henceforth, the devices generating input data for the web is stated to increase significantly in Web 3.0.

Key Features of Web 3.0

Summing up the impact of the evolution of technologies ― the following key features of web 3.0 can be anticipated:

Decentralization

With an increased amount of user data generated, digital trust will be a key component that promises to encourage participation in the web, both for users and businesses. Decentralization is a critical component of web 3.0.

Omnipresent

An increased number of devices connected to the net means that the web is moving beyond desktops, and mobiles and transcending onto devices that are in use ― home appliances, automobiles, healthcare equipment, and others.

Semantic

As Tim Berners-Lee envisions it “The Semantic Web is not a separate Web but an extension of the current one, in which information is given well-defined meaning, better-enabling computers and people to work in cooperation.”

In other words, enhanced capabilities of the machines to better understand the data, and process it in a way humans do, leveraging the evolving technologies of AI/Ml ― will be the hallmark of Web 3.0.

Boundless

The popular game “Pokemon Go” gave the world a glimpse of how the digital space is evading boundaries and transcending the physical world. Web 3.0 entails greater possibilities with the blurring of boundaries in the physical and virtual world.

Web 3.0 and eCommerce

In the past decade, eCommerce has exploded onto the scene, especially in the post-pandemic scenario.

But, in the broader perspective, this was just the start. With the continued progression of technologies on all fronts or web 3.0 as we are calling it, eCommerce can potentially witness transformative, multi-faceted changes.

Web 3.0 eCommerce (R)evolution – From the Consumer’s Perspective

In the Web 3.0 context, the implications on consumers can be discussed first, because the third phase in internet evolution puts the spotlight on the users. They will start experiencing the web in the following new ways:

Data Ownership

At the moment, bigger eCommerce players like Amazon use a “Collaborative Filtering Engine”. A CFE analyzes consumers’ shopping behavior to predict their future purchases. Accordingly, product recommendations show up on the web pages based on consumers’ own shopping preferences and that of others.

Effectively, this may imply that leveraging mined data coerces impulse shopping. Investopedia believes these suggestions lead to a third of Amazon’s total sales.

Moreover, companies like Amazon have leveraged customer data into refining their business, to a point of introducing their own product range based on this data. While consumers have appreciated these benefits, this has also meant that these companies have gained an unchallenged competitive advantage ― cannibalizing smaller players.

Consumer sentiments toward ownership of data are changing, especially in the post-Snowden era.

A survey posted in NYTimes back in 2015 revealed that 55 percent of the survey respondents disagreed that “it’s O.K. if a store where I shop uses the information it has about me to create a picture of me that improves the services they provide for me.” And 91 percent of respondents disagreed that it was fair for companies to collect information about them without their knowledge in exchange for a discount.

Web 3.0 is set to change that scenario with DLT technology wherein the users will own their data, stored in the blockchain.

Decentralization promises to give consumers ownership of their data including monetization options driving the monopoly away from the big corporations, currently in charge.

The way this is expected to work is:

Consumer data blockchains will be owned by the consumers themselves. These assets will be portable. Similar to luggage in the physical world. Travelers can choose a lodging of their preference, they simply take their luggage to the selected place of stay. Similarly, consumers can choose to use these assets with the eCommerce platform they want to shop on. Once they want to move on to another platform they will be able to move onto that platform along with the assets they own. They plug their assets out of the old platform and plug those assets into the new platform.

Theoretically, they will also be offered monetization opportunities for these assets.

A current example of something similar taking place is the offer by NFT marketplace LooksRare to new users, who are willing to move from OpenSea to their platform.

So effectively, Web 3.0 aims to build an open web, giving the consumers the prerogative, onus, and ownership of their data.

Hyper-Personalization

Web 2.0’s cookie and consumer data-driven personalization lead to tailored suggestions. But they are based on browsing, shopping behavior, and other estimates about the consumer. Moreover, they also put into perspective what online retailers prioritized selling.

As discussed above, with Web 3 eCommerce businesses will have consumer-owned blockchain data about their personas and preferences. The data will provide better insights into the companies.

Additionally, the advanced data-crunching capabilities of AI and ML will lead to better validation of the data.

The result will be a hyper-personalized shopping experience for the consumers that truly puts them into perspective. It will put into context the consumer’s intent behind making the product search and add their preferences into perspective as well to deliver hyper-personalized search results.

Moreover, with the progression of AI and ML ― the evolution of voice assistants like Siri or Alexa into bots that “understand” the user and function as personal assistant bots are on the cards as well.

With these advancements, consumers in Web 3.0 will be able to shop from any eCommerce platform and buy products that fit their needs the best.

For instance, consumers searching for a dress to buy online, will get results based on their preferred size, color, brand, and more. The consumer will further be able to view customer reviews relevant to their preferences.

This benefit will also be extended in the B2B space as well. For instance, a manufacturing plant uses the chemical XYZ in the manufacturing process. The tank with the chemical will have sensors. Whenever the chemical dips below a specified level, automated bots will be able to bid for more stock of the chemical with the right specifications on B2B eCommerce websites and place the order for the same as well.

Intuitive Shopping Experiences

With the extension of the benefits mentioned above, and leveraging the evolving capabilities of AR as well – the buying experience of consumers in web 3.0 eCommerce is set to evolve to open up new opportunities.

AR is at the interactive end of eCommerce, or the front-end. It can blend the virtual world with the real world.

The applications are endless – consumers will be able to buy products by virtually visualizing their look and feel. Products for home decoration, furniture, and others can be analyzed for their size and fitment in the real world.

Ikea Place, Ikea’s AR app is already leveraging the technology to enhance the shopping experience of their customers.

Source: IKEA

In the B2B space as well, AR can help businesses analyze the products better. B2B purchase decisions are data-driven and AR feedback would help procurement teams to analyze the product before committing to the high volume orders.

Overall AR promises to enhance the shopping experience by fostering informed and engaging purchase decisions. Furthermore, the technology reduces return rates for the products.

P2P Interactions

Without a centralized ecosystem, and with the availability of DeFi (Decentralized Finance), consumers can experience P2P eCommerce with a fresh perspective and enhanced capabilities.

The P2P business model will get a boost in the open Web 3.0.

Web 3.0 Evolution in eCommerce from the Businesses’ Perspective

Web 3.0-driven open web ecosystem is set to disrupt eCommerce as we witness it currently. It changes how businesses will approach online retail.

Along with the benefits that extend to consumers, which effectively enhances eCommerce growth, Web 3.0 is likely to extend the following benefits for businesses:

Bigger Opportunities

Web 3.0 is being viewed as a major disrupter in the eCommerce industry for startups and smaller online businesses.

As discussed, in the current scenario, the customer-content driven shopping experience and the trust of security make consumers more likely to shop from the more prominent players in the eCommerce space such as Amazon.

According to Inviqa, 59% of consumers start their online shopping journey from Amazon.

Web 3.0 is expected to level the playing field with DLT-backed consumer-owned data. Moreover, with the shift in onus of data security to the DLT technology, businesses can see eCommerce Web 3.0 being more secure, which will help such businesses in negating the advantage of the more prominent players.

Significantly, eCommerce businesses with well-defined USPs will stand a better chance at winning consumer attention.

Advertising and Marketing

Webpage advertising strategies hold immense value in web 3.0. eCommerce websites will gain enhanced capabilities by leveraging user data coupled with greater computational capabilities of AI and ML to flash consumer-centric and highly relevant advertisements.

Additionally, the marketing strategies of eCommerce businesses will be in a better position to target the customer with contextual marketing content.

Niche Industries Opportunities

With the evolution and increased penetration of interactive technologies such as AR, multiple eCommerce opportunities open up.

B2B, fashion, real estate, travel & tourism, event management marketplaces, and many other niches stand to benefit from wider adoption of AR.

Evolving eCommerce Ecosystem

Beyond websites, eCommerce is equally reliant on supply chains, digital economy, and other supportive factors of the ecosystem that orchestrate online retail.

While we have discussed the impact of Web 3.0 on eCommerce websites in this section.

Web 3.0 technologies will impact eCommerce operations as well by streamlining them.

For instance, companies like Modum leverage blockchain to digitize supply chains and provide transparent and traceable logistics of sensitive goods. They enabled Swiss Post, the national post service of Switzerland, to offer temperature-controlled, last-mile delivery.

Once these technologies gain traction, the benefits will be extended to the eCommerce industry in the long run.

Challenges for Web 3.0 Implementation at Present

Web 3.0 holds immense potential for eCommerce and in bringing about the evolution of web-driven experiences and business models. But like any new technology, there are a few challenges that will need to be addressed before it is extensively adopted.

Accessibility

Retrospectively, eCommerce gained traction with the availability of multiple devices like mobile phones, tablets, and others alongside desktop computers. These devices offered portability and convenience and made eCommerce more accessible ― augmenting its popularity. Furthermore, the industry gained traction in significant markets such as South East Asia, post the availability of low-cost mobile phones in these regions.

Accessibility is one of the major contributors to the popularization of technology.

Web 3.0 will have to cross this hurdle and be accessible and convenient to the masses in the way that web 2.0 has been over the past few years.

The current devices do not have the requisite infrastructure in the form of necessary sensors, browsers that support the technologies, and others.

Until the time the technology is not made available to the masses on low-cost readily available hardware, the popularity of eCommerce web 3.0 will be slow progress.

Costs of Implementation for Startups

Given the current scenario of the aforementioned technologies, development costs are higher. Higher development and maintenance costs impact the long-term viability of the project.

In contrast, web 2.0-driven eCommerce websites can be conveniently set up with quality turnkey solutions with minimized time to market and are less resource-intensive.

There is still time when Web 3.0 can reach this level of maturity.

Speed and Scalability

Due to the involvement of multiple nodes in the process, progress can be slow. Especially, in the case of transactions. eCommerce transactions can scale voluminously. The current status of DLT technology requires further development to offer performance with scalability.

Validation of Consumer Data

Although AI is being developed to evaluate unstructured data, it will have to evolve even further to be able to validate unscrupulous and misleading data.

Regulations Control & Ethics

According to Jack Dorsey, Founder of Twitter “You don’t own web3. The VCs and their LPs (limited partners) do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into.”

You don’t own “web3.”

The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label.

Know what you’re getting into…

— jack (@jack) December 21, 2021

While, on an interview at TechCrunch, Bill Gates, co-founder of Microsoft says about NFTs and cryptocurrency “100% based on greater fool theory,”

It is still unclear how a decentralized network will be regulated.

Moreover, extensive use of technologies such as AR and VR also poses ethical questions. For instance, how will these impact users in the long term? With technologies that blur the line between the physical and the virtual world, will the users stop relating to the former?

While the challenges pose valid questions regarding the extensive implementation of Web 3.0, the answers to these will be more clear with time.

To Sum it Up

The origin of the word Renaissance is from the Italian word Renascita meaning rebirth.

Is Web 3.0 the technological renaissance for eCommerce?

Just like in human history, it will be difficult to point out one fixed date when the web turned to the 3.0 version. Instead, it is an ongoing transition that necessitates the development of technology on multiple levels.

Even, as of now, all these technologies have found application on the web ― but not to the scale as envisioned in web 3.0.

If these are developed to point that they offer an ecosystem as mentioned in this article, and find a way around the challenges and complexities ― they have the potential to disrupt the Web experience, inclusive of eCommerce, and gradually replace Web2.0 with the new version.

Although, there is still time for that to happen…

But, by judging the current trends in the industry, it can be safe to assume that the technology is well on its path to providing a paradigm shift in experiences for consumers and opportunities for technology providers and businesses alike.

And until the time when Web 3.0 is extensively applicable, practically viable, and can be commercially implemented ― startups can identify existing opportunities or take inspiration from unique marketplaces and start with their eCommerce business in the current scenario with existing technologies.

Capture existing eCommerce opportunities with robust technologies of the current times that let you reach a wide audience, enhancing the scope and appeal of the eCommerce business. Power your online business with niche-specific turnkey eCommerce marketplace software or reach us to consult experts to bring your business idea to life

FAQ

• What is Web 3.0?

Ans: It is the cumulative shift that multiple technologies promise to bring to the Web. As envisioned by Tim Berners Lee, the “semantic web” as he called it, is anticipated to be brought on by these technologies. It is expected that the web will be truly free, and the machines will be able to “understand” just like humans. 

• Which are the Web 3.0 Technologies? 

Ans: This can be understood as the main technologies that will aid in better capabilities to extract, compute, and experience data, Moreover, some technologies will further support the transformative shift. 

• Higher number of sensors and IoT devices for more data 
• AI (Artificial Intelligence) and ML (Machine Learning) for better computation of data. 
• AR (Augmented Reality) and VR (Virtual Reality) to better experience the computed data. 
• DLT (Distributed Ledger Technology) like Blockchain to better store data. 
• Faster internet networks like 5G allow more data to be transferred per second, leading to better experiences. 

Additionally, better infrastructure and the evolution of devices will further aid in the users benefitting more from the advantages offered by these technologies. 

• Is Web 3.0 eCommerce going to be any different for buyers? 

Ans: Yes, Web 3 eCommerce is going to change the dynamics of the industry. 

• With more data extraction touch points, they will be able to interact with the system much more emphatically. 
• Better computation means that the data will be analyzed with more “human-like” results. 
• AR, VR will allow consumers to make purchase decisions with a better analysis of the product.
• Blockchain will help them to own their data and leverage it to their advantage and as per their preference. 

To sum up, the buyers will find eCommerce interactions more engaging, personalized, and even more automated. 

• Will Web 3.0 eCommerce give more opportunities to businesses? 

Ans: Yes, with Web 3.0 eCommerce, existing major players will get more tools to engage buyers – attract them to buy more with interactive shopping experiences, leverage big-ticket products, and more – adding newer transactions to their existing system. 

Smaller businesses, on the other hand, would be able to compete with the larger players with access to user data to offer more personalized shopping experience to the buyers, just like major players do. Furthermore, data will also help them to shape their business around buyer needs more effectively. 

Moreover, Web 3.0 eCommerce is also going to augment operations and supply chain activities, benefitting all involved in the entire eCommerce ecosystem. 

 Last Updated: 23rd January, 2024

According to Vivino’s proprietary research, 93% of the people need help while purchasing wine. Heini Zachariassen, CEO and founder of Vivino-a San Francisco-based company, realized this problem in 2010. Casual wine drinkers felt overwhelmed with the options of wine available in the market and relied on the advice of seasoned wine connoisseurs to tackle this challenge to make selection easier.

Seeing the growing trend and popularity of mobile apps like Yelp and TripAdvisor, it made a lot of sense for Heini to have a similar platform for wines as well. That’s when Vivino was launched, to turn a smartphone into a perfect partner in wine. The idea was to fill the gaps in people’s knowledge and accessibility of wine. 

By simply scanning a wine label, users could get information such as the price, where they can buy the wine, and see how other wine drinkers have rated it. Soon, Vivino revolutionized how people purchased wine across the globe. However, Heini had still higher hopes to go beyond being a mere source of recommendation to evolving Vivino into a full-fledged online wine marketplace.

Table of Contents

• Growth Dynamics of Vivino Marketplace
• Vivino at a Glance
• In a Nutshell: Vivino Business Model Explained
• How Does Vivino Make Money?
• Payment Methods Supported By Vivino
• Geographic Extension Blueprints
• Customer TouchPoints Making Vivino Stand Out
• Vivino’s Attempt to Capitalize on Customer Behaviors and Opportunities
• How to Launch a Wine Marketplace like Vivino
• Final Thoughts
• Frequently Asked Questions

Growth Dynamics of Vivino Marketplace

Vivino burst onto the scene with the aim of becoming the world’s largest wine community. It relied on crowd-sourced data to personalize wine recommendations so people would feel more confident as they made their wine selections. The crowdsourced ratings actually offered a competitive advantage over individual wine experts and helped to scale the company.

However, as their popularity grew, so did their competition. As other similar services began to emerge in the market, Vivino needed to stay ahead of the curve. And, this was the time in 2017 when Vivino was launched as an online wine marketplace, which Heini had in mind since its inception.

Today, it has an ever-growing community of 50 million wine enthusiasts, who turn to the platform for its personalized recommendations, transparent rating system, and expansive selection of wines from more than 700 marketplace partners worldwide. The app is available in 15 different languages to cater to a global audience

Vivino currently has 12.5 million wines listed on its database, which is constantly increasing. As a testament to Vivino’s impact on the wine industry, it was named the 2021 Retailer/Marketplace of the Year by the Wine Enthusiast Magazine. 

Vivino at a Glance

Vivino is a well-renowned wine marketplace where both vendors and buyers can avail of its services. It has achieved remarkable growth since its inception and the numbers given below reflect its success. 

• The app has 425 million labels scanned to date
• Estimated funding of $221 million is raised
• Vivino has 72 million reputable ratings
• The marketplace app has reached a customer base of 50 million since its inception
• Vivino has an annual revenue of $67 million

 Last Updated: July 05, 2024

Digital commerce is continually growing, making businesses look for unique and enticing ways to meet changing customer needs and generate constant revenue. The pivotal driver of this trend i.e. eCommerce marketplaces continues to grow in popularity. A report by Digital Commerce 360 shows that the revenue of online marketplaces is projected to grow by $27.1 trillion by the year 2027. There are many examples of successful eCommerce marketplaces like Amazon, eBay, Etsy, and others that have proven the potential of such a business model. Hence if you build a B2C marketplace now, you can cash in on this growth trajectory.

In this blog, we’ll guide you on how to create an eCommerce marketplace that can become a flourishing business with time.

Table of Contents:

• What is an eCommerce Marketplace?
• Why Build an eCommerce Marketplace?
  – Ease of Set Up
  – Low Operational Cost
• Steps to Build an eCommerce Marketplace
  – Execute a Through Research
  – Choose the Right eCommerce Business Model
  – Decide on Ideal Revenue Streams
  – Choose the eCommerce Marketplace Development Approach
• Solutions Provided by FATbit Technologies
• Final Thoughts

What is an eCommerce Marketplace?

The eCommerce marketplace is a platform that facilitates the buying and selling of goods while providing something for everyone. Multiple sellers can collectively showcase their product catalog and buyers can shop from a wide range of goods choices. These goods can be anything from clothing and footwear to digital downloads and more. A few successful online marketplaces are Amazon, eBay, and Walmart.

Why Build an eCommerce Marketplace?

Let’s Explore! Why should entrepreneurs spend their resources creating a marketplace?

1. Ease of Set Up

The significant benefit of building an eCommerce marketplace is that owners don’t need to invest heavily in stock acquisition and its management because it is all held by the sellers. 

The main focus is to customize the marketplace according to the customer demands and improve their overall shopping experience.

2. Low Operational Cost 

Another benefit of eCommerce marketplace development is that you don’t have to establish a physical store for the sale of goods. An eCommerce marketplace can help you with this. For instance, if you build B2C marketplace, the customers can use the website, and there will be no need for a brick and mortar storefront.

Additionally, managing inventory is not something you have to spend time and money on when developing a multi-vendor marketplace. The sellers on the marketplace are responsible for all of these duties. 

In this way, the admin(s) can devote their efforts to starting and promoting the business on social media and other digital channels. Also, the need for additional resources is gradually reduced, which further lowers the management and operational costs.

Steps to Build an eCommerce Marketplace

Here are some vital steps to keep in mind before building a successful eCommerce marketplace.

Execute a Through Research

There are some more methods that help you to build a successful marketplace business.

Competitor Analysis

Doing some research on the top-rated competitors of your industry can help you in so many ways. You can get many ideas by exploring their products, history, as well as their business models. Learn what people are looking for in your niche and try to deliver it in your unique style.

Choose Your Niche

Finding the right niche is important before building a successful e-commerce marketplace. Start by doing market research once you’ve decided what kind of business you’ll be running.

As the eCommerce industry has experienced such rapid growth, it’s also important to have as many ideas as you can before starting a business in this competitive world. To do this, entrepreneurs should find a specific niche where they can focus their business strategy on a well-defined audience. 

Assess Your Target Audience

Having an in-depth knowledge of the target market is essential to build eCommerce marketplace. Gather insights like customer demographics, buying behavior, age, occupation, and so on. All this will further help implement the next steps like marketing and more in the right direction, meeting the customer needs. 

An eCommerce marketplace is more successful when it focuses on a specific niche because it gives buyers a personalized experience and offerings that resonate exactly with their requirements. For instance, if you build a B2C marketplace, your considerations will revolve more around creating an experience around your brand unlike a marketplace for B2B audiences.

Pick a Name for Your Business

One of the most difficult aspects of starting an eCommerce business is naming your store. You’ll need to think of something that stands out accurately, defines your brand, and hasn’t been used by someone else. The theme of your business will be set right away by a smart business name.

Keep these points in mind when it comes to naming your business

• Try to keep it simple
• Differentiate yourself
• Be creative
• Be unique

Choose the Right eCommerce Business Model

When building an eCommerce marketplace, it is evident that it will fall under the below-given categorization. Each of these business models has its advantages and drawbacks. You simply understand the model that would align with your business concept. Let’s discuss.

• Business-to-Consumer (B2C)

The business-to-consumer eCommerce marketplace allows businesses to sell their services or goods directly to end-consumers. The buying journey is short when you build B2C marketplace. The customers clearly know what they want, browse the options, and make the purchase. Amazon and Walmart are some great examples of B2C eCommerce marketplaces.

• Business-to-Business (B2B)

The business-to-business eCommerce marketplace includes transactions between two businesses in bulk. It can be between a wholesaler and manufacturer, a manufacturer and retailer, and so on. The sales cycle is longer than B2C but benefits from increased and repeated sales. One ideal example of a B2B marketplace is Alibaba.

• Customer-to-Customer (C2C)

The eCommerce marketplace built on a C2C model facilitates the buying and selling of goods from one customer to another customer directly. The customers can upload the items to be sold and other customers can browse the items and choose those they are interested in buying. The best example of a C2C marketplaces is Etsy. 

Decide on Ideal Revenue Streams

eCommerce marketplaces open the door to numerous business opportunities as there are multiple monetization strategies to leverage. A few of them include:

• Subscription: Nowadays, subscriptions have become one of the most popular business models in terms of generating revenue. It is the amount that the seller pays on a regular basis. You need to make sure that your supplier receives greater value from your marketplace than it costs to be the subscriber in this business.
  
• Commission: You charge sellers a certain percentage of every transaction that takes place on their platform. In this way, you allow them to use your marketplace and in return, you’ll earn a commission on every sale.

Choose the eCommerce Marketplace Development Approach

For creating a multi-vendor marketplace, there are two effective approaches: whether you can get the marketplace custom-built or leverage a readymade eCommerce software. Let’s discuss these!

• Custom-Built Marketplace

This approach involves eCommerce marketplace development from scratch, giving you complete control over the design, features & functionalities, and other aspects. Besides, you may need the assistance of expert developers or coding experts to build your marketplace from the ground up. 

• Leverage Readymade Software

Entrepreneurs can also take advantage of readymade eCommerce software which is easy to set up, affordable, and equipped with essential features. Furthermore, it reduces the product’s time-to-market and saves the time and resources involved in building it from scratch.

Solutions Provided by FATbit Technologies

FATbit is a software development company that developed expertise in understanding eCommerce success through the use of Agile methods not only in product knowledge but also in the creation and enhancement of reliable software for customers.

FATbit can assist you in building your website with their affordable inclusive eCommerce solutions. For instance, to build B2C marketplace, the company offers their readymade solution – YoKart. Having powered 5000+ eCommerce marketplaces, YoKart allows businesses of all sizes to get started with a modern marketplace right off the bat.  Additionally, the firm provides customized services and post-purchase technical support. FATbit’s professionals are specialized in creating customized eCommerce stores that are specially designed according to your needs. All the products are created with cutting-edge technologies and are feature-rich.

All the pre-packaged software solutions offered by FATbit are ready-to-implement, highly adaptable, customer-centric solutions to speed up the time to value for all kinds of businesses.
The software solutions offered by FATbit Technologies include Yo!Kart, Yo!Kart B2B and more.

Final Thoughts

We have provided you with general steps on how to build a successful eCommerce marketplace. Creating a marketplace is a difficult yet manageable process that might take a lot of time. Careful research related to the niche, a trading platform plan, and a perfect revenue plan are very important before starting the eCommerce marketplace development. Besides, choosing a trustworthy team is one of the crucial aspects. If you want consultation regarding eCommerce marketplace development, feel free to contact FATbit Technologies.