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A multivendor marketplace is an online business stage that enables multiple vendors to sell their items from one storefront. Multivendor store gives customers a tremendous index to browse and gives venders a greater base of prepared to-purchase clients. 

Consider multivendor stages as shopping centers. A great deal of venders managing in similar arrangement of items under one rooftop. 

The greatest distinction between multi-vendor marketplace and normal online store is that earlier has the specialized capacities to help multiple dealers yet last doesn't. 

Think Amazon and Ebay when you consider multivendor. Believe Forever21's site when you think about a normal online store

Now that we have made the biggest difference between regular online store and multi-vendor marketplace clear, let’s put the spotlight on how multi-seller marketplaces work.

Multi-vendor marketplace business model

Multi-vendor stores have the technical infrastructure to support the listing and sale of thousands of products across a vast range of categories through a huge number of sellers. The multivendor business model is also known as the ‘zero inventory model’ since platform owners mostly don’t hold any product inventory of their own. This is another major reason why the demand for multivendor marketplace platforms is going up.

Here's how multivendor business model works:

·         Vendor registers with multivendor store

·         Vendor has a dashboard to list and manage his product listings

·         Whenever a sale happens, store processes the payment and assists vendor with packaging as well as shipment

·         Store owner keeps a small commission from the product sold and credits the rest to the vendor

·         Store owner focuses on growing his base of vendors to grow product catalog

·         Vendor focuses on growing sales to increase profits.

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