As e-commerce is becoming the new norm, multivendor marketplaces are also becoming extremely popular. However, establishing a marketplace comes with its own set of problems. One of the most difficult things you will have to do when starting your marketplace is finding vendors.
Having trouble finding and connecting with vendors is one of the main reasons why many marketplaces fail at the beginning. However, with our years of expertise assisting other multivendor marketplaces in scaling their businesses, we understand how you can entice merchants to your site.
This article will show you the best ways to locate and successfully onboard vendors into your marketplace. Let’s get started!
Why Are Vendors the Most Important Component of a Multivendor Marketplace?
Long story short, more quality vendors equals more customers. Period.
Having more vendors means that you can offer more products to your buyers. They’ll have options to choose from and get different rates and qualities for the same product. This is something that is very hard to achieve for a single vendor e-commerce site.
How To Find Vendors for Your Multivendor Marketplace
Vendors are reluctant to join new marketplaces because they don’t want to risk selling on an unknown platform. The key to overcoming that is building trust with potential vendors. You can build trust by assuring them that you will provide a good number of customers and help them grow their business.
Here are a few ways to find vendors for your marketplace:
Create an Online Presence for Your Marketplace
Thanks to our vast technology, there’s no excuse for not having an online presence. In 2022, there is rarely a single business that isn’t using the internet to market its services.
So, where do you begin?
Use Social Media To Promote Your Business
Promoting on social media is the first thing you need to do. Social media allows you to reach out to a large number of people in a short amount of time. You can use platforms like Facebook, Twitter, and Instagram to create awareness about your marketplace.
Rather than stressing over where to locate vendors, go where they already are!
Promote Using Ads
Online advertising is another great way to reach out to potential vendors. You can use platforms like Google Ads and Facebook Ads to target people interested in selling their products online. You can ensure the people you’re reaching out to are actually potential vendors by targeting relevant keywords like “online selling” and “e-commerce business.”
Use Vendor Directory Sites
Another good way to find potential vendors is by using vendor directory sites. These websites list businesses looking for new opportunities to sell their products. Some of the most popular vendor directory sites include Alibaba, EC21, and TradeKey.
There’s Still Power in Offline Presence
Just because the internet is taking over doesn’t mean offline promotion methods are completely useless. There are several ways to promote your marketplace offline, including print ads, flyers, and even word-of-mouth.
One of the best ways to promote your marketplace offline is by exhibiting at trade shows. It is a great way to reach out to potential vendors as you will be able to meet them in person, pitch your marketplace idea to them, and utilize your small business phone system to follow up with them later.
Reach Out to Vendors From Merchant Organizations
Several merchant organizations list businesses looking for new selling opportunities. Some of the most popular merchant organizations include the National Retail Federation and the Retail Industry Leaders Association.
Why Should Vendors Use Your Multivendor Marketplace?
The fact is, there are many marketplaces available for vendors to sell their products on. So why should they use your marketplace? You need to be able to answer this question if you want to convince vendors to sell their products on your platform.
Do Your Research and Know Your Competitors
Before convincing vendors to use your marketplace, you need to know what your competitors offer. This way, you can highlight the unique features of your marketplace and show vendors why your platform is the better option.
Some things you should look into during competitor research include their commission fees, the type of products sold on their marketplace, and the number of vendors they have on their platform. You can use this information to negotiate a better deal for the vendors.
Make Onboarding Simple
Yes, it does matter. Many of your suppliers will refuse to join a new marketplace unless it’s simple for them to do so. Make the onboarding process seamless, as your vendors shouldn’t have to jump through hoops. Offer a simple membership registration, product listing, order management, and other processes to make their lives easier.
Create a Smooth User Experience for Your Website
Your vendors already have enough to deal with, from running their business to managing profit and loss data, etc. Your marketplace shouldn’t add to that list of to-dos.
Creating a quick, feature-rich, and user-friendly website will entice vendors and customers to use your platform and, more importantly, stay there. Design your website in a way that is easy for people to navigate and use. All the features and tools that they need should be easily accessible too.
Make Payments a Breeze
For vendors, payment is one of the most important aspects of any marketplace. Vendors need to be able to receive payments quickly and easily without any hassle. Make sure that you have a secure and reliable payment system in place. You can use a third-party payment processor like PayPal Commerce Platform or Stripe Connect.
To take things a step further, you can also offer crypto payments to vendors who want to use them. This will show that you are keeping up with the latest trends and technologies and allow customers to make crypto payments. Just make sure you have a crypto wallet so you can securely receive and store any crypto payments you receive.
The advice given in this article is a huge reason why companies like Amazon, eBay, and Etsy have become so successful. You need to offer a platform that is easy to use, has a smooth user experience, and provides a great way for vendors to receive payments.
If you want to create a successful marketplace of your own, you need to find the right vendors and give them solid reasons to use your platform to do business.
If you can do all this, you will be well on your way to creating a successful multivendor marketplace!
About the author:
Sam Bocetta is a cyber-authority with over 25 years of experience and a comprehensive understanding of fraud, identity theft, and privacy issues that plague millions of victims worldwide. However, during his retirement days, he mastered his online business and marketing skills by keeping an eye on both present and future trends. Sam has written for GlobalSign, AT&T, DevOps, FEE and CSO among others.