Single vendor or Multi-vendor?- a question for e-commerce vendors!

A question for e-commerce vendors- Single vendor or Multi-vendor?

In recent years the number of online sellers increased drastically because Facebook made it easier for both sellers and buyers to find each other. However, this increased number of vendors meant increased competition.

That is why sellers who want to survive in the market are creating their own marketplace, their Ecommerce website. While doing so these sellers are facing a question, “Should I make a Single vendor or Multi-vendor e-commerce website?”

Well, we cannot give you the answer to that question but we can make it easier for you to decide. It’s best to start with finding out the characteristics of these two websites.  

So here we go:

Single or Multi-Vendor e-commerce website:

When we are trying to know about something, the first question that comes to our mind is “What’s it”. So, in this case, the questions are 

  1. What is a Single vendor e-commerce website?


  1. What is a Multi-vendor e-commerce website?

So let us first know that,

What is Single vendor e-commerce website?:

On a basic term, it’s a website or marketplace where a single merchant/seller sells only his/her products to the buyers. 

That means a single seller uses this website to sell the products that are available to him. He may have products of different variations but they are limited. So the buyers do not have the ability to choose from different options.

What is Multi-vendor e-commerce website?:

As we have already told you what a single vendor e-commerce website is you may have already figured out what multi-vendor means in this case. Yes, a multi-vendor e-commerce website means where several vendors/ sellers sell their products simultaneously. In this case, these sellers sell their product on a website owned by an admin, the admin can be a seller as well. As there are several sellers, buyers do get to choose from different options before buying their selected product.

Advantages & some Disadvantages:

Ok, now we know what these two e-commerce site is all about. So now we should get to know what are the advantages of selecting either of them and what disadvantages they do have. First, let us talk about the advantages.

Advantages of Single vendor e-commerce website:

  1. It is much easier to manage a single vendor website than a multi-vendor site.
  2. As a single seller, the quality of the products and their pricing can be controlled.
  3. The seller can use this website to serve a small market with customized and good quality products.
  4. The seller can easily build a good relationship with the buyers.

Advantages of Multi-vendor e-commerce website:

  1. Multiple vendors mean more options for buyers. They will be able to buy their selected products from the seller of their choice.
  2. Chances of running out of supply decrease a lot as there are more supply sources.
  3. It enables the sellers to serve a bigger market.
  4. It becomes easier to introduce different categories of products which lets the seller to meet new demands of the buyers.

Now let’s talk about their disadvantages,

Disadvantages of Single vendor e-commerce website:

  1. As there is only one seller buyers do not get any option to choose from in buying their products
  2. It becomes harder to meet all the demands of the buyers
  3. As product category is limited the volume of traffic the seller gets is smaller than a Multi-vendor website. 

Disadvantages of Multi-vendor e-commerce website:

  1. Managing a multi-vendor website is more complicated as each of the sellers have their own business rules and values. So bringing them under one roof is hard.
  2. On a single vendor website, you can easily control the pricing of the products but on a multi-vendor website, the seller may have different pricing policies so you cannot always control the pricing.
  3. As there are more sellers, maintaining the quality of the goods becomes harder.

So, now you know all that needs to be known about these two e-commerce websites. But if you are still confused or it’s hard for you to decide, do let us know. We will gladly help you decide. On the other hand, if you have decided to get one of these two for yourself we can make one for you.

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