Multivendor eCommerce Marketplace Industry Report – A Go-To Guide
From USD 4.2 trillion in 2020 to $5 trillion in sales in 2021, the eCommerce industry has been enjoying extraordinary growth recently. It has driven many aspiring business entrepreneurs to open and launch their products in their own stores. If you are eager to build an eCommerce marketplace like Amazon and Etsy, here is a detailed guide on ins and outs of the multivendor eCommerce marketplace industry before you launch your eCommerce industry app.
eCommerce Marketplace Market Statistics and Overview
- In 2021, as per Statista the estimated global retail eCommerce sales were USD 4.9 trillion. In addition, it also expects sales to grow further to USD 7.4 trillion by 2025.
- From USD 46 billion in 2020, the Indian eCommerce market is expected to reach USD 111.4 billion in 2025.
- With over USD 2 trillion mark in total online sales in 2021, China is the leading global eCommerce market. This monumental feat accounts for over 52% of all eCommerce sales worldwide.
- As per a survey from eMarketers, China made USD 351.65 billion in revenue from retail eCommerce sales via social media platforms.
- Now, let’s take the example of a multivendor eCommerce platform like Amazon and Etsy.
- Amazon generated $470 billion in revenue, making it the third largest company in the world by revenue.
- With a 37.6% increase in revenue in 2020, Amazon is the third largest public company by revenue in the world, behind Walmart and China’s State Grid.
Business of Apps
- From USD 172 billion in 2015 to $1.6 trillion in 2022, Amazon witnessed exponential growth in valuation.
- Famous for its handmade vintage items and crafting supplies, Etsy processed a USD 10.28 billion in gross sales in 2020, which is a 106.84% increase from 2019.
- In the same year, it made USD 1.72 billion in revenues making it the 4th fastest growing eCommerce platform behind Apple, Chewy, and Amazon.
5 Popular Multivendor eCommerce Marketplaces
Key Factors for Growth in the Multivendor eCommerce Sector
Affordable Internet Services boosting Mobile Shopping
- Low internet charges are leading to eCommerce expansion and increased usage of smartphones and tablets globally.
- As a result, from USD148 billion in 2018, smartphone retail eCommerce sales are expected to cross USD 432 billion in 2022.
Increased Usage of Cashless Transactions
- At USD 708.5, global cashless transactions increased by 14% in 2018-2019.
- The increase in eCommerce growth and the acceptance of alternative payment methods will further boost non-cash payments to 1.1 trillion by 2023.
Growing Investments in Logistics and Warehouses
- The warehouse and logistics industry is expected to get an estimated investment of USD 2 billion. And so, a subsequent increase in online retailers’ reach to deliver products in remote locations.
- The onset of Covid-19 accelerated the global shift to online buying by five years.
- With the world coming to a halt and all shops closed, people’s inclination toward online buying was natural.
Buy Now, Pay Later
- The rise of BNPL and similar payment options are crucial factors in why consumers are willing to adopt new shopping and payment methods.
Benefits of Multivendor eCommerce marketplace
Get access to sell a wide range of products and services.
A multitude of vendors represents Amazon. It’s one of the crucial factors for the successful run of this eCommerce marketplace giant.
A multivendor store assigns necessary tasks like logistics, product upgrades, pricing, and inventories to its respective vendor.
Diversified Monetization Model
Here are some go-to ways you can money off multivendor eCommerce.
-> Sign-up Fees
-> Commission on Each Purchase
-> Product Listing Fees
-> Subscription/Membership Fee
- Lower inventory investment cost makes it easier to scale
In a marketplace model like Amazon, warehouse operation costs and human resource management is looked after by respective vendors.
Why you should have a Multivendor eCommerce App?
At USD 3.56 billion, mobile applications accounts for almost half of the total eCommerce sales in 2021.
Business of Apps
- With 150 million prime subscribers and a 40% market share, Amazon is way ahead of its competitors in the US eCommerce market.
Business of Apps
- Mobile eCommerce was responsible for 53% of worldwide eCommerce sales. It accounted for 7.3% of collective retail sales in the US.
The above statistics are evidence of massive growth in the eCommerce marketplace in the upcoming years. If you are interested to start a multivendor eCommerce business like Amazon, now is a great time!
Interested in having your multivendor eCommerce App?
Code Brew is at your service!
Our expert development team has built over 10,000 apps for various industries like social media, on-demand ride-sharing, online food delivery, eCommerce, online education, healthcare, and a lot more.
Here’s an advanced tech stack that offers unique multivendor eCommerce services.
Feature-Rich eCommerce Websites
Get feature-loaded marketplace websites for product selling, space renting, product renting, peer-to-peer online platform, freelancing services, and eCommerce
Intuitive Mobile Apps
Highly functional and simple-to-use iOS & Android mobile apps for your online marketplace.
Easy-to-operate merchant panel for your vendors to track order requests, order details, transactions, tracking, and more.
All-in-one powerful & simple-to-learn admin dashboard to track and manage your orders, vendors, and customers.
Looking to build an advanced-feature-loaded multivendor eCommerce Marketplace App? Contact Code Brew today to get a free demo!
August 31, 2022
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