Multivendor Marketplace Development from Scratch Vs. Ready-to-go Solution: Who’s the Winner?

Be it an eCommerce website, mobile app or a multivendor ecommerce marketplace solution, the success of each lies in the way it is developed and when there are options available in developing them, it is natural to face confusion. So, before you scratch your head more, allow us to make it all clear for you.

Online shopping is no more just a trend today. It has become a habit for all. For any product or service, we wish to acquire, the first thing we do is to look online which is why, as per the statistics, the total amount of retail online sales is growing steadily and is likely to reach almost $5 billion by 2021.

But, even in these online businesses, one that is gaining the limelight is a multivendor marketplace website not just due to buyers and sellers but even budding entrepreneurs too. Reason? It is the most convenient medium of shopping and sale of multiple products from one site for customers, because it is capable of generating high profits for sellers, and for owners – it can be efficiently managed. In short, an online e-commerce multi-vendor website is a win-win situation for all.

Now comes the tough part. A multivendor ecommerce marketplace solution may be a great way for a startup or an e-commerce company wanting to explore new opportunities but, it has to be developed such that positive outcomes are guaranteed. Now, you may think how is that possible? Well, there are two main methods of multi-vendor marketplace development – using a readymade e-commerce platform or building a custom solution from scratch. Since both have their pros and cons, we have our experts’ suggestions portrayed here to clear all your confusion in picking up the best.

Scratch Vs. Ready-to-go Solution

Scratch or Custom-made solutions are the ones that are developed according to a client’s specific requirements like marketplace software solution for wholesalers or a marketplace software solution for distributors, while a ready-to-go means Software as a Service (SaaS) which is available to use for a minimum monthly subscription fee or a one-time purchase.

Recommended Blog: Multi-Vendor Marketplace – Benefits and Challenges

Now, let’s see which one is better?

1. Implementation

• The ready-made multi-vendor solution is all like switch on and go. It offers quick implementation and gets your storefront up and running in a short span of time.
• While a custom-built multivendor ecommerce marketplace solution has to be developed from scratch, building the front end as well as the back end as the client desires, hence; its design and development takes time but is worth it.

2. Cost-effectiveness

• When it comes to developing something, the first and the foremost concern that strikes the mind is about the cost. A ready-made multi-vendor solution is indeed less expensive with lower monthly costs compared to a custom-built and some even come for free but with limited features.
• On the other hand, a custom-built multivendor ecommerce marketplace solution does cost more due to months of development & designing it takes to build it from the ground but, the wait and cost both justifies by all means in the end.

3. Compatibility

• It is difficult to find a ready-made multi-vendor solution that is compatible with other software as it comes with either none or limited compatibility.
• While a custom-built multivendor ecommerce marketplace solution is tailored to be integrated with any software you are planning to use.

4. Customization 

• It is not that a ready-made multi-vendor store comes with a stock template, which can only be used as it is. Nowadays, many of them do provide some tweaks that make it easy for entrepreneurs to undertake design changes and even feature upgrades but, to certain limitations.
• With custom development, you have full freedom to set up the marketplace as you like. With its wider customization options, you can build beautiful and perfectly functional e-commerce websites as per your requirement.

5. Functionality

• A ready-made multi-vendor eCommerce solution comes with extremely user-friendly features that the users do not need to have immense technical knowledge for implementation and management. Some of them are even of no use to the store owner.
• On the other hand, a custom-made solution is built with specific and required features and functionalities which you can manage on your own.

6. Support

• A problem can arise anytime with a ready-made solution to tackle which, you can either contact the customer service department or community support of the solution and seek the solution from its tutorials, articles, blogs etc.
• While a custom-built multivendor ecommerce marketplace solution by a marketplace Development Company have their support team always at your service to help you out anytime you need.

7. Scalability 

• As your business grows you may require to scale up your website as well which at a nominal cost can be done in a ready-made multi-vendor eCommerce solution but can be time-consuming and offers limited scalability with a rigid structure.
• With a custom-built solution, the scalability options are fully under your control. You can scale your system as much as you wish depending on the load and your changing business environment.

8. Intellectual Property

• You will own no intellectual property when using a ready-made multi-vendor eCommerce solution as you are going to reuse the solutions developed and created by others. No matter how you customize it as per your requirements, the IP will still belong to the platform provider. Also, you will have no advantage over your competitors, as you will not be able to offer a unique product.
• While a custom-built multivendor ecommerce marketplace solution is solely designed and developed for your business and your company hence; you will hold the intellectual property of the custom software so you will have a competitive advantage.

Summing Up

As we said before, both have their pros and cons hence the choice of development method for a multivendor ecommerce marketplace solution may be rather difficult and can be affected by multiple factors. However, if you have a time issue and cannot afford a huge expense then you can go with the readymade marketplace script as it is very cost-effective and user-friendly but, if you wish to stand-out in the market and create a multi-vendor marketplace eCommerce solution that will become your signature and your statement with its uniqueness then, investing in custom software development is the right thing to do.

If you need a more detailed consultation on creating a multi-vendor marketplace or are looking for an experienced Magento marketplace software builder, MobiCommerce is the name, remember it.

Dipika Jadwani

Dipika is a skilled marketer who manages marketing communications at MobiCommerce. From content and social media to branding and PR, Dipika overlooks all aspects of digital marketing meticulously at MobiCommerce. She collaborates extensively with the sales and operations teams to bring more business and build a loyal customer base.