Essential Features of an eCommerce Marketplace

The popularity of the eCommerce marketplace is not a new story. Many popular marketplaces like Amazon, Walmart, Alibaba, and others have been rapidly expanding in the last few years.

During the pandemic, most of the world went into lockdown, forcing many businesses to shut down temporarily. At that time people increasingly started to rely on online shopping. The fact that customers were already embracing Amazon and other online marketplaces, made this transition considerably easier.

Due to this, the digital industry can see a huge demand for an eCommerce marketplace.

According to Statista, it has been found that more than 2 billion individuals will be accessing the online marketplace by the year 2023, and cross-border eCommerce sales might reach up to $3.43 trillion.

Consumers’ purchasing habits and lifestyles have changed immensely as a result of the eCommerce business. In the modern world, we can shop from the convenience of our homes for a range of goods. This is a result of the benefit end users receive from the eCommerce marketplace.

Furthermore, the eCommerce industry has not only simplified and eased shopping for customers, but it has also created new opportunities for businesses to grow and establish a strong online reputation. 

Let us examine the must-have features of an eCommerce marketplace from different perspectives ÔÇò admins, sellers, and buyers. 

 

How does an eCommerce Marketplace Function?

An eCommerce marketplace streamlines the entire process of buying and selling products via one single platform, where the admin manages the platform, different vendors sell their products directly to the customers and the audience gets to choose from a wide range of products.

There are three parties involved when the sales are made on marketplaces.

•  Admin
•  Seller
• Customer

eCommerce Marketplace Features For the Admin 

Admin is the one responsible for managing both customers and vendors in the marketplace.

Therefore, the admin requires multiple features that can allow full freedom to handle the platform successfully.

Let’s examine the key features of admin.

1. Order Management 

An eCommerce marketplace not only enables additional sales but also organizes data. When a new purchase is made, the administrator is notified via text message or email. This allows the admin to manage parameters such as the total number of orders, order delivery date, the turnaround time for delivering products, the average number of orders per week, order by location, and much more. When a customer completes a purchase, the order status is updated at the back end. The admin can check the status of orders and mark them as delivered successfully.

1. Product Catalog Management

This feature allows the admin to create a page containing goods or services offered by multiple vendors. This not only makes it easy for sellers to select a specific product with high-quality images but also allows them to add the price along with the detailed description as well as the quantity of that product they have on hand.

A well-organized catalog not only makes it easier for shoppers to find what they are looking for but also offers information that helps them make buying products.

1. Reports and Analytics

The marketplace provides a complete overview of sales performance through the dashboard feature. This feature provides the admin with a variety of performance reports. The results of the analysis are then used to increase sales and improve the customer experience on the marketplace app. 

Data is a valuable aspect of an eCommerce marketplace. With the help of integrating reporting and analytics admin can analyze sales reports or anticipate demand to make sure that the inventory can meet that demand.

This feature provides all the information to the admin about customer behavior, session time, cart abandonment reasons, and so on. Based on this information, the admin can optimize the marketing approach as well as the performance of the website

1. Vendor Management

The eCommerce admin should be able to add vendors with ease and monitor their orders, sales, and commission profits through their product sales or orders. There are several functionalities for categories and brand management to let customers browse and shop from different brands.

1. Content Management

The admin of the marketplace can control the content on the website. The admin can easily personalize the platform by adding banners, changing content, product categories, filters, and much more.

1. Product Review Management

This feature helps the admin in establishing a product’s credibility and maintaining its brand value among customers. This feature also assists the admin to manage inappropriate reviews of customers. A mix of good and bad reviews is always the best while managing reviews. 

In addition, this feature not only helps to maintain the standard of the marketplace but also enhances the conversion rate of the products. Because customer reviews are one of the important eCommerce marketplace features which boost the marketplaceÔÇÖs credibility.

1. Payment & Refund Management

This feature enables the marketplace administrator to manage payments. This feature simplifies management by accepting payments from users and managing sellersÔÇÖ payouts. The admin can accept user cancellation or return requests and initiate refunds.

1. Logistics Management

Most eCommerce marketplace operators provide logistics services to sellers in order to provide a high-quality customer experience. This feature aids in logistics management and keeps the buyer and seller informed of shipment and order status.

1. Features to Allow Multiple Revenue Generation Channels 

The administrator should be able to track a vendor’s total revenue, a commission earned through that vendor, and so on. Here is a list of some of the revenue streams that the admin can generate.

• Commission┬á

In this revenue model, the admin charges his or her user a fee for each transaction. It is by far the most common online marketplace business concept. When the customer pays the provider, the marketplace charges a percentage or a fixed fee for its services. 

The admin may charge either the seller or the buyer. Another possibility is to take a commission from both of them

• Subscription

In the subscription model, a user is charged a monthly fee for accessing the marketplace. For many marketplaces, it is the main source of revenue generation. Through this model, an admin can charge their users or subscribers contingent on a certain interval of time ÔÇô daily, monthly or annually to access their services.

• Per Pay Click (PPC) Advertisements

Admin allows sellers to publish advertisements on the marketplace, expanding the reach of their brands. This allows the admin to earn from each click.

1. Marketing Strategy For Admin

These two strategies will surely gonna help marketplace owners for successful eCommerce marketing.

• Promotion Management

Admin should promote the brand and the platform so that multiple audiences will visit the store effectively and make purchases. Admin can create promotional offers to fulfill their business objectives and brand marketing to obtain better results.

• Affiliate Module

In this model, affiliates can earn a commission for marketing a companyÔÇÖs products or services. ItÔÇÖs a simple relationship between two parties ÔÇô the marketplace owner and publisher.

A marketplace owner has products they want to sell, and a publisher promotes these products on their own site and earns a commission on every sale or action.

eCommerce Marketplace Features for the Seller

An eCommerce marketplace has multiple sellers and therefore, it has a separate set of features that makes it quick and easy. 

So, here is a list of essential features for sellers which will help you to understand and learn what functionality will make vendors choose your platform for selling their products.

1. Separate Vendor Panel

Sellers should have their own unique storefront where only their products are displayed and customers can look for them with a simple search. The various functionalities added within the vendor panel for categories and brand management not only help to serve the purchasers to browse and shop from different brands but also helps vendors to increase brand awareness.

1. Profile Creation & Listings

When a seller checks his profile after signing up, he can easily add new information and edit his profile. The seller can upload or list his product inventory on the portal once he has accepted all of the terms and conditions of the marketplace platform. And after checking it, the marketplace owner can approve the stock. Furthermore, a vendor can also manage his listings from this page as well.

1. Inventory Management

Sellers should be capable of efficiently managing their inventory and orders. With this, they can quickly update the status of their products (in stock, out of stock). Additionally, sellers can also manage cancellation and return requests for their products actively.

1. Import/Export

This feature is essential for sellers to import/export data to/from their virtual storefronts from tax categories to selling products. This process eases the management of product listings for them as the data can be transferred in bulk which saves time and resources.

1. Customer-Vendor Communication 

Communication is very important in resolving order concerns with buyers and helping them throughout their buying journey because it affects the marketplace’s sales and profitability. A flexible communication channel between sellers and customers can be established through a variety of methods, including live chat, feedback or review section, and more.

1. Options for Products Promotion

The eCommerce platform is likely to have several vendors. Every vendor will make an effort to attract customers’ attention. They will use a variety of marketing techniques to advertise their goods and services on market and boost sales. Sellers can benefit from some of the most effective advertising strategies, such as

• Offers and discounts 
• Mail subscriptions
• Including high-quality pictures and videos in your marketplace
• By using a creative advertisement banner 

1. Shipment

Sellers should be able to control how their products are shipped individually. If vendors wish to use a shipping firm, they should look for one with pre-integrated advanced shipping features like live order tracking, scheduled delivery, and pick-up location. These features also enhance the purchasing experience for clients.

eCommerce Marketplace Features for the Buyers

Here are some key features that an eCommerce marketplace must have for its customers.

1. Simple and Easy Navigation System

Simple navigation is essential for a successful e-commerce website. Because of this feature buyers should be able to visit your website pages with ease. Additionally, it also boosts their chances of purchasing from your online store.

Product categories and classes that are organized make it easier to navigate. It is best to list your product in organized categories and classes. Your customers will find it simpler to browse the products they wanted. Search engines are made easier to use by a well-designed, organized, and adaptable website. Your website is scanned and placed high on search engine results pages.

1. Multilingual/Multicurrency

Providing multi-lingual and multicurrency support is very important if you are expanding your business worldwide. This feature enhances the customer experience as they are able to view and more likely to buy a product if they are presented in their preferred language and currency.

1. Easy Checkout

It is important for the admin to ensure that the customer has a positive online buying experience. A speedy, frictionless, and easy checkout procedure would make this possible.

Customers should be able to see on the first page of the checkout process how many steps are necessary to finish it. The page should be well-organized and informative. Prior to checking out, the delivery date and shipping costs should be disclosed. There shouldn’t be any extra fees that appear on the final checkout page. As a result, trust is increased and the checkout process conversion rate rises.

1. Multiple Payment Options

Make the purchasing process as simple as possible for the customers by including a variety of online payment options in the shopping cart. This will increase the chances of closing the sale during the final checkout step on the website.

For example, Consider adding options for preferred and secure payment processors like PayPal or Stripe. Additionally, provide other payment options on the platform like cash on delivery, eWallets, internet banking, and more ÔÇò along with your selection of payment processors, which will not only give your customers the freedom to choose a preferred mode of payment globally but also enhance their shopping experience and helps them to move out quickly through the checkout funnel.

In addition, providing plugins with a buy now, pay later feature helps to encourage users to click the “purchase” button.

1. Order Tracking

The first thing a consumer wonders about after placing an order is when it will arrive and this feature helps customers to access the status of their orders on your website.

A single order tracking number must be provided to the consumer after making an order so they may follow the package until it is delivered. It increases the customer’s faith in you by keeping them updated by SMS or email with every update regarding the shipment.

1. Customer Reviews

Providing customers with the option to submit reviews for the things they’ve ordered will help you build trust. These evaluations help potential customers make decisions, which raises conversion rates.

For example, numerous marketplaces like Amazon, eBay, and Etsy have effectively embraced technology. They have resources that enable them to access reports on consumer satisfaction or dissatisfaction. In this manner, they can group them and make the appropriate adjustments to solve particular problems.

Customer feedback is a valuable resource for any business, it allows them to enhance their products and provide better services. Every time a customer session is complete, ask them for a review or feedback. Admin can do this by asking them a few brief questions about their experience, and can also seek ideas for ways to make the present services better.

1. Mobile-Friendliness

According to an Oberlo survey, 56.75 percent of all online traffic worldwide is generated by mobile-friendly eCommerce marketplace. A website must be compatible with all screen sizes. Buyers will not only get the exact view but can also navigate the site easily from all types of portable devices. 

Moreover, a mobile-friendly marketplace will enhance your customers’ experience and makes it easy for the clients to browse and make purchases. 

The website will display properly on various platforms and browsers if you build a responsive marketplace website. It provides your customers with an efficient and practical ordering process.

Conclusion

The marketplace model has become one of the most promising business models nowadays. But creating a successful marketplace website requires a lot of work and having a plan ahead of time already gives you an advantage. 

Hence, the features mentioned above will assist you in terms of choosing the right turnkey solutions for the eCommerce marketplace website.

The next step would be to identify the best technology partner who might assist you in creating a feature-rich marketplace for your business. So, here is Yo!Kart is an eCommerce platform that developed expertise in understanding eCommerce success through the use of Agile methods not only in product knowledge but also in the creation and enhancement of reliable software for customers. 

Furthermore,Yo!Kart has the ability to customize the eCommerce marketplace as per your requirement at the most affordable price.