Multi Vendor Marketplace – Concept


Can someone clarify for me the following?

Option 1: the products are shipping from a single location, ( example: Amazon ) – Items are placed in a single shipping packages?

Option 2: if 10 products are purchased from 5 different vendors, it would then require that the customer would receive 5 different packages from 5 different locations?

The shipping totals might be completely different for each and would have to be itemized as such where the payment is being processed.

The possible nightmare would always exist where a shipment was not properly executed and the customer directly uses the charge-back process. The entire sale amount is now for the most part frozen, refunded or allowed.

This being the case, would a multi-vendor site be the the same as a multi-dropshipper-vendor site?

Would it not be better to just have a site as an "vendor advertiser" ( that could show products ) which would link to individual each vendor populated products where each sale processed goes directly to the vendor admin for shipping while the payment can be separated and the merchant collects a commission or a fee?


The merchant site is:

In a mall. you do not pick up items from different stores and pay as you proceed to the parking lot.

The vendor products can be displayed, but unlike a department store where all of the items are paid at cashier, you'd actually link to individual store domains for separate processing like in a mall.

Each store builds its own traffic and customer base. Also, the each provides a dedicated customer admin link.

Besides the overall traffic building advantage, you could easily duplicate the original merchant site and build that traffic which ten could link to the same of a completely different group of vendor store domains, thereby repeating the same sales opportunities.

As an "advertiser site" would you not have far more up-side revenue potential with much less of the potential risks then attempting to fool the visitor that you have many products from many vendors to make your site look bigger then it actually might be?

So, if this was a better option, the elephant in the room is the management and the cost of running a site like this. Most all eCommerce platforms do not support a single admin managing multiple products on multiple domains. Each, require you create a separate account for each store.

An exception might be Shopify Plus ( at $2,000 per month for up to 10 stores, then $250 for each thereafter )

If the cost factor was more like $10 per month for each store and all of the stores could be managed from a single account, would you be more likely to develop the individual multi-vendor-hosted-domains?

I appreciate any of your comments.

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