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Ways to make your Shopify Multi Vendor Marketplace a Success

Shopify Multi Vendor Marketplace is a great business idea, but unfortunately, around 90% of marketplace owners fail to get satisfactory results. Studies show that cut-throat competition and problems haunting the marketplace business often contribute to it.

Though this is true fractionally, you can overcome it by applying some simple measures. Today we will discuss a few ways to help you achieve growth with your Shopify Multivendor App or Marketplace.

Being one of the fresh concepts in the industry, Shopify multi-vendor marketplace has some promising figures. It is the primary reason why many entrepreneurs and startups invest in them.

Amazon, eBay, or ETSY are among the largest marketplaces with billions in revenue each year. These platforms themself show the potential that a Shopify marketplace app has. Despite having so many success stories, most marketplace owners are unable to achieve good results. Let’s find out why?

Why does a Shopify Multi Vendor Marketplace fail?

There can be numerous reasons for unsatisfactory results with a marketplace store or app. Below are some of the most common mistakes that lead to such situations:-

  • Failure to get dependable vendors.
  • Not paying heeds to the margins.
  • Unable to deliver a good user experience.
  • No emphasis on customer support.
  • Limited payment gateways.
  • Running out of patience.
  • Not choosing the product niche wisely.
  • No importance for market and product research.

How to overcome challenges for your Shopify marketplace app?


  • Through Market Research

Setting up a Shopify multi vendor marketplace without conducting enough research can prove drastic for your business. You need to understand the latest trends, best-selling products, and policies that your top competitors use.

It will help you choose the products that people shop, and provide the features and perks that competitor stores are offering. What can be a more viable way to beat the competition than using detailed analysis and research of industry before setting up your marketplace.

  • Partnering with reliable suppliers

The suppliers with whom you are going to work will play a vital role in the success of your Shopify marketplace app. You can’t afford delays, cancellations, or misplaced orders as they can ruin your reputation among the buyers.

You should search for only reliable or reputed suppliers so that your customers should be satisfied with the delivery of products they buy on your marketplace promptly. It is also wise to prefer the vendors who have a good history with returns of the orders.

  • Working on the intuitive user interface

As the first impression is the last, your store needs to deliver a great impression to gain customers’ trust. An intuitive design can improve the shopping experience of your users, and make your store’s first preference.

You can also work on unique functionalities and features to stand out from the competition. Studies show that stores or apps without an acceptable design fail to retain their users. Doing a competitive analysis can help you identify the features, design trends that work well in the industry.

  • Choosing the margins wisely

The most common problem that leads to dwindling multi-vendor stores is the inability to select the right margins. As your revenues will depend on the margins you earn from the sale of the products, it is a crucial factor to determine.

Store owners often stick to the lower margins just to beat the competition. Though it works to some extent, it can lower your revenues significantly. It often causes instability due to low funds and often results in operational challenges for the multi-vendor stores.

  • Providing customer support

Failure to provide customer support is yet another major reason for the failure of marketplace business. If you are running a Shopify multivendor app or marketplace store, you need to keep your customer happy for good results.

You need to act as a bridge between the customers and suppliers so that all the concerns and issues can be communicated and solved. The studies show that more than 95% of users will refrain from buying at stores with no customer support.

  • Using multiple payment gateways to encourage buyers

The best way to encourage your users for purchases on your marketplace app is by offering flexibility to make payments. If you are selling high-value products, providing an option to pay in EMIs can work favourably for you.

Similarly, options like bank cards, wallets, buy now, pay later, and more can help you to get more sales by not restricting the buyers to stick to specific payment gateways.


These were a few tips that can help you achieve success for your Shopify Multivendor app. You are going to put in a lot of money and time to set up a Shopify Multi vendor marketplace. It will be good for you to use these tips for better results to mark a concrete presence in the industry. Always remember, listening to the latest trends and needs of the customers can lead to a profitable Shopify marketplace business.


I am a Shopify app developer, with more than 3+ years of professional experience in Shopify app development services at the leading app development company The Brihaspati Infotech – providing Woocommerce development in India, and Shopify dropshipping app development.

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