How to use the vendor management properly in a multi-vendor marketplace platform here.
So you’re looking to build, manage and scale your multi-vendor marketplace website with Magento 2? If yes, that’s so great; give yourself a self-appreciation because everything will be well with your eCommerce business and in line as you planned.
However, if you have a slight dilemma on how Vendor management works in the Magento marketplace and want to know exactly how it will help you, then you’re in the right place. Go ahead and read the article; you’ll learn about it.
Vendor management in a multi-vendor marketplace platform is one vital thing to understand, as the vendors are the building blocks of a multi-vendor business model. These vendors play a huge role in your marketplace business success.
The topic can be put on a small plate, but it doesn’t enough to talk about the whole topic with such constraints. Let’s start with the entire vendor management thereon.
Vendor management – roles to play
Generally, vendor management is listing, managing, and effectively enabling them to sell their products and services on a multi-vendor marketplace platform where multiple vendors participate and offer their niche.
Most vendor management helps marketplace businesses to empower potential risks, improve better service efficiency, reduce the cost of deliverability, derive value from vendors, and sometimes aid in cost-cutting
At the best, vendor management helps the marketplace admin work, share, and maintain long-term relationships to succeed. It goes to any level of success if in case the platform has multiple vendors.
So managing several such vendors needs a proper system to list, control and manage. Hence, that’s where the vendor management system or VMS in a multi-vendor marketplace comes in place.
Vendor management is not so different in a basic form for any ecommerce package, so things are a little different when it comes to the marketplace platform.
Vendors are merely your product manufacturers or re-seller, same with an internal inventory. They have products from multiple vendors, so you would want to keep inventory as up to date as possible, right. Suppose any vendor sells a unit that also lists with you. In that case, most will have an API where the inventory is on hand at the vendor’s warehouse and is processed by a background process, mostly.
It would update your inventory in Magento 2 admin panel. So that it all ideally get all together, and your inventory is updated at any time. There is still so much to work on vendor management, and it requires a lot of core system functions.
So to have much vitality, Magento 1 only does small and mid-size businesses well. Still, larger-sized businesses will have multiple vendors, for which Magento 2 is geared with its ultimate extension called “Multi-vendor marketplace” for Magento 2.
Stages of vendor management in a multi-seller platform
Any vendor management will never stand without these five stages that help in a better vendor-admin relationship and solidify the multi-vendor business streamlining; they are:
- Establish good vendor regulatory guides
- Vendor selecting and assessing
- Vendor onboarding
- Commission negotiation
- Business assessment
- Vendor monitoring
Together, these stages of vendor management flow are vital to aligning business with success because the vendors and their relationship with the marketplace’s admin is the key to working in harmony and prospect with the multi-vendor business model.
To understand the vendor management and their inventory in the best way, putting them in a simple example would help. Let’s assume:
Suppose I own a marketplace platform, and one of my vendors added “Product A” in the catalog to give you an example. If the vendor has 50 units of the product available today, and I am showing 50 units on my website. So then, how do I keep track of whether he sells a few of those to physical or some other e-commerce site?
And how exactly does tracking inventory work with vendors in the marketplace goes? Is there an application or extension of Magento 2 which should be installed at the vendor’s end to update the system? Or is it done in some other way?
Yes, there are not many ways to help you out, but there is a solution still for you.
Take the Hassle out of seller management
There’s no one-size-fits-all solution for managing the complexities of vendor-admin relations. However, there are tools available that can make this job a lot easier—for both you and your vendors.
Fortunately, Webnexs extension has made it possible, and it’s the most robust Multi-vendor marketplace extension to date that ever developed to streamline your vendor management with the automated flow.
From providing the best-in-class vendor management, reducing vendor-related risks and increasing cost savings, every Magento extension works to bring unique outcomes. Putting them all together, Webnexs’ Multi-vendor marketplace has numerous benefits to bring your marketplace business ecosystem.