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New White Paper – Marketplace, Drop Ship, & Hybrid Models


The size of the global eCommerce market is forecasted to be USD 7.38 Trillion by 2025. The recent advancements in logistics, high internet penetration, decline in internet prices, the increasing number of smartphones, are some of the key drivers behind this growth. Technologies such as big data, artificial intelligence, product localization, and personalization are also playing a critical role in the growth of digital commerce.

At the heart of this growth is the multi-vendor e-commerce model that has been popularized by the likes of Amazon, Alibaba, and eBay. Multi-vendor commerce refers to a website where products and services from multiple third-party vendors are showcased on a common storefront for buyers. For buyers, such sites represent convenience and choice where they can order products from several different vendors while paying for all of them in a single transaction.

McFadyen Digital’s Brand New Whitepaper

In our latest whitepaper titled Marketplace, Drop Ship, and Hybrid Models of Multi-vendor Ecommerce we look at the three business models that multi-vendor commerce can leverage. We deep dive into each of this fulfillment models.

1. Dropship Model – How does the drop ship model work, who benefits from the drop ship model, What are the benefits and challenges, What technologies enable drop ship?

2. Third-Party Marketplace Model – What is marketplace, How does the marketplace model work, Who benefits from the marketplace model, What are the benefits and challenges, What technologies enable marketplace.

3. Hybrid Model – Defining a Hybrid Approach, What is a hybrid model, Who benefits from the hybrid model, Who uses hybrid model?

4. How to leverage the hybrid model for successful multi-vendor commerce.

Download the White Paper here to learn the differences between drop and marketplace models. While each of these business models/ fulfillment options have their benefits and challenges, the good news is that they are not mutually exclusive and can all be leveraged to various degrees depending on the business need of the marketplace operator.

Creating a winning multi-vendor strategy starts with solid planning, which can seem daunting. But you don’t have to break a sweat because we have created a 6-step plan derived from 15 years of building & implementing marketplaces and 20 years of personalizing customer journeys.

Multi-vendor marketplaces are a complex beast to build, launch and operate. It needs orchestration between various disciplines like commerce, fintech, and logistics. Your multi-vendor marketplace journey begins with getting clarity on the marketplace model (drop ship/ marketplace/ hybrid), developing your vision, and choosing the right platform for the job. When it comes to business models, Drop ship and marketplace both support an inventory light model and help scale the business faster. While Drop ship provides control over price and margin, the marketplace helps with faster entry to new categories. No matter your business’s strategic goals, the marketplace experts at McFadyen Digital can help you kick-start your journey – with drop ship, marketplace, or a hybrid model. We’ll examine your current online shopping strategy and Technology, creating actionable steps to take things to the next level. Get in touch info@mcfadyen.com to take the first step.

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