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Seller and vendor: a comparison of the two sales models
Let's explore together the main features of the Seller and Vendor sales models on marketplaces.
Seller vs vendor: which model is more advantageous?
In recent years, online marketplaces have become an essential channel for businesses, from small artisans to large brands. When it comes to sales on marketplaces, there are two main models to choose from: Seller and Vendor. The choice of model can impact the success of online sales, and each approach has its own specific features, advantages, and disadvantages.
Seller model: control and visibility on marketplaces
Sellers are vendors who, operating online, use marketplaces to sell directly to consumers, taking advantage of the visibility and opportunities to reach a broad and diverse audience.
Key features of the Seller model:
Autonomy in inventory and offer management: Sellers maintain full control over stock levels, availability, and product distribution methods.
Freedom in product descriptions and presentation: they can customize descriptions, images, prices, and promotions, tailoring them to their brand without compromising its identity.
Access to a wide customer base and integrated marketing tools: marketplaces provide Sellers with a solid user base and promotional tools to enhance the visibility of their products.
Vendor model: wholesale supply and control entrusted to the marketplace
Unlike the Seller, who sells directly to end consumers, the Vendor is a supplier who collaborates with marketplaces to distribute their products wholesale. In this model, the relationship between the Vendor and the marketplace is governed by a contract that sets the supply terms, prices, and sales conditions, making the marketplace an intermediary between the brand and the customers.
Key features of the Vendor model:
Direct supply to the marketplace: the Vendor delivers a predetermined quantity of products to the marketplace, without the need to manage real-time inventory.
Delegated management of marketing and pricing: the marketplace handles promotional strategies and pricing decisions, allowing the Vendor to focus on production and the quality of their products.
Seller vs Vendor: A Comparison
The distinction between Vendor and Seller is crucial as it determines how products are managed and sold. Therefore, it represents a primary choice to consider when deciding to start an online business.
Let's take a look at the main benefits and disadvantages of each model:
SELLER Benefits:
Disavantages:
| VENDOR Benefits:
Disavantages:
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Seller model vs. Vendor model: which is the better choice?
The choice between the Seller and Vendor models depends on the nature of the brand and the business strategy.
Seller models offer greater flexibility and independence, making them ideal for businesses that want to maintain control over pricing and marketing strategies.
In contrast, Vendors are generally companies that prefer a turnkey solution, where the marketplace handles all aspects of the sale, allowing them to focus on supply and product quality.
Currently, the trend towards adopting the Seller model on marketplaces is gaining momentum, as it offers greater flexibility and opportunities for sellers. Marketplaces, recognising the advantages of this model, are expanding their offerings to include direct sales from brands. This transition facilitates the entry of new players into the market and also promotes healthier diversification and a better experience for consumers.
A striking example of this trend is Zalando. Traditionally set up with a Vendor model, the platform has recently integrated the Seller mode into its business plan, allowing brands and retailers to independently manage their sales and shipments. This strategy has led to a significant increase in revenue, as Zalando, like many other marketplaces, has been able to expand its offerings and attract a greater variety of products.