Adopting multi-vendor marketplace model : strategies, motivations, challenges, and success factors for small-scale businesses

Abstract

Context: The rapid transformation in the field of global e-commerce has prompted many traditional online stores to explore multi-vendor marketplace models allowing several independent sellers and buyers to interact to buy and sell on their platform, forming a dynamic ecosystem. Large corporations have successfully dominated the marketplace industry, leaving smaller online businesses pondering about the strategies, advantages, challenges, implementation steps and success factors of adopting the multi-vendor marketplace model. Thus, comprehending how and why SMEs can successfully adopt multi-vendor marketplace model is a crucial topic today in the field of e-commerce. Objective: This study aims to understand the transition of a small online store into a multi-vendor marketplace. Primarily, the study analyses the strategies for adoption of multi-vendor marketplace, possible advantages of the adoption, the challenges faced during the process, and the primary implementation steps and success factors of the multi-vendor marketplace adoption.

Method: A multi-vocal literature review on multi-vendor marketplace adoption combined with the case study of Zonult Oy was conducted. A total of 94 studies (both white and grey literature) from 2000 to 2026 was gathered and thoroughly examined using the thematic analysis framework established by Braun and Clarke (2006). The case study of Zonult Oy was conducted with stakeholder interviews to further support the findings of the literature review with empirical insights. The findings of the two methods were syntherized together to form practical recommendations for Zonult Oy.

Results: Through the multi-vocal literature review and case study, this paper identifies four primary strategies of adopting multi-vendor marketplace model: strategic planning and business model design, technological and platform development, vendor and customer acquisition and retention, and launch, growth, and continuous optimization. Moreover, the study also identifies primary advantages including business growth and profitability, enhanced customer value, innovation and adaptability, and entrepreneurial advantages like faster launch and lower risk. Furthermore, major challenges such as organizational transformation challenges, technical and operational challenges, market and ecosystem challenges, financial and managerial risks, and customer experience complexity were identified. Successful adoption of multi-vendor marketplace model requires a phased transition in terms of strategy, market, organizational, and financial readiness. Similarly, the implementation steps such as business model and monetization design, technology selection and platform development, MVP development and feature implementation, UX/UI Design and Mobile Readiness, Vendor Ecosystem setup, Marketing and Launch, and Scaling and Continuous Improvement were identified. Furthermore, this paper identifies key success factors of e-marketplace adoption such as strategic and governance success factors, technical and platform success factors, trust, UX and customer experience, vendor quality and marketplace liquidity, marketing, growth and analytics, and financial sustainability and risk management.

Conclusion: The study shows that adopting a multi-vendor marketplace model is an attainable goal for SMEs despite being a complicated process, if there are clear strategic vision, robust technological infrastructure, and strong vendor and customer ecosystem. This study enhances the understanding of platform-driven business transformation for SMEs such as Zonult and offers actionable recommendations for the adoption of multi-vendor marketplace model.