How does the multi-vendor marketplace business model work?

The business model of multi-vendor marketplace differs according to the type of business, target market, and the geographical area. Following are a few business models,

• Commission model
• Subscription model
• Service charge model

Commission Model:

This model generates revenue through commissions. Different commission rates are fixed for various products, and the business growth is accelerated through the commission percentage. This model motivates in pushing sales higher, which directly increases the revenue generation.

Subscription Model:

The subscription model is the least complex and best business model. This model offers many discounts and waivers to create high engagement. Subscriptions are based on a yearly and half-yearly basis.

Service charge Model:

Independent online grocers adapt the service charge model. They charge a specific amount as a service charge for the online grocery service they provide to the customers. The primary source of revenue in this model is the service charge, and then comes the profit on the products.

Source On: https://www.softsuave.com/blog/upgrade-your-grocery-business-using-a-multi-vendor-application/