Multi-Vendor Marketplaces: The Next Generation of Retail Commerce

Retail commerce is at a turning point. As economic pressures tighten and consumer behaviors shift rapidly, traditional retail models are proving too rigid to keep pace.

In response, forward-thinking retailers are turning to multi-vendor marketplaces as a way to stay competitive, adaptable, and efficient.

This new model allows retailers to dramatically expand their product offerings without taking on the burden of inventory or warehousing. More than just a logistics strategy, multi-vendor marketplaces represent a new philosophy in retail commerce.

In this article, we explore how this model is transforming the industry, the technology that makes it possible, and how retailers can adopt it successfully to drive long-term growth.

A Bold Bet: The ASOS Marketplace Story

Back in 2010, ASOS made a daring move. The UK fashion giant, known for selling celebrity-inspired apparel, launched a new marketplace allowing independent boutiques and vintage sellers to sell on its platform.

What started with 20 handpicked vendors has grown into a network of over 800 boutiques worldwide.

This curated diversity has become a key differentiator, giving ASOS a competitive edge through expanded international reach and a broader product catalog that speaks to a range of consumer tastes.

A Changing Landscape in Retail Ecommerce

In 2024, marketplaces dominated online retail. In the U.S. alone, marketplace sales accounted for more than one-third of ecommerce transactions.

By 2027, that figure is expected to hit $603 billion, up from $385 billion in 2023—a growth rate of over 10% year-over-year.

Retailers are moving away from traditional in-stock models toward marketplace operations to stay competitive and future-proof their businesses.

This approach lets them respond faster to consumer trends and expand product lines without tying up capital in unsold inventory.

Wholesale vs. Dropshipping vs. Marketplace Models

“Traditional wholesale is risky” explains Jon Bolt, CEO of Onport, a platform specializing in multi-vendor and dropshipping automation. “Retailers buy large quantities, store them, and hope they sell—often resulting in end-of-season markdowns.”

In contrast, a dropshipping or marketplace model lets businesses test new categories and scale without stocking products. Here’s how they work:

• Dropshipping: Customers buy from the retailer, who then purchases the product from a third-party vendor. The item is shipped under the retailer’s brand.

• Marketplace: The retailer connects the buyer directly with the vendor, who fulfills the order under their own brand. The retailer earns a commission.

Retailers can tailor these models based on how transparent they want to be with their customers. Some highlight the third-party nature of the purchase to set delivery expectations; others absorb vendor logistics entirely to maintain brand consistency.

The Role of Technology in Modern Marketplaces

A decade ago, launching a marketplace required extensive development and high costs. Today, plug-and-play platforms like Onport allow retailers to build and scale marketplaces quickly, affordably, and effectively.

Technology now plays a central role in managing operations across vendors, customers, and categories. From onboarding to returns, modern marketplace solutions must support:

• Automated vendor registration and catalog syncing
• Flexible order routing logic
• Integrated shipping and payments
• Transparent return workflows
• A composable architecture for customization at scale

“Retailers have diverse goals, so it’s essential to have a technology platform that can support those unique needs” says Jon Bolt. “Many prioritize a flexible order routing system—one that can identify the nearest seller to the customer or prioritize sellers offering better commercial terms. As goals evolve, so must the platform.”

With over 200 customers—including brands like Stadium Goods, Cupra, Ivalo, and Naduvi—Onport is leading the way in helping retailers scale with agility and precision.

The Power of Personalization: The Curated Marketplace

Amazon may dominate the West as a mass-market marketplace, but its "everything store" model leaves room for retailers to stand out through curation.

Today’s shoppers expect personalized, values-aligned experiences. This is where curated marketplaces shine—offering shoppers tailored product selections that resonate deeply.

As ecommerce evolves, personalization is becoming a competitive necessity.

Success in Niche Markets: Hole-19’s Marketplace Move

Hole19, a golf-focused app, exemplifies this shift. Initially launched as a GPS and tracking tool, it expanded into ecommerce by creating a golf-specific marketplace featuring apparel and equipment.

Using Onport’s infrastructure, the company launched a tailored marketplace that features trusted brands and recommends products based on individual user behavior. It allowed them to create a commerce layer that matched their community’s needs perfectly.

“The marketplace business model was a natural fit for their app”, says Jon Bolt. “It allowed them to showcase the best golf gear to millions of enthusiasts and deliver personalized product recommendations. Customers trust the experience because it comes from a brand that truly understands their sport.”

Hybrid Models: The Best of Both Worlds

To maximize flexibility, many retailers today are adopting a hybrid model—blending marketplace, dropshipping, and even traditional in-stock operations. This lets them offer a wider selection of products, meet customer expectations, and test new categories—all while keeping logistics lean.

Retailers like John Lewis exemplify this approach by offering a variety of supplier options—wholesale, concessions, and dropshipping. This agility improves speed to market and ensures the platform stays competitive and relevant.

While this model introduces some backend complexity, the benefits of multi-revenue streams and increased assortment outweigh the challenges—especially when powered by a flexible commerce platform.

Scaling Smart: How to Grow a Marketplace Successfully

Scaling a platform isn’t just about adding products—it’s about strategic planning and seamless execution.

1. Start with Strategy

Retailers should define clear goals and conduct deep market research to understand customer expectations, pricing models, and vendor capabilities. Without this, they risk misalignment between product offering and market demand.

2. Choose the Right Architecture

Whether using SaaS, open source, or headless commerce, the tech stack must be scalable, mobile-friendly, and adaptable to changing needs.

Composable architecture allows retailers to swap in new features—like a shipping provider or payment processor—without overhauling the entire system.

3. Prioritize Mobile and Peak Performance

With 62% of ecommerce sales expected to happen via mobile by 2027, the customer experience must be seamless across devices.

Marketplaces must also withstand high-traffic periods like seasonal sales or product launches.

4. Adopt a Culture of Iteration

Progress doesn’t always require new investments. Retailers should regularly evaluate existing tools for underused features and focus on incremental improvements that drive customer satisfaction and internal efficiency.

Final Thoughts: A Model for Resilience and Growth

The multi-vendor marketplace model isn’t just a trend—it’s a strategic necessity for modern retailers.

Whether launching a niche platform like Hole-19 or building a curated experience like ASOS, retailers that combine smart tech choices with flexible operations will thrive.

Book a demo today and discover how a flexible, automation-powered platform like Onport can help you launch and grow your own multi-vendor marketplace—without the overhead of traditional retail.