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Creating A Multi Vendor Store Using Magento 2 Marketplace Extension

Updated on March 21, 2019

5 Min Read
Magento 2 Marketplace
Reading Time: 5 minutes

Today, Amazon, eBay, Etsy, and Alibaba are the most popular global ecommerce destinations. It is not difficult to imagine the business model that has helped these websites grow into the leading web-based stores. These websites have a vast inventory because many suppliers, vendors, and sellers from across the world do business on these websites (that’s why they are known as the multi-vendor marketplace). In this post, we’ll be discussing how to create a multi-vendor store using Magento 2 marketplace extension.

In this tutorial, I will share the process of creating your very own online multi-vendor store using Magento marketplace extension. The process is not that complicated, and once the website goes live, you could concentrate on marketing activities to grow your business.

Benefits of Multi-Vendor Marketplace Website

An online marketplace offers significant benefits to your online business model:

  • You can invite and allow various vendors for selling their products on your marketplace.
  • Diversify products on your website. The customers will return to your marketplace again and again for the wide range of products.
  • Your Magento 2 marketplace will gradually grow into a community. This community will become a central location where suppliers and customers promote the products and services.
  • Online marketplace Magento websites generally receive more traffic than traditional ecommerce websites. The result is an impressive customer database that is ideal for the marketing strategy for your business.
  • As the website owner, you get the commission(s) for the products that the vendors sell on your multi-vendor store using Magento 2 marketplace extension. The profit will increase exponentially as the number of vendors and products increases.
  • Vendors also benefit from joining your Magento 2 marketplace. They can leverage traffic to reach more customers. This is an excellent opportunity for small stores and vendors with little budget for marketing and customer outreach.
  • Customers benefit from the competition among the vendors. They have the opportunity of selecting from a diverse inventory at very competitive prices. Other benefits include support, warranty and delivery time).

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When you convert your website into an online marketplace, you might face the following problems:

  • Choosing the perfect platform for your marketplace is a real challenge. Several popular platforms offer marketplace extension for building marketplaces.
  • The initial costs could be high enough for many people. Also, many budding marketplaces might not utilize all the features of the extension.
  • Marketplaces could be centered around diverse types of products including physical products (clothing, shoes, jewelry), downloadable products (video, software), and virtual products (courses, services, tours)
  • Managing the vendors, inventory, transactions, money management is a real and very daunting challenge.

I used the following platform for my online marketplace:

Magento 2 Platform: This is a very robust platform that supports many essential features such as order management, invoices, shipments, shipping methods, payment methods, and customer information management. Magento 2 incorporates very flexible inventory options for managing categories and products. Also, it supports all product types such as simple, virtual, download, configurable, bundled, and grouped.

Magento 2 Marketplace Extension by Magebay: This module includes all the features that a marketplace website requires. The Magento 2 marketplace admin could efficiently manage the marketplace through features such as vendor management, sales management, messages, withdrawals, reviews and vendor ratings.

Features of Magebay Multi-Vendor Magento 2 Marketplace Extension

  • Register a vendor account: Vendors need to enter information such as name, email, company name, phone number in vendor register page to register an account. This account is then sent to the admin for approval. After reviewing the information, the admin could either approve or reject the account. The admin can create also update or create vendor information in the backend.
  • Vendor’s Products: A vendor can create their products on the seller dashboard. This module is ideal for creating products in all categories including downloads, virtual, and bundles. For each product, the vendor can set quantity, special price, tier price, and related options.
  • Manage Messages: The customers can quickly send messages to vendors about products in both pre-sale and post-sale stages.
  • Manage Withdrawals: Vendor can see their account balance and send a withdrawal request to the owner of the marketplace. The vendor can also view the complete withdrawal history. The admin gets an email notification about the withdrawal request from vendors. Once receives, the owner could send or schedule the payment.
  • Manage Reviews and Ratings: Customer could give reviews, feedback for the products purchased or a particular vendor. The admin can manage all the vendors’ reviews in the backend.
  • Favorite Features: Magebay Magento 2 Marketplace extension supports many plugins including Advanced Commission, Table Shipping, Paypal Adaptive Payment, Seller Price Comparison, Vendor social login, Vendor vacation. You can see more details at Magento Marketplace Plugins

Create a Multi-Vendor Store Using Magento 2 Marketplace Extension

Install Magento 2

Cloudways offers you the ease of hosting your Magento 2 stores on any of the five top cloud providers, AWS, DigitalOcean, Vultr, GCE, and Kyup. You can successfully install Magento 2 in just a few clicks. First, you need to sign up for an account.

Download & Install Magebay Multi-Vendor Magento 2 Marketplace Extension

  1. First, purchase and download the package extension. For this, visit Magebay Magento Marketplace Extension
  2. Unzip the extension file, and you will get an app folder.
  3. Login to your web hosting server via SFTP and upload the app folder to the root of your Magento 2 store.
  4. Now connect to your hosting server using SSH and run the following CLI commands to finish the installation of the extension:
php bin/magento module:enable Magebay_Marketplace Magebay_Messages
rm -rf var/di/* var/generation/* var/cache/* var/log/* var/page_cache/* var/session/* var/view_preprocessed/* pub/static/*
php bin/magento cache:clean
php bin/magento cache:flush
php bin/magento setup:upgrade
php bin/magento setup:db-schema:upgrade
php bin/magento setup:di:compile
php bin/magento setup:static-content:deploy
php bin/magento indexer:reindex

Configure the Multi-Vendor Magento 2 Marketplace Extension

The next step is the configuration of the extension.

First, log in to your Magento 2 backend panel. Once in, go to Marketplace > Configuration and expand the General Settings section.

In this section, you can see the option to enable marketplace features. You need to select Yes and click the Save Config button.

Configure Marketplace Extension

At this point, your website has transformed into an online marketplace.

To test it, go to to see how it is working. The vendors can create an account by clicking the OPEN YOUR STORE button.

Marketplace Page


Building Magento 2 Marketplace website has never been easier. The best strategy is to use any Magento marketplace plugin to create the store and then focus on business development.  This will save time and money that could be better utilized in business promotion activities. Magento 2 Multi-Vendor Marketplace extension by Magebay is 100% open source and is not encrypted, so you are free to customize all features to suit your particular requirements.

Cloudways has also arranged a discount of 10% on Magento 2 Multi-Vendor Marketplace extension by Magebay. To avail, this offer, use the coupon code: CLOUDWAYS10

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Fayyaz Khattak

Fayyaz is a Magento Community Manager at Cloudways - A Managed Magento Hosting Platform. His objective is to learn & share about PHP & Magento Development in Community. Fayyaz is a food lover and enjoys driving. You can email him at

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