Swasthya Sarathi
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Read itVendors · Commission · Split settlements
Multi-vendor marketplace development is not just a bigger store. It is a platform with two sides: sellers and buyers. We build marketplaces with vendor sign-up and KYC, a commission engine, split settlements through Razorpay Route or Cashfree, catalogue checks and disputes. GST TCS is handled correctly and the platform is ONDC-ready. We build for founders who have a real answer to the liquidity question.
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Many people think a marketplace is an online store with more products. It is not. Building it that way is the most costly mistake in this space. A store sells your stock. A marketplace connects many separate vendors to buyers and takes a commission. That one difference brings in vendor sign-up, catalogue checks, a commission engine, order splitting and disputes. The really hard part is paying every vendor their share, correctly, on time, and within the rules for moving other people's money. We build multi-vendor marketplaces as the two-sided platforms they are. We use payment systems that follow the rules, handle GST TCS and keep ONDC within reach. Before any of that, we will ask the one question that decides if the platform lives or dies: how will you solve liquidity?
Talk to a marketplace architectGST Section 52 says the operator must collect 1% TCS on vendor supplies, deposit it and file GSTR-8. It is built in from the start.
Razorpay Route or Cashfree Easy Split pay each vendor and your commission when the payment is taken, through a licensed payment company.
Vendor sign-up, checks and payouts on one side. Search, cart and checkout on the other.
Built to join the Open Network for Digital Commerce, so your buyers are not tied to a single platform.
Multi-vendor marketplace development is where founders most often miss the gap between a demo and a business. The storefront is the easy quarter of the work. The other three quarters are settlement, checks, disputes and the daily work of running a two-sided platform. Here is where the real work lives.
When a buyer pays for a cart with items from three vendors, that money cannot land in your account to be paid out by hand later. That makes you an unlicensed middleman holding other people's money, which has real legal risk in India. The right way is to use a split-settlement product from a licensed payment company — Razorpay Route or Cashfree Easy Split. It splits a single payment between each vendor and your commission the moment it is taken, and the payment company carries the regulated money flow. We build on these so payouts are automatic, easy to check and follow the rules. This is the most important choice in a marketplace build. Most cheap templates get it dangerously wrong.
Commission is never one flat number. It changes by category, by vendor level, sometimes by offer, and it affects shipping, taxes and refunds. We build a commission engine that keeps these rules as settings, not code — rates per category, rates agreed with a vendor, offer changes — and works out each person's share in the open, so a vendor can see to the rupee what they earned and why. Vendors leave a marketplace when they do not trust the commission math. So we build it to be checked, not just worked out.
Open vendor sign-up with no checks fills a marketplace with fake and banned listings, and buyers lose trust overnight. We build KYC at sign-up, a queue where listings are approved before they go live, and vendor performance tracking. Disputes and returns are a separate set of steps — who pays for a return, how a refund undoes a payout that has already been made, how a vendor is fined for repeated failures. Getting money to flow backwards correctly on a return is much harder than sending it forwards on a sale. We plan it clearly, because this is where marketplaces lose money and goodwill.
Even the best-built marketplace fails without liquidity — enough sellers to attract buyers and enough buyers to attract sellers. This is a business and launch problem, not a software one. We will ask about your plan before we quote. We would rather help you build the right narrow launch in one field than a wide, empty, beautiful platform. The software should support your liquidity plan — easy sign-up, a clear focus, and numbers that show whether the marketplace is gaining pace — and we build it to do that. But we will always tell you the software is needed, but it is not enough.
| Build a custom marketplace | Do something simpler first | |
|---|---|---|
| You have a credible answer to liquidity | Yes. You need proven buyers or sellers before you invest. | Without one, a beautiful empty marketplace is a very costly way to learn this. |
| Validating an unproven idea cheaply | Not yet. Custom is the wrong spend at this stage. | A Dokan / WooCommerce marketplace add-on tests demand for a small part of the cost. |
| Complex commission and settlement rules | Yes. This is where plugins reach their limit and custom work pays off. | A plugin only if your commission and payout rules are truly simple. |
| You must follow the payment rules fully | Yes. Split settlement on a licensed payment company, built correctly. | Never hold funds and pay out by hand — that is a legal risk, not a shortcut. |
| You are really a single-brand retailer | No. You do not need any vendor system at all. | A normal store on Shopify, Magento or WooCommerce is the right tool. |
| Speed, growth and checks at high volume | Yes. A proper framework handles more vendors and orders. | Plugins struggle with checks, speed and settlement as volume grows. |
The storefront is a quarter of it. These are the parts that make it a two-sided business rather than a demo.
Sign-up by the vendor with document KYC, bank checks for payouts, and an approval step so you control who sells on your platform.
A back office for sellers to manage catalogue, stock, orders, returns, earnings and settlement statements — the tool vendors use every day.
A queue where listings are checked before they go live, with rules and flags that keep fake and banned items off the platform.
Commission rules per category, per vendor and per offer, kept as settings and worked out in the open so vendors trust the math.
Razorpay Route or Cashfree Easy Split pays each vendor their share minus commission when the payment is taken, through a licensed payment company.
One cart with items from several vendors, split into an order for each vendor, while the buyer sees a single simple checkout.
Return and refund steps that undo an already-paid settlement correctly, with vendor fines and a record of how each case ended.
Buyer reviews, vendor ratings and scores that bring good sellers to the top and push down the ones who let buyers down.
Joining the Open Network for Digital Commerce so your catalogue and buyers reach beyond your own platform.
A buyer pays once for a cart with items from three vendors. The moment the payment is taken, the payment company's split-settlement product divides the money between each vendor's account and your commission. The funds never sit in your account waiting to be paid out by hand. This saves work and also follows the law. Every split is saved against the order, the vendor and the commission rule behind it, so the whole flow can be checked from start to finish.
The engine applies the right rate — by category, vendor level or live offer — and shows the vendor exactly what was taken and why, so the math is trusted, not argued over.
1% GST TCS under Section 52 is worked out on the vendor's net taxable supply, held back, and added up into the GSTR-8 data your finance team files each month.
Each vendor gives their own GST invoice for their part of the order, and your commission is billed to the vendor as a taxable service — all made by the platform.
The really hard case: a buyer returns an item whose payout has already been made. The platform takes back the right part of the vendor payout, changes the commission and the TCS, issues the credit note, and records who pays the return cost. Getting money to flow backwards correctly on a return is harder than sending it forwards on a sale. Marketplaces quietly lose money here when it is not planned well.
A marketplace is an e-commerce operator in the eyes of GST and the payment regulator. These duties are not optional. Cheap builds get founders into trouble here.
Collect 1% TCS (0.5% CGST + 0.5% SGST, or 1% IGST) on vendors' net taxable supplies, deposit it and file GSTR-8 monthly. It is built into the settlement flow.
Holding other people's money makes you an unlicensed middleman. Split settlement through a licensed payment company keeps the regulated money flow off your books.
Document KYC and bank checks at sign-up, both to allow payouts that follow the rules and to keep bad actors off the platform.
Each vendor bills the buyer for their part. Your commission is a taxable service that you bill to the vendor. Both are made automatically.
The Open Network for Digital Commerce lets a marketplace reach buyers and sellers beyond its own platform — a real way to build liquidity in India.
Order updates for buyers, and dispatch, payout and review alerts for vendors, on the channel both sides really read.
We start with the business risk, then build the two hardest technical parts before the nice-looking ones.
Before a line of code, we ask hard questions on liquidity: which side you start first, your field and area of focus, and your earnings per sale after commission. If the answer is weak, we say so. A marketplace built on a shaky liquidity plan is the wrong project.
Split settlement on Razorpay Route or Cashfree, the commission engine, TCS and invoices for each vendor. This is the money flow that follows the rules and that everything else needs, so we build and test it first.
The vendor dashboard, sign-up and checks on one side. Search, multi-vendor cart and checkout on the other. Both are built on the real settlement engine, not a fake one.
Return and dispute steps, ONDC connection where it fits, and a small launch in one field with tracking, so you can watch liquidity actually grow.
A framework that handles complex order steps and money movement, with search and queues so it can grow.
These are build and accuracy standards we follow on every marketplace. They are not promises about how fast your platform will grow. Money movement has to be right every single time, so we are strictest here. A settlement that is off by a rupee is a vendor who no longer trusts you.
Talk about your marketplaceEvery split matches the order, the commission rule and the TCS behind it
Through a licensed payment company, every vendor payout can be traced from start to finish
Collected, deposited and added into GSTR-8 with no manual step
Settlement and payout jobs are safe to repeat and are queued, so a slow provider never breaks checkout
Two-sided platforms with settlements that follow the rules and vendors who trust the commission math.
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Tell us your category, which side you will seed first and your commission model. A senior architect replies within one business day with the scope, how the payment rules apply and a price. You also get an honest view on whether you are ready to build or should test the idea first.
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ExploreLet's talk multi-vendor marketplace development
A senior engineer reads every enquiry. You'll get a real answer — scope, risk and a number — within one business day.