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Vendors · Commission · Split settlements

Multi-Vendor Marketplace Development

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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  • Vendor sign-up, KYC and catalogue checks
  • Commission engine with per-category and per-vendor rules
  • Split settlements via Razorpay Route or Cashfree Easy Split
  • GST TCS at 1% collected, deposited and filed on GSTR-8
Why a marketplace is different

A two-sided platform, not a bigger shop.

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 architect
1TCS
Collected at source

GST 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.

Split
Settlements, compliant

Razorpay Route or Cashfree Easy Split pay each vendor and your commission when the payment is taken, through a licensed payment company.

2-sided
Supply and demand

Vendor sign-up, checks and payouts on one side. Search, cart and checkout on the other.

ONDC
Network-ready

Built to join the Open Network for Digital Commerce, so your buyers are not tied to a single platform.

How we actually build a multi-vendor marketplace

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.

Settlement is the hardest problem, and a compliance problem

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.

The commission engine is where your business model lives

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.

Moderation, disputes and returns are the operational spine

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.

Liquidity is a business problem we refuse to ignore

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.

The honest part

When to build a marketplace — and when not to yet.

  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.
What we build

The modules a real marketplace needs.

The storefront is a quarter of it. These are the parts that make it a two-sided business rather than a demo.

Vendor onboarding & KYC

Sign-up by the vendor with document KYC, bank checks for payouts, and an approval step so you control who sells on your platform.

Vendor dashboard

A back office for sellers to manage catalogue, stock, orders, returns, earnings and settlement statements — the tool vendors use every day.

Catalogue moderation

A queue where listings are checked before they go live, with rules and flags that keep fake and banned items off the platform.

Commission engine

Commission rules per category, per vendor and per offer, kept as settings and worked out in the open so vendors trust the math.

Split settlements

Razorpay Route or Cashfree Easy Split pays each vendor their share minus commission when the payment is taken, through a licensed payment company.

Multi-vendor cart & orders

One cart with items from several vendors, split into an order for each vendor, while the buyer sees a single simple checkout.

Disputes & returns

Return and refund steps that undo an already-paid settlement correctly, with vendor fines and a record of how each case ended.

Ratings & trust

Buyer reviews, vendor ratings and scores that bring good sellers to the top and push down the ones who let buyers down.

ONDC integration

Joining the Open Network for Digital Commerce so your catalogue and buyers reach beyond your own platform.

The money flow

Follow one order through the platform.

One payment, split at capture

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.

Commission, computed and shown

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.

TCS, collected and filed

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.

Per-vendor invoicing

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.

A return runs the flow backwards

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.

India, specifically

The compliance a marketplace operator carries.

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.

  • GST TCS under Section 52

    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.

  • You cannot hold vendor funds

    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.

  • Vendor KYC and verification

    Document KYC and bank checks at sign-up, both to allow payouts that follow the rules and to keep bad actors off the platform.

  • Per-vendor GST invoicing

    Each vendor bills the buyer for their part. Your commission is a taxable service that you bill to the vendor. Both are made automatically.

  • ONDC participation

    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.

  • WhatsApp for both sides

    Order updates for buyers, and dispatch, payout and review alerts for vendors, on the channel both sides really read.

How we ship it

Liquidity question first, settlement engine second.

We start with the business risk, then build the two hardest technical parts before the nice-looking ones.

  1. 01

    Interrogate the model

    Weeks 1–3

    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.

  2. 02

    Build the settlement spine

    Weeks 3–10

    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.

  3. 03

    Vendor and buyer experiences

    Weeks 9–18

    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.

  4. 04

    Disputes, ONDC and launch narrow

    Weeks 16–24

    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.

The stack

What a marketplace is built on.

A framework that handles complex order steps and money movement, with search and queues so it can grow.

Laravel
PHP 8.3
PostgreSQL
Redis
Our release bar

What we hold a marketplace to.

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 marketplace
0
Mis-settled orders

Every split matches the order, the commission rule and the TCS behind it

100%
Payouts auditable

Through a licensed payment company, every vendor payout can be traced from start to finish

1TCS
Handled automatically

Collected, deposited and added into GSTR-8 with no manual step

Async
Money on queues

Settlement and payout jobs are safe to repeat and are queued, so a slow provider never breaks checkout

FAQ

Marketplace questions, answered straight.

Still have a question?

A store sells your inventory; a marketplace lets many independent vendors sell theirs, and you take a commission for connecting them to buyers. That single difference cascades into a completely different system: vendor onboarding and KYC, a vendor dashboard, catalogue moderation, a commission engine, order splitting when a cart holds items from several vendors, and — the hard part — settlement, paying each vendor their share minus commission, correctly and on time. It is a two-sided platform, not a bigger shop, and building it as if it were a bigger shop is the most common and most expensive mistake.

This is the part founders most underestimate. When a buyer pays for a cart from three vendors, that money cannot simply land in your account to be paid out manually — that makes you an unlicensed payment intermediary, and holding others' funds has real RBI implications. The correct pattern is a split-settlement product from a licensed payment aggregator: Razorpay Route or Cashfree Easy Split split a single payment across vendor accounts and your commission at capture, with the aggregator handling the regulated fund flow. We build on those rails so settlements are automatic, auditable and compliant, not a manual reconciliation nightmare that also carries regulatory risk.

A marketplace is an e-commerce operator under GST, which brings Tax Collected at Source (TCS) under Section 52: you collect 1% (0.5% CGST + 0.5% SGST intra-state, or 1% IGST inter-state) on the net taxable value of supplies made through your platform, deposit it, and file the monthly GSTR-8; the vendor claims it as credit. On top of that, each vendor issues their own GST invoice for their portion, and your commission is a taxable service you invoice the vendor for. We build TCS calculation, GSTR-8 data, per-vendor invoicing and commission invoicing into the platform so it is automatic rather than a monthly crisis.

This is the real risk in any marketplace, and it is a business problem more than a technical one, so we will ask about it before we quote. A beautifully built marketplace with no liquidity is a failed marketplace. The teams that succeed usually solve one side first — seeding supply in a narrow category or geography, or bringing an existing buyer base — rather than launching broad and empty. We build to support that: vertical-first launch, frictionless vendor onboarding, and the metrics that tell you whether liquidity is forming. But we will be honest that the software is necessary and not sufficient.

For a genuine test of an idea, a marketplace extension on WooCommerce (Dokan) or similar can validate demand cheaply, and we will point you there rather than sell you a build you are not ready for. But those tools hit real ceilings on commission logic, settlement compliance, moderation and performance as vendor and order counts grow, and founders frequently outgrow them within a year. A custom marketplace on a proper framework is the right investment once the model is proven and the operational complexity — settlements, disputes, TCS, moderation — is load-bearing. We build both, and will tell you which stage you are at.

A focused MVP — vendor onboarding, catalogue, split-settlement payments, commission, order splitting and the buyer storefront — is typically 16 to 24 weeks from around INR 20,00,000. A full platform with sophisticated payout rules, disputes and returns, ONDC integration, a vendor mobile app and deep analytics runs 28 to 44 weeks and prices accordingly. The variable that moves the number most is settlement and payout complexity and the number of vendor and buyer workflows, which is exactly what we scope in a paid discovery before committing to a figure.

Have a marketplace idea and a real answer to liquidity?

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.

Let's talk multi-vendor marketplace development

Bring us the hard version of the problem.

A senior engineer reads every enquiry. You'll get a real answer — scope, risk and a number — within one business day.