How to Build a Scalable Multivendor Marketplace with Dokan: A Practical Guide for Beginners

Building a scalable multivendor marketplace doesn’t have to feel overwhelming. With the right tools, you can create a platform where multiple sellers list their products, manage their stores, and serve customers from one shared space. It’s the same idea behind marketplaces like Amazon, Etsy, or eBay. Each vendor runs their own shop, while you manage everything from a single dashboard.

The best part is, you don’t need coding skills or a large development team to make this happen. WordPress, combined with a powerful multivendor plugin like Dokan, gives you everything you need to build, manage, and grow a marketplace that can scale over time.

With Dokan, you can control commissions, vendor capabilities, payments, shipping settings, and the overall customer experience. Vendors get their own dashboards, you manage the backend, and the whole system stays organized as your marketplace grows.

In this practical guide, we’ll show you how to set up a scalable multivendor marketplace step by step. You’ll learn how to install Dokan, choose a suitable theme, onboard vendors, add products, and optimize your store for long-term growth.

Let’s dive in and get started.

Why Should You Create a Marketplace in 2025

Online marketplaces are growing faster than ever, creating huge opportunities for new and established businesses. According to a forecast, by 2027, global retail e-commerce sales could rise to nearly US$8 trillion. This growth reflects how strongly consumers now prefer platforms where they can find a wide range of products and services in one place.

Why Buyers Prefer Marketplaces

Shoppers love marketplaces because they make the buying experience easier.

• Variety and Convenience: They can explore multiple sellers, compare prices, and make better choices without jumping between different websites.
• Trust and Security: Most marketplaces offer secure payments, buyer protection, and customer reviews, which help people feel safe while shopping online.
• Competitive Pricing: Since several sellers compete in the same space, buyers often discover better deals and more affordable options.

Benefits for Sellers

Joining a marketplace also makes life easier for sellers starting out in eCommerce.

• Lower Costs: They don’t have to invest in building or maintaining their own online store.
• Instant Audience: Marketplaces already attract visitors, so sellers get access to customers from day one.
• Built-in Tools: Everything from payments and inventory to shipping and marketing is available in one place, helping sellers run their business smoothly.

How to Build an Online Marketplace with Dokan in 5 Easy Steps

You can launch a full-featured online marketplace fast with the Dokan multivendor plugin. Below we’ll walk you through each step. First, a quick look at Dokan.

Dokan is a top WordPress plugin for multivendor marketplaces. It has over 50,000 active installs on WordPress.org and more than 40 modules that add useful features. That makes it a popular choice for people building marketplaces.

Dokan runs on top of WooCommerce. That means it works with WooCommerce themes and extensions right away. You will need very little custom code to start.

Ready to build?
Let’s set up your marketplace with Dokan, step by step.

Step 1: Activate Dokan to Create Your Multivendor Marketplace

We are assuming you have already set up and configured WooCommerce on your WordPress website. 

Now, installing Dokan multivendor is as simple as installing any other WordPress plugin.

You can install the plugin from the WordPress dashboard by,

• Navigating to Admin Dashboard -> Plugin-> Add New-> Click the search
• Type Dokan -> Install -> Activate.

Dokan Multivendor will also provide a setup wizard that will help you easily set up your marketplace. Configuring Dokan is very easy by using its own Wizard.

Step 2: Install a Dokan Compatible Theme

Once you’ve installed the Dokan multivendor plugin, the next step is to choose a compatible theme. Any theme that works with WooCommerce will also work with Dokan.

For convenience, you can use Dokan’s own theme, Dokani, which is built specifically for marketplaces.

To install a theme, go to WP Admin → Appearance → Themes and select a theme that is Dokan-compatible.

If you choose any other theme, then you will need to customize the theme to make it compatible with your marketplace.

Step 3: Configure Dokan General Settings

After installing and activating the Dokan multivendor plugin, the next step is to configure the basic settings. You can find all the settings options in WP Admin → Dokan → Settings.

Here, you can:

• Set up your store’s terms and conditions
• Create store categories, allowing vendors to add different categories to their stores
• Enable payment gateways
• Configure withdrawal methods 
• Allow vendors to upload new products
• Create new product tags
• Set product status
• Configure selling options
• Set a privacy policy

Make sure to click Save Changes after configuring your settings, or your updates won’t be applied.

You also need to adjust your permalink settings to prevent 404 errors on some pages. Go to WP Admin → Settings → Permalinks → Product Permalinks, select the Custom Base option, and enter /product in the box. This will ensure your product pages have the correct URL structure.

You also need to set your commission rate. To do this, go to WP Admin Dashboard → Dokan → Settings → Selling Options → Admin Commission.

You’ll have different options to set the commission as a percentage or a fixed amount. Dokan supports various types of vendor commissions, giving you flexibility in how you charge sellers.

Enable the Payment Gateways

The Dokan multivendor plugin works with all WooCommerce-compatible payment gateways, giving you plenty of options to handle transactions on your marketplace.

With the free version of Dokan, you can use basic payment methods like check payments, bank transfers, and cash on delivery. To accept more advanced payments, including credit and debit cards, you can install the WooPayments plugin, which supports a wide range of payment options.

However, if you want your marketplace to support adaptive payment solutions like Stripe Connect and MOIP you need to install the Dokan Pro version.

Enable Withdraw Methods for Vendors

A reliable withdrawal system is essential for any online marketplace, and the Dokan multivendor plugin makes it simple to manage.

To set it up, go to WP Admin → Dokan → Settings → Withdraw Options. Here, you can choose the withdrawal method and set the minimum balance a vendor must have before requesting a payout. This ensures vendors can access their earnings smoothly and efficiently.

Step 4: Upload Products and Set Up Admin Shop If You Want

This step is optional, but if you want to earn extra income, you can set up your own store on the marketplace.

To start, go to Dokan → Vendors and enable selling by toggling the button. Then, add your products by going to WordPress Backend → Products → Add New. This lets you list your items on the marketplace just like any other vendor.

And to upload products from the frontend, navigate to WordPress Dashboard -> Vendor Dashboard -> Products-> Add New. Your registered vendors will upload products this way.

Vendors can add functionalities like shipping, taxes, and product attributes from the product creation form.

Step 5: Allow Vendors to Sign up to Your Marketplace

Now that you have added all the features to your marketplace, you can invite vendors to sign up.

Dokan multivendor has a default registration form that will help vendors to sign up to your marketplace.

You can create custom registration forms with the fields you need for your marketplace.

To let vendors start selling, go to Dokan → Vendors and toggle the selling status on.

If you want vendors to add products, go to Dokan → Settings → Selling Options and enable New Vendor Product Upload. This allows vendors to upload and manage their products on your marketplace.

Vendors can upload their products from the front end, as we’ve shown above for the admin shop.

Now you are ready to sell!

How to Promote Your Marketplace

Promoting your marketplace is just as important as building it. Even a feature-packed platform won’t grow without strong visibility. A solid promotion plan helps you bring in buyers, onboard vendors, and build a brand people trust.

With marketplaces booming in 2025, using multiple marketing channels is key to growing faster and standing out.

Social Media

Stay active on Facebook, Instagram, X (Twitter), and LinkedIn. Post 4–5 times a week. Share product highlights, vendor stories, updates, and behind-the-scenes content. Use reels, carousels, and short videos to boost engagement. Track your performance through tools like Meta Business Suite or Hootsuite.

Content Marketing

Publish 1–2 high-quality blog posts each week based on your niche. Try topics like “Best-Selling Products of Summer 2025” or “How to Find Trusted Sellers Online.”
Build a helpful knowledge base and optimize your articles for SEO. Watch your traffic using Google Analytics. Repurpose each blog into infographics, newsletters, or short videos. Consistent, helpful content builds long-term trust.

Email Marketing

Send newsletters once or twice a week featuring new arrivals, vendor highlights, or exclusive offers. Segment your audience by interest or behavior for better engagement.
Use automation for welcome emails, abandoned carts, and promotions. Track open rates, click-throughs, and conversions to improve each campaign.

Paid Ads

Run ads on Google, Facebook, and Instagram to reach new buyers. Start small and test different creatives. Focus on retargeting visitors who didn’t buy.
Use custom and lookalike audiences for better accuracy. Monitor clicks, sales, and ROI, and keep refining your campaigns.

Influencer Marketing

Partner with micro and mid-tier influencers (5K–50K followers) in your niche. Ask them to review products, create unboxing videos, or share authentic posts.
Use UTM links to track results. Run campaigns during seasonal offers or sale events to boost engagement and conversions.

Affiliate Partnerships

Invite bloggers and niche websites to promote your marketplace as affiliates. Offer them a commission for every sale they drive.
Use affiliate tracking tools to monitor performance and reward top partners so they stay motivated.

Community & Event Marketing

Join online forums, Facebook groups, and local communities related to your niche.
Host webinars or sponsor small events to showcase your vendors and provide helpful insights. Building real connections strengthens your reputation and builds long-term trust.

Start Your Marketplace Today

Building a successful online marketplace with WordPress is now easier than ever. With Dokan, you can create a platform where vendors sell, customers shop, and your brand grows—without writing any code.

The eCommerce space is expanding fast, and there’s still plenty of opportunity in every niche. Starting today helps you build trust early, attract your first vendors, and grow a loyal base of customers over time.

Your marketplace could become the leading destination in your niche. Start small, keep improving, and stay consistent. The sooner you launch, the faster you’ll grow.