Yes, WooCommerce can run a full multi-vendor marketplace with the right plugin layered on top, but you need to plan the core mechanics before picking one:
Vendor onboarding: how sellers register, get approved, and set up their store profile.
Commission structure: flat fee, percentage per sale, or a hybrid, and whether it varies by category.
Payouts: automatic or manual, and which payment methods you’ll support for sending vendors their earnings.
Product and order management: whether vendors manage their own inventory, shipping, and order status, or you handle parts of it centrally.
Storefronts: whether each vendor gets their own branded page within your site.
Dispute and refund handling: who’s responsible when a customer wants a refund on a vendor’s product.