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Starting and Running a Marketplace

by nnyorker
4 replies
Hi folks...I am interested in starting and running a niche marketplace but am struggling with how to protect consumers and vendors. What is to stop Joe Schmoe from opening a shop and listing products and not shipping them to customers? On the flip side, what is to stop the customer from saying Joe Schmoe did not ship my product? Should I withhold commission payments for a certain time period? Any input is greatly appreciated. I have struggled with this for weeks!
Thanks!
#marketplace #running #starting
  • Profile picture of the author danieldesai
    Hey, I think the best thing for you to do would be to seek the advice of a paid consultant who has experience in these sort of matters.

    You're not likely to find the answer in a public forum as there are few people who have experience in running their own marketplace, and even if they did, this would entail a lot of details that deserve one-on-one attention.

    I wish you the best in your endeavors,
    Daniel

    P.S. while you may get some good advice here, you should still hire an experienced business consultant.
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    • Profile picture of the author Steve B
      Let's clarify this a little ... I don't think you really want to "run a marketplace" as you've stated.

      It sounds to me like you want to create a web site that allows other vendors to sell their niche products on your site, kind of like a farmers market where you gather an audience and charge vendors a fee to sell by promoting on your site. Is that correct?

      If I were contemplating this, I would make it very clear to both the vendors and the consumers that they are responsible for all customer service related activities of the products purchased, the transactions, the delivery etc. My only responsibility is bringing the vendors and consumers together. They each must do their own due diligence regarding product fit and utility, financial transactions between them, product deliver after purchase, etc.

      Why should these things be your responsibility when you have no control over them?

      That's my reason for suggesting you really don't want to "run a marketplace." You're just providing an online marketing venue for buyers and sellers in your niche.

      Steve
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      • Profile picture of the author nnyorker
        Yes...your observation is correct. Thanks!
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  • Profile picture of the author Trey Huynh
    You are dealing with the chicken and the egg problem. I heard many interviews on Mixergy before and starting a market place is the most difficult business to pull it off.

    That's being said - Have you tried to talk to anybody in the market and see where they hang out? Having feedback and a few signup by talking to people is a good place to start.
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