A marketplace or platform is not a webshop!
Marketplaces have their own specific dynamics. Potentially millions of ‘webshops’ can sell their products on these platforms. The sellers can be private individuals as well as companies that sell their goods through a marketplace. The marketplace is not the seller of the goods and therefore not the legitimate recipient of the proceeds. Therefore payment flows are very different and not as straightforward compared to webshops.
Payments at marketplaces
It's complicated, financially vulnerable and illegal to first payout all proceeds to the marketplace after which the marketplace passes on the final proceeds (with or without withholding a commission) to the ultimate seller. Moreover such a distribution of funds is not a core activity for a marketplace and regulators consider this a financial service, with all the associated obligations that come with it. A marketplace would then have to apply for a license to become a payment service provider itself. Working with a payment service provider specialized in marketplaces and platforms can help you overcome these barriers.
Are you interested in learning how you can effectively optimize payments on your marketplace? And you do want to learn how we've already done this successfully at leading marketplaces like eBay Kleinanzeigen, Gumtree and Marktplaats?
Book a meeting with us at the Marketplace conference.