Marketplaces

Learn how digital marketplaces can increase trust amongst sellers and buyers.

2424

What is a marketplace?

A marketplace is any platform that brings together sellers and buyers from the same or affiliated industries. Marketplaces offer a transparent venue for finding new trading partners without the need to go through an industry broker who adds a commission to each trade.

How can marketplaces increase trading trust?

Newer marketplaces which are completely platform based can offer a superior trading experience over working with a broker, but requires both the buyer and seller to investigate each other and establish new relationships continuously.

Marketplaces that can bring elements of trust in the form of payment guarantees, credit scores or financing gain a competitive advantage which brokers have trouble matching. If a financing partner is used, this partner can get a credit insurance policy to increase the amounts they are willing to finance.

If the marketplace decides it wants to offer credit insurance to its sellers, it will need to become a tied agent or broker in order to deliver the insurance without the intervention of the insurance company. An alternative option is to have the marketplace get an insurance policy with the credit insurance company and embed an API into their platform to enable insurance for all its sellers.