Jordan Graison, Limonetik: Creating a marketplace involves taking on some challenges, some big ones. The first is managing payment, which must be reliable to a maximum
Having witnessed the success of Amazon, Uber, Airbnb and Deliveroo, many businesses now want to create their own marketplace equipped with a payment platform – a tempting but expensive business model, difficult to set up, and risky. Jordan Graison, Head of Global Sales at Limonetik, warns businesses not to underestimate the complexity of what should be considered a full-fledged business project.
In terms of opportunities, a company switching to an efficient marketplace model can hope to retain more buyers who are looking for the simplest possible buying experience, whether in terms of product search, transaction or delivery. A marketplace model that allows you to recruit multiple vendors and widen your product offering, will greatly increase customer satisfaction and the number of transactions, and generate more cash receipts. Finally, the marketplace model helps a business take off internationally. But beware – don't grow your business too fast!
Above all, remember that a marketplace is a strategic investment. We recommend starting on a limited scale before expanding and seeing big. You have to set realistic goals and constantly question your business model to make it profitable within a restricted perimeter before expanding it.
Secondly, it is essential to "challenge" your provider by asking, "Who is responsible for collecting payment?", "Do I have to change my ERP?", "Who is in charge of auditing the vendors?" and so forth. If the provider is unable to comply, costs may skyrocket. In other words, you should only trust companies with a proven track record who have been working for a long time with the players in the payment chain, with financial and banking institutions, with members of payment networks and technology partners (processors and/or payment gateways). A provider must have a perfect knowledge of the regulations and rules of compliance for incoming payments (from buyers) and outbound operations (from vendors).
Innovative solutions do exist that integrate all the components of the traditional payment value chain, but with value-added services such as account management, payment orchestration, marketplace fee management, and the rapid creation of vendor accounts. The provider must be able to take care of all stages of the project. A business must be able to focus on recruiting and promoting its marketplace to buyers and vendors.
About Jordan Graison
As a specialist in the global payment market, Jordan is responsible forthe development of Limonetik’s international sales. He started his career as a sales representative at AVIAREPS, after completing a degree in Korean studies at the Seoul National University in conjunction with the French National Institute for Oriental Languages and Civilizations in Paris.
About Limonetik
Limonetik is a full-service payment aggregator that offers, via a unique API connection, acceptance of more than 180 international payment methods and advanced services – from collection and settlement management to reconciliation and account management – to enable new payment experiences (marketplaces, omnichannel model).
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