Creating a marketplace: pitfalls that are not visible at the start
Launching your own marketplace seems like a logical step for many companies in the age of digital commerce. However, the appearance of simplicity hides a lot of technical and business processes that can become real challenges for an unprepared business. In this article, we will look at the main pitfalls of creating a marketplace and share our practical experience of implementing a complex project for a Moldovan company.
Hidden difficulties of a marketplace
1. Financial transactions and escrow service
One of the main problems not seen at the start is the need to regulate the financial system. The marketplace should not just accept payments, but should:
- Hold funds until confirmation of receipt of goods
- Automatically calculate commissions for each merchant
- Process returns and disputes
- Generate financial reporting for partners
- Compliance with financial regulations.
2. Multi-level logistics
Simple seller-to-buyer delivery only works for small volumes. A true marketplace requires:
- Integration with multiple delivery services
- Systems to consolidate orders in sorting centres
- Automatic calculation of shipping costs for combined orders
- Tracking of goods at all stages of the logistics chain
3. Quality management and moderation
Controlling the quality of products and sellers is not a one-time task, but an ongoing process that requires:
- Automatic systems for checking uploaded content
- Algorithms for detecting fraudulent schemes
- Rating and feedback systems with protection against scamming
- Procedures for resolving disputes between buyers and sellers
- Moderation of sellers' content as an additional service
Case: Complex Marketplace for a Moldovan company
Myself created full-functional marketplace for large trading company in Moldovan. The project combined the best practices of the world's leading marketplaces with maximum automation of business processes.
Partner interaction system
The key feature of the platform was a complex system of work with partner-sellers:
Internal communications: A closed chat system was created for each partner with technical support and managers. All enquiries are automatically categorised and directed to the appropriate departments with SLAs set.
Financial transparency: The platform calculates commissions in real time, holds funds under escrow rules and generates detailed reports. Partners see their financial statistics in a personal cabinet without the need to contact managers.
Automatic payouts: The system independently transfers funds to partners according to customised rules - weekly, when a certain amount is reached, or on an individual schedule.
Complex logistic system
The logistic scheme includes three levels:
- Partner → Sorting Centre: Goods from different sellers are consolidated in regional hubs
- Sorting Centre → Regional Warehouses: Optimisation of delivery routes by region
- Last Mile: Delivery to the customer via partner network of couriers
The system automatically determines optimal routes, calculates delivery costs based on order consolidation, and provides customers with accurate delivery time windows.
Automisation of the order process
There is no call centre involvement in standard operations.
On the customer side:
- Automatic order confirmation via SMS/email
- System of status notifications at every stage
- Ability to modify the order before dispatch
- Automatic processing of returns for standard reasons
Seller side:
- Automatic notification of new orders
- One-click availability confirmation system
- Ability to confirm or modify an order
- Automatic generation of documents for dispatch
- Integration with warehouse management systems
Deep integration with accounting systems
One of the most challenging aspects was integration with partners' existing ERP systems. We have created a universal API adapter which provides:
- Real-time synchronisation of product balances
- Automatic price updates according to partners' price lists
- Transmission of order data to vendors' accounting systems
- Consolidated reporting for the parent company
Technological architecture
The platform is built in such a way that it provides:
- High load capacity (up to 10,000 simultaneous users)
- Independent scaling of individual modules
- System resilience
- Ability to quickly introduce new features
Key Lessons
- Plan for automation from day one. Retrospectively implementing automated processes is significantly more expensive and complex.
- Invest in quality integration. Siloed systems create more problems than they solve.
- Pay special attention to UX for partners. The usability of sellers directly affects the quality of offers on the platform.
- Lay down scalability. What works for 10 partners may not work for 100.
- Build detailed analytics from day one. Data is the basis for optimising all processes.
Do you need your own marketplace? We can help!
Our team specialises in creating complex marketplaces with deep automation of business processes.
What we offer:
- Full development cycle - from concept to launch and support
- Proven solutions - we use the experience of the world's leading marketplaces
- Maximum automation - minimise operator involvement in routine processes
- Deep integration - connect any external systems and services
- Scalable architecture - ready to grow from day one
Connect with us for a consultation on your project!