Two-Sided Platforms

Two sides, different needs

Buyers and sellers want opposite things and need entirely different interfaces. Building one and adapting it for the other produces something that serves neither well.

The technical build is the smaller half. Getting both sides onto the platform, and keeping them there, is the actual business problem.

What a marketplace needs beyond an ordinary application

1. Payment splitting — taking money and paying out, with a commission
2. Onboarding and verification for sellers
3. Trust mechanisms — reviews, verification, dispute resolution
4. Dispute handling, which will be needed
5. Moderation of listings and behaviour

Payments are the regulated part

• Holding funds on behalf of others may be regulated in your jurisdiction
• Use a payment provider with marketplace capability rather than building it
• Handle refunds, chargebacks and payout reversals explicitly
• Keep a complete financial audit trail
• Take advice before building anything that holds money

Trust is the product

A marketplace works when both sides believe the other will behave. Reviews, verification, clear policies and visible dispute resolution are what create that belief.

Those mechanisms need designing before launch, because retrofitting trust into a platform that has already had a bad experience is considerably harder.

The cold start problem

A marketplace with no sellers is useless to buyers and vice versa. Nothing in the software solves that.

Frequently asked questions