Online marketplaces seem to be all the rave right now. Essentially, a good marketplace gives buyers a range of choices in what they would like to buy, as well as giving sellers a variety of people to sell to. Entrepreneurs and freelancers in Nigeria have been able to circumvent the pitiless formal labor markets and gain a revenue opportunity through the gig economy by marketing their goods and services on online classifieds and listing marketplace platforms, signing up to drive on ride-hailing platforms or even listing unused spaces in their homes on home-sharing platforms. The low capital costs involved in joining such platforms lowers the barrier to entry and has made such platforms an attractive source of passive income (side hustle) or even a living wage in some cases.
What does it take to build a successful online marketplace?
Building a successful marketplace is however not a trivial task and there are several key factors to consider such as; supply of service providers/merchants, building demand for services/goods, transparency, building a sense of community, consistent quality in goods and services provided by the service providers and merchants and above all, Trust.
Ride/Home-sharing marketplaces have come up with their review and rating systems, while other platforms (product and service platforms) have turned to Escrow as a way of building trust among their users.
Escrow and the Online Marketplace
Escrow ensures that transactions are carried out according to the agreed terms and conditions. Vesicash Escrow makes transactions more secure by keeping the payment in a secure escrow account, from which it is released only when all of the terms of the agreement have been met as stated.
Vesicash, the leading provider of Escrow service technology in Nigeria, offers flexible escrow capability that can be integrated directly into marketplace platforms via an API, thereby serving as the trust component for these online marketplace platforms.
Once Vesicash has been integrated into a marketplace platform, the escrow process is straightforward and seamless.
- The buyer visits the online marketplace and selects the product or service they would like to pay for.
- Once the buyer and service provider/ seller agree to payment terms & fees, the buyer pays securely into Vesicash Escrow. Where the funds are held until the terms of the agreement have been met. Payment can be a one-off payment, which is made after the service/product has been delivered in full, or split into milestones (service-based orders), meaning that payment will be released in parts to the service provider as they meet specified milestones in the project.
A small transaction fee is charged on each transaction and thanks to our flexible fee schedule and revenue sharing arrangements, our charges are always reasonable.
Introducing Escrow into an online marketplace creates a competitive advantage by catering to the mainspring of a successful marketplace; Trust. Addressing the trust issue of your online marketplace with Vesicash Escrow allows you to focus on the other important building blocks of a successful marketplace.
Looking to integrate Vesicash Escrow into your online marketplace platform? Fill our API request form or send an email to email@example.com