Ask Yourself These Three Questions When Choosing an Online Marketplace

Bartosz Skwarczek, Founder and President of G2A.com, outlines three questions companies should ask when choosing an online marketplace. This article originally appeared in Insight Jam, an enterprise IT community that enables human conversation on AI.

So, you sell products from your brand website, but do you have an online marketplace presence? If the answer is no, consider this: a survey by PYMNTS and Adobe found that over 80 percent of customers were more satisfied buying new products from an online marketplace than the brand’s website or another retail site.

However, you might not have the resources to immediately drive sales, satisfy customers, and do everything seamlessly and securely after launch—many don’t. Professional online marketplaces enable and optimize operations from the start. They will set you up with the resources you need to succeed, including market data to increase reach, a cybersecurity framework, and reporting features to track sales metrics.

How do you find the right one for you? Here are a few questions you should ask yourself before transitioning your business into the marketplace.

Q1: Does the Online Marketplace Keep My Business and Customers Safe?

Cybersecurity should be the top consideration for online retailers when scaling their business. In 2023, the average amount of money lost by companies because of cyber-crime was $1.3 million. At a base level, you want to know the best systems are in place. This covers data encryption, multi-factor authentication, and a basic incident response plan.

But that’s just the bare minimum; AI upped the game. Make sure the online marketplace you’re considering uses AI as the first line of defense in its cybersecurity infrastructure to detect risks before they lead to harm. AI-powered cybersecurity can pick up on behavior that raises red flags, such as the sudden creation of a large number of new accounts in a short time, failed login attempts, multiple transactions from the same IP address, and increased malicious activity during peak traffic times.

These systems intervene before it’s too late by notifying employees and offering a course of action to keep financial and personal information safe. AI tools also learn from experiences to identify and respond to threats faster and more efficiently over time.

Having strong cybersecurity measures in place and “human eye” supervision ensures the protection of sensitive customer data and financial information while maintaining trust and safety in transactions.

Q2: Does the Online Marketplace Build Trust with Buyers?

You should feel confident that a marketplace of your choosing cares not only about the products and services you sell but also about maintaining trust with the end consumers. When buyers visit online marketplaces, they should know they are only purchasing from verified sellers. At G2A.COM, potential sellers must undergo a strict Anti-Money Laundering (AML) process, which requires them to send in all business-related documents to make sure they are 100 percent legitimate. No anonymous dealer is allowed to offer anything for sale, eliminating the fear of fraudulent sellers.

Online marketplaces should also implement anti-fraud solutions into the checkout process. Real-time monitoring and machine-learning algorithms can analyze transaction patterns, user behavior, and other risk factors during the payment process. Additionally, identity authentication procedures like digital fingerprinting, ID verification, and address verification reduce the risk of identity theft and attempts at fraudulent purchases.

Nearly half of online shoppers also say they are more likely to shop on a site that offers personalized recommendations. It’s not surprising. Helping buyers make better-informed decisions builds trust.

Make sure the marketplace has a strong recommendation engine fueled by interests, seasonality, browsing history, and recent purchases—especially if the inventory is large and has the potential to be overwhelming. This creates a personalized experience for shoppers by helping them discover relevant items easier and faster.

Q3: Does the Online Marketplace Partner with Global PSPs?

According to PayPal, one of the world’s leading payment service providers (PSPs), 59 percent of shoppers abandoned their shopping carts when their preferred payment method wasn’t available. If you’re selling products globally, make sure the online marketplace you’re considering partners with multiple global PSPs as well as local payment providers.

PSPs enhance the overall user experience for both buyers and sellers by offering buyers a diverse range of payment options while streamlining the seller’s onboarding process for specific local markets. They also help sellers process multiple currencies without additional transaction fees, helping them reach more customers at scale. For example, when G2A.COM integrated PayPal into its checkout process, we saw faster checkouts, increased user satisfaction, and boosted conversion rates.

Pairing up with a marketplace is a complex decision. When weighing your options, consider how the marketplace’s capabilities align with your long-term goals. Comparing different marketplaces’ security, capabilities, and reach, on top of analyzing other sellers’ reviews and experiences, is a great place to start. Remember, an online marketplace isn’t just another sales channel—it’s a strategic partner in your growth journey.