PSC BLOG

The key challenges when building a marketplace business

The key challenges when building a marketplace:

1. Technology. Your platform has to be built to onboard providers and customers with user registration, personal account, payment setting, and often communication functionality. This number of functions requires longer and more detailed development and specific customer/provider journey planning.

2. Leakage. One of the biggest challenges is avoiding leakage, which means you have to ensure all your providers and customers pay for your platform's services, especially if your monetization is tied to the commission of each transaction.

3. Marketing. You need both - providers and customers. Identify which group drives your revenue, and drive the opposite group. Customers need a product, so providers will come first. Also, double your marketing budget.

What are your challenges, marketplace founders? Comment and share below.