Marketplace launch checklist

Content:

• Marketplace launch checklist
• Organization of business processes
• Development of a contractual framework
• What are the risks in the operation of marketplaces?

Marketplaces are large marketplaces that allow suppliers to find new customers and consumers to meet new brands. Today it is one of the most promising e-commerce industries. Marketplaces offer products and services from different sellers, which attracts more buyers compared to a regular online store. In this article, you will find useful information on how to launch a marketplace.

Organization of business processes

The first thing to start with is drawing up a plan for organizing business processes. By law, buyers on the trading floor can be individuals and legal entities. The terms of the agreement between the parties to the transaction depend on this. You also need to decide on a list of suppliers and categories of goods that will be sold through your platform.

Acceptance and security of payments is an important issue to be resolved before the launch of the marketplace. To do this, you need to decide on the list of banks and payment systems through which payments will be made. Also, the owner of the trading platform should think over the commissions that will be paid by platform users for intermediary services, and their participation in settlements between sellers and buyers.

Depending on the policy of the platform, it can take on the functions of a mediator in resolving disputes between buyers and sellers, organize the delivery of orders, and offer participants work in a "safe deal" mode.

Development of a contractual framework 

The legal framework for the trading platform is drawn up taking into account business processes. For the marketplace to function, you need to prepare samples of contracts with suppliers, buyers, between the seller and the buyer. You should also develop an agreement on the use of TSA, a text of consent to the processing of personal data and a policy for processing PD.

It is important not only to develop, but also to correctly place documents on the site. On the main and other pages of the site, the visitor should see a link to the main documents that contain the rules for using the service. If the user leaves personal data, he must first familiarize himself with the PD processing policy and consent to the processing of information.

Upon acceptance, all contracts must be available by reference. If a legal entity must accept the contract, for security purposes, use a verification payment or an application for accession.

What are the risks in the operation of marketplaces?

Like any business, launching a marketplace comes with certain risks. Here are the main mistakes that can prevent a project from being successful:

• Product development without demand research: Due to the high competition, you need to make sure that your marketplace will be in demand by sellers and buyers.
• Wrongly chosen marketplace development technology: with a small budget, you can create a product based on a typical template, but this solution has fewer opportunities for customization. Individual development will cost much more, but it will be easier to develop and implement new functions in the future. On the other hand, if all funds are spent on development and implementation of new functions, then there will be no resources left to attract users due to lack of budget.  
• An inconvenient or insufficiently thought-out design of the service is guaranteed to reduce user interest in it.
• Like any other site, the marketplace can be subject to penalties and even blocking for violations. First of all, this concerns the sale of prohibited goods through the site. Also, claims may be brought against the owner of the marketplace if text and photo content is posted that violates the copyrights of third parties.

Paying taxes is one of the most pressing issues that arise when launching a marketplace. First of all, this concerns work with individuals who are registered as suppliers. With the correct drafting of the contract, the electronic platform is not a tax agent and does not pay personal income tax, since the marketplace becomes a source of payments, not income. As practice shows, on these points controversial issues often arise, since many definitions in the regulatory framework do not have a single interpretation. In the event of claims from the local authorities of the Federal Tax Service, it is advisable for the platform owner to seek help from a lawyer who will explain all the nuances. This will help avoid negative consequences for business reputation and protect the financial interests of the business.

The specialists of the law firm A4 Law Firm are ready to help you in resolving legal issues that arise during the launch and operation of marketplaces.