Making it easy for customers to pay, purchase and get goods delivered is an essential part of building a successful marketplace. Many businesses and individuals face the challenges of selecting the right payment and shipment gateways.
In this article, we are going to list some of the most powerful and favored solutions for establishing payments and shipments in your marketplace and give you some advice on these issues. Let’s start with the payments as their convenience is crucial for an online shopping experience.
How to choose a payment provider
If you are trying to assemble your marketplace payment solution, you have got a pile of concerns to be aware of and a number of providers to choose from. Speaking of concerns, we mean these: cost, funds flow, geographical coverage, invoicing, SSL, taxation, API and documentation, credibility. Considering possible cost, you have to think how much it costs for you to collect and pay out. Contemplating funds flow, become aware of all different approaches, but at first, define, if the money goes to you or directly to payment providers.
Then, take into consideration the geographical coverage by asking yourself whether you need to make payouts overseas or at home. Turning to invoicing, we recommend you to think whether you need to send an invoice to your customers and whether this feature is served by your provider for free or you have to come up with an integration of your provider and 3rd party invoicing system. Planning to store and save payment details, you are called for a SSL Certificate purchase. Next thing to consider is a taxation arrangement with your providers and generation of the tax forms. What is also important is to assure the solid and easy to integrate API & documentation, and the ability to reach out to support. Finally, you have to assure the credibility of your provider.
Now, it is time to take a quick look at a few providers we want you to know about. In fact, there are much more out there, but today we cover the essential ones.
Stripe is rather powerful and flexible tool for e-commerce business that became famous for easy-to-accept card payments. Stripe is handy for on-demand marketplaces, subscription services, e-commerce stores and even crowdfunding platforms/
PayPal with Braintree Payments
PayPal is an original peer to peer payment network, which provides efficient solutions for splitting payments between merchants and providers, including Braintree Payments. The payment methods of Braintree include bank cards, PayPal, Venmo, Apple Pay, Android Pay, Bitcoin and much more.
Dwolla is a powerful solution for marketplace payouts and transfers. It offers a full-stack ACH payments solution that is free of a per-transaction fee and can be easily integrated. What is more, Dwolla MassPay tool allows initiating numerous payments to customers immediately.
Hyperwallet is one of the leading payout platforms for collaborative economy and marketplaces. It facilitates international AHC payments to the providers. With its comprehensive suite of REST APIs, it is possible to seamlessly merge Hyperwallet’s payment technology into the native application and expand the local payout services to sellers quickly, and efficiently.
Choosing a shipping provider
Shipping of goods is a real headache for many merchants and e-commerce owners. The main criteria for choosing a shipment provider are basically the time – it should perform fast, and the cost – the cheaper the better. Overpriced shipping is a primary cause why shopping carts are abandoned.
Before choosing a shipping provider you have to think of the target market. Is it local or international? What do you know about its quantity and correlation? Ensure that your provider ships different types of products (expensive, fragile, flammable etc.) and provides an insurance for accidents. Check whether transit times offered by your provider matches customer expectations. Consider the real-time shipping calculators that integrate with the biggest shipping providers. Is it bundled with your e-commerce platform or you have to integrate with a third-party service? Your shipping provider should also process returned merchandise and accommodate additional shipping volume.
Let us give you some examples of popular shipping providers for marketplaces.
Goshippo is an e-commerce shipping API for marketplaces that connects you with multiple carriers, provides discounted shipping labels, tracks parcels and more. It is good for international shipping and offers high volume discounts.
Uber Rush is an on-demand merchant delivery network that can be easily integrated with marketplace platforms such as Shopify, Clover, Bigcommerce and more. It claims to have low delivery costs without overhead, offers real-time tracking of parcels.
Tookan is a highly customizable solution built on module-based flexible architecture. It accommodates on-demand deliveries. With Tookan you can easily schedule, dispatch new tasks to agents and track them in real-time.
These were some of our favorite solutions for payments and shipping that we think can be of any help for your marketplace business. Please, share with us our insights, thoughts and experiences on this topic.