Comment to 'Stripe/Payment Configuration'
  • There are three different approaches to setting up a Marketplace. 

    One is to collect all payments and then send out Vendor comissions after the site operator covers their transaction costs and profit margin (similar to codecanyon, creativemarket, UBER, and even Amazon). This method is highly controlled and generally leads to better sales, but creates most support overhead for the site operator. 

    Another approach is to allow vendors collect fees themselves and invoice for then separately for any market fees or charge a vendor subscription fee. This is similar to eBay, AirBNB, most real-estate sites, classified ads sites. This method is most liberal, but it complicates checkout due to multiple vendor accounts. It is the least cumbersome in terms of support for the site operator. 

    And finally the integrated way, using a purpose-built “marketplace” processing backend like Stripe Connect, where the marketplace operator has some control over the integrated vendor accounts, but they still can issue their own refunds, manage payments and withdrawals via Stripe dorectly and be somewhat containerised from each other. This method is perhaps most robust, but the main drawback is international adoption. There is no one system that would allow vendors from most countries to open marketplace suaccounts. Often vendors from Eastern Europe, Middle East, Africa and Asia are cut off. Depending on your geographical targeting t may be a deal breaker. 

    We want to cover most of the available scenarios, and Stripe Connect module is already available for custom configurations. Note, that it’s not an out-of-the-box setup - each marketplace idea needs to be assessed and configured depending on specific qualities.