C2C eCommerce Marketplaces
Another example of a checkout that may need to be customized for a particular client is a C2C eCommerce marketplace. Many of our marketplace clients work in industries and regions that may be higher-risk than traditional eCommerce marketplaces might otherwise face, and as a result they need a way to enable some form of escrow-based payment.
This type of payment isn’t as simple as putting in a credit card or some other traditional payment. It may include detailed steps where the seller completes the fulfillment of an item but doesn't receive payment for the fulfillment until the buyer confirms receipt. The third-party (the marketplace) is essentially arbitrating between the buyer and seller and takes a cut of the profits. If needed, it resolves any concerns or issues.
How does this work specifically with consumer-to-consumer businesses? Someone goes through a traditional website checkout where they pay by credit card or check. Such a consumer-to-consumer website most likely advertises the escrow aspect as a strength of the marketplace business model. It’s at this point that the escrow idea moves from a branding idea to an integrated part of the eCommerce checkout process. The website checkout takes the payment information, but instead of processing it and paying the seller, it authorizes the payment and captures it in an escrow account. The customer is made very aware of the steps that are going to take place before the transaction. A sample order of steps could be:
- Seller uses the website checkout
- Seller fulfills shipment
- Seller (via the marketplace) provides shipping information
- Buyer confirms receipt of the item
- Buyer confirms that the item is problem-free
- Marketplace takes their cut as arbitrator and pays the seller by releasing the funds in escrow.
- Marketplace closes the order
The need for escrow can be region-specific, so you may want to only enable this for certain regions or only enable it for certain products. The eCommerce checkout could even remove the escrow rule for marketplace sellers who have a certain level of review or credibility within the market.
The idea of being able to have this dynamic adjustment during the checkout process allows a checkout developer such as Clarity to incorporate many variations in the cart based on the situation. The primary takeaway is that, during a C2C website checkout, there can be many automatic steps that the user would have to complete manually in the past.