Why marketplaces are the ultimate cheat code

Have you ever dreamt of giving your community that killer feature that moves them from observer to influencer in a matter of weeks rather than years?

Have you ever dreamt of giving your community that killer feature that moves them from observer to influencer in a matter of weeks rather than years?

A self-sustaining marketplace might be just what you’re looking for.

In a simple Community Flywheel, we know that growth is about value creation, resourcing and platforming.

Creating a marketplace interest community gives them a good reason to create value, money.

The fundamentals are simple.

Create a place and space for your community to sell their creations to other community members.

It could be;

• Lightroom Presets to a photography community

• Cross stitch pattern to a crafting community

• Plans and cutting lists to a DIY community

• Courses to any community

So the idea is in place, but how would I go about implementing this?

Well, it turns out that moving taking a payment from one person, handling that transaction, sending the correct amount to the seller, while taking a cut for the marketplace operational costs is fairly complex.

That’s where Stripe Connect comes into play.

Stripe Connect is a popular product designed by the Stripe team to help process the flow of funds.

It requires bespoke integration into your platform, however once in place it works automagically!

We’ve been using Stripe Connect for years, and every time we implement it, I’m impressed with how the product handles the complexities.

When we built Love It Stitch It, we integrated Stripe Connect within phase one. This allowed funds to flow freely between the marketplace.

So, let’s dig into the features.

Streamlined Onboarding for Sellers

Stripe Connect simplifies the onboarding process for your community members who want to sell their products or services. With customisable onboarding flows, you can ensure a smooth and user-friendly experience, reducing barriers to entry and encouraging more members to participate.

Secure and Compliant Transactions

Handling payments in a marketplace can be daunting due to the complexities of compliance and security. Stripe Connect ensures that all transactions are secure, and it handles compliance with global regulations. This means your community can focus on creating and selling without worrying about the legal intricacies of payment processing.

Automated Payouts

One of the biggest challenges in managing a marketplace is ensuring that sellers get paid promptly and accurately. Stripe Connect offers automated payouts, so you can set up schedules that work for your community. Whether it's daily, weekly, or monthly payouts, Stripe makes it easy to manage.

Integrated Financial Reporting

Keeping track of all transactions and ensuring accurate financial reporting can be a nightmare for marketplace operators. Stripe Connect provides integrated financial reporting tools that give you a clear view of your marketplace's financial health. This transparency helps you make informed decisions and ensures that your community trusts the platform.

Scalable Infrastructure

As your community grows, your marketplace needs to scale with it. Stripe Connect is built to handle high volumes of transactions, so you don't have to worry about outgrowing your payment solution. Whether you're just starting out or already have a large community, Stripe can support your growth.

A marketplace doesn't just benefit individual sellers and buyers; it fosters a circular economy within your community.

Allowing members to buy and sell directly to each other creates a stickiness and loyalty to the community.

This article is based on the Platforming Community Live called; How to use Stripe Connect to build a Marketplace Community.