How do peer-to-peer marketplaces ensure that they’re built to last? Such platforms offer unique opportunities for individuals to directly engage with one another, but many lack the necessary functions necessary to guarantee sustainable growth and a safe environment. What strategy and features should marketplaces implement if they want to be viable in the long-term?
Sustainable, trustworthy marketplace communities are made up of repeat users. They return to the marketplace multiple times to engage in transactions and have built up a transaction history that proves their trustworthiness. Repeat visitors also have an incentive to treat other users fairly since they want to return to the marketplace for future transactions.
Deemly allows users to view all available ratings and reviews about other individuals in a given sharing service. This way, marketplace participants can make informed decisions about who they want to engage in transactions. Our service is especially helpful for burgeoning startups, whose users have no ratings or reviews on the new platform. With Deemly, new marketplaces can establish a community because their user base has viewable behavioral histories from the start.
Marketplaces must utilize verifiable ratings & reviews systems in order to provide users with qualitative information about each other’s past behavior on the platform. This empowers users to make informed decisions about whether or not they want to participate in a transaction with a given individual. Using a trusted service for ratings and reviews instills confidence in users that the information they see is completely correct. A platform that prioritizes security for its rating system prevents fraudulent reviews.
Fat Lama, a UK-based marketplace, allows users to buy, sell, or rent things from one another. After a transaction, participants can leave each other a numerical rating and qualitative review based on their behavior and the item’s condition.
While it’s important for users to trust one another, many individuals want financial or legal guarantees for their assets. Marketplaces should also take steps to make their platforms compatible with insurance services in order to more fully protect their users. Platforms can underwrite insurance themselves and sell or provide it free to their users, or simply make their marketplace compatible with third-party insurance providers that users can purchase.
Developers should take care to make insurance onboarding as seamless as possible for the end user. This will make it easier for new users to try out the marketplace. Also, marketplaces that want to provide insurance might have to add an ID verification feature to their platform in order to comply with their country’s legal regulations. Insurance compatibility combined with a verifiable ratings and reviews systems provides both qualitative and quantitative protection for a marketplace’s users.
If your marketplace does not provide insurance, check out Guardhog or Safe Share – companies that specialize in providing insurance for the sharing economy. It’s important to find an insurance provider who can cover your users for any kind of transaction that your marketplace offers. Insurance providers who specialize in the sharing economy have developed bespoke insurance solutions to cover most kinds of transactions.
If an individual’s first experience with the sharing economy is positive, they are more likely to return for repeat participation. Widespread sustainable and safe marketplaces are necessary for bringing more people to sharing platforms and ensuring the sharing economy’s long-term growth. It’s up to platforms to build the necessary protections and incentives to create these environments for their users.
Deemly allows individuals in the sharing economy to utilize their overall online reputation as leverage to more easily participate in peer-to-peer marketplaces and services. People are more likely to engage with a person who has viewable transaction history from other, non-biased users. On the platform side, we help new sharing services establish their communities from the ground up by providing their users with viewable information about other participants from the get-go. Our services also help established platforms re-engage with an inactive user base, allowing them to compete against early-adopters of the platform.
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