3 ways to build trust into retailer marketplaces
The news cycle is a powerful force in retail, and recently a major story has dominated headlines: Walmart’s online marketplace is reportedly facing a crisis of consumer trust after an investigation found fraudulent third-party sellers peddling counterfeit and potentially dangerous goods.
It’s a cautionary tale for any retailer, particularly those with an existing marketplace or those considering building one, about how quickly a brand’s hard-won reputation can be tarnished.
For retailers, trust is their most valuable asset, and it can be lost in a single transaction.
The problem, as reports have shown, is that when rapid growth is prioritized over proper vetting and quality control, the consumer pays the price. Fake beauty products, counterfeit supplements and stolen business identities all point to a fundamental issue: a platform that lacks the safeguards necessary to protect its customers.
But this isn't an inevitable side effect of marketplace growth. It's a solvable problem, and the solution lies not just in policies, but in the technology that enables those policies.
The right platform is designed to build trust from the ground up, providing the tools and capabilities to ensure a safe, secure environment for both buyers and sellers. It's a multi-layered approach that prioritizes a customer-first experience without sacrificing a business’s ability to scale.
Here's how the right technology can make all the difference:
Proactive vetting and onboarding
The first line of defense is a robust onboarding process.
The right marketplace platform provides the tools to thoroughly vet potential sellers, and it can enforce strict business rules and service level agreements (SLAs) from day one.
Instead of "approve, approve, approve" as one former Walmart employee described, the focus is on "vet, verify, approve."
With tools that automate and streamline these processes, you can scale your seller network without losing control over quality.
AI-powered data integrity and monitoring
Lax controls can lead to a messy catalog and fraudulent listings.
A modern marketplace platform uses AI to analyze and normalize product data across thousands of sellers.
It can offer suppliers significantly improved self-service functions, while also streamlining and automating data governance protocols. Enhanced dashboards provide real-time performance monitoring, allowing marketplace operators to enforce quality control and act quickly when a seller is out of compliance.
Financial and transactional security
Fraudulent transactions are a double blow: they scam your customer and put your business at risk.
Leading marketplace technologies closely partner with trusted payments and fraud prevention specialists to give their retailers the most secure, cloud-based platform possible.
Building on a foundation of trust
Ultimately, the goal of a marketplace is not just to sell more products; it’s to build a vibrant ecosystem that creates new value and fosters brand loyalty.
That can only happen when the foundation is built on trust.
The recent headlines are a stark reminder that while growth is critical, it can never come at the expense of your customer’s safety and confidence.
The right platform can help you grow without compromise, giving you the tools to provide a seamless, safe experience that reinforces your brand’s reputation.
To learn how leading retailers are building customer-first marketplaces, listen to our recent conversation with Nordstrom Senior Director of Marketplace Sarah King, here.
Watch on-demand: How Nordstrom is building a customer‑first marketplace with Mirakl
