Building Trust in Marketplaces: The Key to Success
In today’s digital landscape, trust is the currency that fuels the growth of marketplaces. Without it, customers are unlikely to choose your platform over competitors. Think about it – would you buy a car or a TV from a shady website that feels scammy? Probably not. In this article, we’ll explore the importance of trust in marketplaces and provide actionable tactics to build trust among your users.
The Trust Factor
Trust is essential for any business, but it’s even more critical for marketplaces. When purchasing from an established company, customers have buyer protection rights and know that the business is registered and accountable. However, when buying from individuals or small businesses, it’s harder to establish trust. The level of trust directly correlates with the gross merchandise value (GMV) you can generate from these marketplaces.
Tactics to Build Trust
To boost trust in your marketplace products, consider the following strategies:
Supply Verification
Verifying your supply side is a potent tactic to build trust. By vetting suppliers, you can vouch for their credibility and reliability. For example, Good Dog connects breeders with people wanting to buy puppies. To strengthen the supply side, Good Dog’s teams run a “responsible breeder” program, verifying breeders and offering contract templates and legal support to buyers.
Quantity of Reviews
The number of reviews a seller has is a key indicator of their legitimacy. Encourage users to leave reviews by reminding them, incentivizing them, or making it mandatory to transact in the future. Airbnb, for instance, requires users to leave a review before they can see the review left by the other party.
Quality of Reviews
One high-quality review is worth more than ten poorly written reviews. Guide users on what makes a good review, and encourage them to include pictures and detailed descriptions. Shef, a food ordering app, automatically attaches pictures of the ordered items to reviews, making it easier for potential customers to understand the review and trust the quality of the dish.
Promise of Protection
Promising protection for peer-to-peer transactions is a great step toward building trust. Allegro, a European peer-to-peer marketplace, explicitly states that if buyers don’t receive what they ordered, they’ll get their money back instantly and deal with the seller on their own.
Marketplace Reputation
A strong marketplace reputation establishes trust in the supply it provides. Get verified on external rating platforms like Trustpilot, and ensure high-quality reviews on that platform. Reach out to users who had an excellent experience and personally ask them to leave a review.
High-Quality Listings
The quality of your listings speaks to the quality of the seller. Ensure listings are well-crafted, and guide sellers on what to include to boost attractiveness. Optimize the page layout, offer services to improve listing quality, and verify high-ticket listings if necessary.
Conclusion
Building trust is crucial for growing marketplaces. By implementing these tactics, you can increase customer trust, leading to more transactions and a stronger reputation for your marketplace. Remember, trust is the foundation upon which successful marketplaces are built.