Home topics technology Small Business Tech Small Business How to build and scale an online marketplace Mac Wang September 7, 2018 Think about the last time you ordered a meal to be delivered, or a ride home from work. Chances are you’ve just used one of the many multi-sided online marketplaces that are transforming our everyday lives. International marketplaces like Deliveroo have launched with huge success in Australia, while home-grown marketplaces like Catch.com.au and 99designs are gaining popularity. In a study of hundreds of marketplaces running on Stripe over a two-year period, we found that the revenue of a typical marketplace increased by nearly 300 percent year over year. With progress this strong, online marketplaces of all sizes are going to play a role in nudging global economic growth. In fact, independent research from Nielsen found that half of Australians (50 per cent) prefer using online marketplaces for transportation, hospitality, and food delivery/subscription instead of going to taxis, hotels, restaurants directly. But building a marketplace is no mean feat. Not only do you need to manage the balance between sellers and buyers (or supply and demand), you also have to manage the complex flow of funds and products — a challenge that increases as a marketplace scales. Make it easy for sellers By definition, marketplaces have multiple, distinct sets of users — typically buyers and sellers, but sometimes additional groups like couriers as well. For a business model that requires carefully balancing competing sets of priorities and expectations, where should