All About Marketplaces

Today, I’d like to share some thoughts about marketplaces. You know, those platforms you see advertised all over Google that have tons of stuff for sale - everything you could ever need. When you think of a marketplace, you no doubt think of TradeMe, TheMarket, Facebook, Temu, eBay, and Amazon. These destinations can be fantastic places to shop because they offer so much variety, but there are a few things you should keep an eye out for to ensure you’re shopping safely and getting exactly what you ordered.

First, what is a marketplace? Basically, it’s a single platform that brings buyers and sellers together. These sellers can be individuals (selling unwanted gifts on TradeMe or Facebook Marketplace) or professional sellers who build their store presence on platforms like eBay and Amazon.

Why do you need to know this? Well, marketplaces are the primary method of shopping online these days. Almost everything you see for sale online is sold through one of the major marketplaces. These issues affect us all, so hopefully, you’ll get some useful tips :)

Beware of scams - We’ve all heard stories of people selling something on Facebook Marketplace and having someone “purchase” their item by sending a bank screenshot, only for the money to never show up in their account. Even if the money does show up, there’s also the old “chargeback scam,” where the buyer later tells their bank they never received the item, resulting in the seller losing both the item and the money. Unfortunately, we Kiwis tend to be quite trusting and like to think this kind of stuff happens only in America or Australia, but make no mistake, it happens here…a lot. If you’re buying or selling something on Facebook Marketplace specifically, make sure you’re meeting up in person and exchanging cash. TradeMe and eBay are much safer places to sell if you’re listing individual items - they handle the payments, verify the buyer, and handle all disputes if any arise.

Know if the seller is legit - Lots of marketplaces have good reviews themselves, but many individual sellers do not. Marketplaces put a lot of effort into making sure their reviews look good, often incentivizing customers to leave positive reviews through discounts, credits, etc. So, when you’re looking for a product, identify who the real seller is and Google them. Read their reviews on Trustpilot, Google, and anywhere else you can find them. See if they’ve got a website. Message their live chat. Look for common themes in negative reviews, like not having the goods in stock or poor-quality products. If you can’t find them anywhere on Google, it’s probably best to avoid them. These sellers are often shell companies based overseas, new names being used by sellers who have received such bad feedback they can’t sell under their own brand anymore, or just outright scammers. Also, remember that everyone has bad days and problems do happen - this is why context is important. It’s how the sellers deal with the problems that really matters.

Lowest price doesn’t always mean the best value - What we mean by this is that when it comes to marketplaces, there is an algorithm behind the scenes that determines which seller gets shown where. All marketplaces have them, and most sellers know how to work them. A good marketplace will promote good sellers who consistently do the right thing (fast shipping, good customer service, accurate descriptions, etc.), while not-so-good ones will promote only the lowest price. The only way for a not-so-good seller to succeed on a good marketplace is by having the lowest price. This is why it’s extra important to do your research before purchasing and always consider if it’s worth saving a few dollars in exchange for potentially weeks or months of hassle.

Finally, marketplaces can be a great way to find deals and unique items, but it’s essential to approach them with caution. By being aware of scams, verifying the legitimacy of sellers, and understanding that the lowest price isn’t always the best value, you can shop more safely and confidently. Always do your research, and when in doubt, trust your instincts.

Happy shopping!