Retaining sellers, earners, and suppliers is half of the equation for online marketplace success. Providing fast and secure payouts ensure sellers remain reliable and loyal, giving your end-users stellar products and experiences. Better payments aid your providers, and shrink your payments cost and effort.
Sellers drive revenue (and cost)
It's estimated that when online marketplaces can increase seller retention by 5 - 10 percent, they can improve revenue by millions. It breaks down into seller acquisition costs, higher gross revenue per seller or provider, and higher lifetime revenue per seller.
- Acquisition costs: Acquiring new sellers is expensive due to marketing, onboarding and support costs.
- Gross revenue per seller: Retained sellers contribute more to revenue over time.
- Marketplace volume: Sellers drive marketplace revenue, including transaction fees, subscriptions and value-added services.
- Lifetime value (LTV): Without incurring additional acquisition costs, long-term sellers contribute more to the platform value.
Better payment keep sellers dedicated to your platform
Sellers and providers, often gig workers, want faster payments, and will select a marketplace that offers the most advantageous payment terms. Real-time or instant payments are now expected. Online marketplaces struggle with balancing cash flow with seller payment expectations.
Sellers and gig workers often select their preferred payment method, but each has distinct advantages and disadvantages, and require the online marketplace to administer all payout types.
Bank transfers: Funds are transferred directly from the marketplace to the seller's bank account.
Pros: Widely accepted with lower fees for the marketplace.
Cons: Sellers typically have to wait 1 - 5 business days for bank settlement, and many sellers may not have traditional bank accounts.
Push-to-card: Funds are sent in real-time to the seller's debit card
Pros: Faster payments for sellers.
Cons: Marketplaces pay higher fees to card networks, these fees are often passed on to sellers to access payments instantly
Digital wallets: Funds are sent to a seller's existing digital wallet (e.g. PayPal)
Pros: Faster payments for sellers, debit cards can be used for any purchases.
Cons: Sellers can incur fees or conversion charges for non-local currencies.
Marketplace-branded wallets: Funds are sent to a seller's marketplace wallet.
Pros: Faster payments for sellers, can reduce payout fees, online marketplace holds funds longer for interest and potential future sales.
Cons: Seller wallets have limited use outside the marketplace.
⇒ Attach a branded debit card to your wallet to expand spending options.
Give sellers more options to use their earnings
There's a new way to pay sellers that gives them instant access and many spending options all while saving on payouts — and earning yield — for marketplaces.
How it works:
- With Alviere, the Marketplace creates a branded wallet for sellers, giving them the payment option during onboarding.
- Sellers create their Marketplace Wallet using required identity verification. This is typically already captured during marketplace onboarding.
- Marketplaces payout sellers in bulk depending on their preferred payment frequency.
- Each seller with a Marketplace Wallet is issued an attached open-looped debit card for non-marketplace payments.
- Sellers can hold funds in the Marketplace Wallet, add additional balance for expenditures, or save funds for future marketplace spending. Sellers can also use the Marketplace Wallet to directly transfer funds to other sellers on the platform.
- Marketplaces capture yield on wallet stored balances. Interest can be shared with sellers as incentives, or owned by the marketplace.
- Marketplaces avoid bank and network fees, as funds are transferred from the marketplace operating account to sellers' accounts.
Seller & marketplace benefits
More payment options for sellers translates into longer retention and more revenue. Marketplaces benefit from seamless payments and better control over cash flow. Once funds are allocated to a seller's Marketplace Wallet, the marketplace continues to earn interest on the funds until they leave the wallet. Attached debit cards earn interchange and encourage keeping balance. in the wallet for use. Bank-free payments remove dependencies and latency, allowing instant payments without having to charge sellers additional fees.
And, as needed, Marketplace Wallets can allow global remittance for wallet holders, increasing balance amounts and providing that extra service to sellers.
Competition drives payments innovation
Sellers and providers have multiple options, with many choosing all marketplaces to maximize their potential earnings. While they may opt to participate in a number of competitive marketplaces, make sure these gig workers choose yours for the most seamless and beneficial payments. Your Marketplace Wallet can be the preferred payout method and lower your payment fees.
