Brand protection is one of the main concerns many business owners have when considering whether or not to launch their own marketplace. They worry that having outside sellers on their website can damage their reputation with customers by providing poor customer service, selling products that don’t make sense for their site, and by participating in malicious activities.
Protecting one’s brand is important, but putting too much stock into this worry can be detrimental because it can prevent companies from launching a marketplace sooner. Those who already have a marketplace can feel so pressured to protect their brand that they end up conducting their marketplaces rigidly, preventing it from being as successful as it could be.
What many companies don’t realize is that the marketplace owner has the power and the tools necessary to prevent any damage to their reputation. When a company runs a marketplace, it can: