Could you tell us a bit about yourself?

My name is Kevin Ducón from Bogotá, Colombia. I hold an MSc in Computer Science from Universidad Politecnica de Madrid and a BSc in Computer Science from Universidad Ditrital de Bogotá.

I have been working in information and communications technology for more than fifteen years and began working at Besedo five years ago, specializing in IT Service Management and Information Security. I started as a local ICT Administrator in our Colombian center, then as an ICT Supervisor, and currently, I am the Global Head of ICT-IS.

Over the past five years, I have applied my knowledge and skills to this ever-changing industry by creating policies and processes aligned with the industry’s best practices, supporting our clients, and continuously improving our on-going projects.

What are your responsibilities as Global Head of ICT-IS?

As the Global Head of ICT-IS at Besedo, I’m in charge of all levels of support in information technology and communications.
I oversee the Global ICT work, and together with my ICT team, I make sure that we fulfill our most important metrics – availability, service-level agreement, and customer satisfaction.

On top of that, I manage and provide insights into our security guidelines and develop strategic and operational plans for the ICT department to ensure that all necessary tools and processes are fully functional to achieve the company’s overarching goals and ambitions.

I also have hands-on technical responsibilities in supporting and developing mission-critical systems, which are running 24/7, to make sure our moderation services are successfully delivered to our customers worldwide.

From an ICT point of view, what are the key elements that must go right when running a content moderation operation?

The essential part from an ICT standpoint when running a content moderation operation is to truly understand the priorities and needs specific to the operation. Having an IT strategy to translate business needs into functioning IT operations is vital for a successful moderation setup.

Furthermore, ensuring good practices in network infrastructure and server setup, device management, and IT support is key to achieve a solid moderation operation. Finally, it’s crucial to have a knowledgeable and committed IT staff behind the scenes.

What are the common things that can go wrong?

When running a moderation operation, many potential issues can occur, some of the most common hazards include Internet connection, networks, or servers going down, power outages and failed infrastructure deployments.

For instance, content moderation relies heavily on a stable Internet connection, and you cannot blindly trust that it will just work. Instead, you need to make sure that your Internet service always works to its full capacity.

What safety measures are needed to make sure the moderation operation runs smoothly?

It’s important to have proactive safety measures in place to guarantee that the moderation operation always is carried out correctly. A good first step is to plan the implementation of the moderation services thoroughly before putting disaster mitigations plans in place.

For example, at Besedo, we work with several Internet service providers in case one of those fails to deliver correctly. We also work with fault-tolerant networks, a resilient infrastructure, third-party support, etc., to ensure that our IT operations remain stable when potential risks materialize.

On top of this, we run daily IT checklists and use monitoring systems that allow us to prevent potential challenges during IT ops. Also, we have backup routines to avoid any information loss or damage and use UPS to keep our critical devices turned on.

All in all, for anyone looking to run a successful moderation operation, many countermeasures must be put in place to make sure that IT operations run smoothly.

What’s the best thing about your job?

My job allows me to work in the different areas of the ICT Function and with all the disciplines that contribute to the business. For some people, ICT only assists with end-user tickets because that’s what’s visible to them. However, IT is not just a commodity but a strategic ally for us to deliver the highest level of services to our customers.

I’m proud to apply my skill-set and knowledge to Besedo’s purpose and values, which I genuinely believe in. When I took the role as Global Head of ICT-IS, I sought out to implement our promise ‘grow with trust’ into everything we do in our team. This has shaped the ICT team’s goal to help all functions grow with trust, through efficient processes, guaranteed quality of services, and high customer satisfaction.

At Besedo, we have an excellent ICT team of committed and ambitious individuals who love what they do and work hard to improve the company every day.

Global Head of ICT-IS' best tips for running an IT department

Kevin Ducón

Kevin Ducón is Besedo’s Global Head of ICT-IS. He has been working in information and communications technology for more than fifteen years. Over the past five years at Besedo, he has applied his knowledge and skills to the ever-changing content moderation industry.

This is a guest post by Martin Boss, Founder of MultiMerch. MultiMerch helps online marketplace owners build and grow successful businesses.


 

Starting a regular, run-of-the-mill online store is a piece of cake nowadays. Get a Shopify account and upload a few products, sell and dispatch them – and you’re done.

Two-sided marketplace platforms with vendors are different beasts. Not only you need more complex software to run a marketplace, but the operations are also more difficult as well when you’re dealing with two sides at once.

Here are some of the marketplace operations you’ll have to master to start a successful online marketplace business.

 

Setting up and maintaining your marketplace platform

First and foremost, a regular e-commerce platform like Shopify won’t cut it if you want to run a marketplace.

So, you will be looking for multi-vendor software (or two-sided marketplace solutions) to power your new marketplace.

There are three main types of marketplace software:

  • SaaS or cloud-based platforms
  • self-hosted marketplace software
  • multi-vendor e-commerce extensions

Cloud marketplace solutions like Sharetribe, Arcadier, and Marketplacer are the easiest to get started with and require little to no technical knowledge. In most cases, they also offer free trials so you can spend a while playing with the platform to make sure the solution fits your requirements.

Self-hosted marketplace software like MultiMerch or CS-Cart gives you much more customization and modification possibilities since you have complete access to the source code and own it outright. However, you will need at least some technical skill to build a marketplace platform using self-hosted software.

Finally, you can take a regular CMS like WordPress, Magento or OpenCart and slap a multi-vendor extension on top of it. In this case, you absolutely want to have a developer on your team who has experience working both with the underlying system and with two-sided marketplaces. We never recommend this approach to new marketplace owners with no technical team.

Depending on the software type you go with, setting up a new marketplace platform will take you anywhere from a few hours to a few months (I’ve seen years, but I don’t recommend it).

 

Finding, onboarding, and managing vendors

It’s not a multi-vendor marketplace if you don’t have any vendors. So, you will need to find vendors and convince them to join your platform.

We recommend doing market research and lining up at least a few vendors early on – even before you start building the platform. Not only will this allow you to validate your idea and generate a little awareness, but it will create a pool of early adopters who are willing to test your platform and provide feedback.

Here are a few ideas for finding your initial vendors:

  • join a bunch of Facebook groups for store owners
  • reach out to Etsy/Amazon sellers directly or via communities
  • create a few paid Google/Facebook/Instagram ads
  • go door-to-door the old school way if you’re starting a local marketplace

This article by Shopify describes the process of finding manufacturers and wholesale suppliers. You’ll find it most helpful for a B2B marketplace platform, but the process will be similar if you’re building a B2C marketplace.

Now you will need to convince your vendors to join your platform, especially when you’re just starting out. What’s in it for them to join a marketplace that has barely any users? Here, you will need a landing page or a slide deck showcasing your value proposition and why it makes sense for a vendor to join you. Consider offering an incentive or two to your early adopters, such as lower (or waived) selling fees or a free onboarding service.

To reduce friction for new vendors, make sure your sign up flow is as simple and straight-forward as possible. Simplify your vendor registration forms – don’t ask for too many details right off the bat if you can do it later after the vendor signs up. Describe the process of signing up and be available to new vendors for support.

Here’s how Etsy makes the onboarding process for new vendors a breeze:

Marketplace operations in a nutshell - Etsy onboarding features

First, they really go out of their way to answer all possible questions a new vendor may have on its “Sell on Etsy” landing page. This includes a few sections covering the selling features Etsy offers, a clear overview of the fee structure, a FAQ section and even a few highlights of existing sellers.

 

Marketplace operations in a nutshell - Etsy seller stories

To sign up as an Etsy seller, you first need to create an Etsy account (if you don’t have one), then set up your shop. Creating an account is simple enough – you’ll only need your first name, email address and your password:

 

Marketplace operations in a nutshell - Etsy create account

Then, you’ll go through 5 simple steps of setting up your store – from specifying your regional settings and naming your store to upload your first items and filling out the payment details.

 

Marketplace operations in a nutshell - Etsy stop preferences

Note that Etsy will require you to upload at least one item before you can complete your setup process. While you’ll want to avoid this extra step to reduce friction for your new vendors when you’re just starting out, this helps Etsy weed out dummy signups and only accept sellers who are serious about opening their stores.

 

Creating and managing the product catalog

Now, it’s time for your vendors to start listing their products on your marketplace.

There are two common ways your marketplace can tie products to individual vendors:

  • Etsy-style, where every product is unique and belongs to one vendor only
  • Amazon-style, where a single product can be sold by multiple vendors at different prices

Both have their benefits and drawbacks, but you’ll find that most ready-made marketplace solutions out there will offer Etsy-style listings due to a somewhat simpler system architecture.

In any case, you’ll want to keep the process of listing new products simple – your vendors are busy people. This means simplifying your product listing forms, asking for the crucial information only and tailoring them to product categories you plan to carry.

Consider offering your vendors a way to upload products in bulk or import their catalog from a third party marketplace platform. If they already sell on Amazon (or elsewhere), they’ll appreciate a quick way of syncing their existing catalog with your marketplace instead of having to list all products manually. Do it for them as an onboarding service.

Decide whether or not you want to moderate products published by your vendors to keep your product catalog clean (the answer is probably yes, especially for a larger marketplace). If you do, make sure you have a moderation system in place to prevent delays. The last thing you want is for your vendors to wait a week to get their product published because you’re moderating thousands of products by hand.

 

Processing payments and managing orders

As your marketplace starts getting traction, you will be processing payments and helping your vendors deal with customer orders.

There are two common ways your marketplace can process customer order payments:

  • aggregated, where your platform collects buyers’ payments and later redistributes them to vendors via payouts
  • split or parallel, where the payment is instantly split at checkout and distributed between the vendors (and your platform, if you charge a selling fee) by the payment processor

Aggregated payments make single checkout possible and allow you to own the transaction, but place an extra burden of tracking your sellers’ finances and making regular payouts on your platform. And with the payment industry becoming increasingly more regulated, payment aggregation as a marketplace payment flow will only be getting more complex.

Split payment processing eliminates these issues and shifts the liability and the compliance burden from your business to the payment processing company. The biggest remaining problems of parallel payment processing are implementation complexity and the lack of marketplace processor availability.

However, the trend is changing. At MultiMerch, we’ve recently discovered at least 26 different marketplace payment solutions that cater to two-sided platforms.

Now, while you won’t be processing orders yourself, your vendors will need a way to receive, process and dispatch products to their customers. Since the shipping cost and speed directly affect conversion rates, the sooner your vendor gets notified about the new order, the sooner they can dispatch it and keep the customer happy and willing to purchase again.

To keep the customer informed about the status of their order, offer your vendors a way to specify the tracking number after they’ve dispatched the order. Consider connecting your order management system to a third party shipping service like ShipStation or AfterShip to let the buyer track the order without leaving your marketplace and get notified about the status changes automatically.

 

Handling customer and vendor relations

Now, simply attracting new vendors and buyers and hoping it will all work out by itself won’t do in most cases – you will need to actively keep your users happy, loyal and using your platform on a regular basis. As your platform grows, you will be supporting your users, answering their questions and helping them solve various problems on a regular basis. Do have a plan for that in place.

These are just a few of the challenges you’ll be dealing with when running your platform:

  • helping vendors sign up, customize their stores and list products
  • resolving technical issues and software glitches the users’ report
  • mediating order disputes between the vendor and the buyer
  • enforcing the rules and moderating user-generated content 

To reduce your own involvement, you’ll want to allow the buyer to communicate with the vendor directly and ask questions about the products and the orders, both before and after the sale. The more options to reach out you offer, the more likely is the issue to be resolved without your intervention.

Delays, questions, and disputes are inevitable, so you’ll need a plan (and a system) to handle them. As you grow, you may consider starting a user community and creating your own protection programs for buyers and sellers, like eBay’s Money Back Guarantee or Airbnb’s Host Protection Insurance.

 

Growing your marketplace

“If you build it, they will come” sounds great in theory, but will probably not happen in practice. You’ll get some traction due to the nature of two-sided platforms but will still need to actively promote your platform, especially in the early stages.

The unique challenge online marketplace owners face is growing both the supply and the demand side at once – getting vendors while you have zero customers and finding buyers with only a small product catalog.

Earlier, I’ve outlined a few ways of getting those first few vendors to join your platform. When it comes to customer acquisition and growth, paid, social and organic search will be your main channels – as well as other business development initiatives.

Set up a presence on Instagram and Facebook. While organic social media reach is going down, it’s still an important channel for an e-commerce brand. Now, have a paid promotion strategy for your marketplace in place to attract new users and create brand awareness. The more content gets created every day, the more value you’ll get out of paid marketing campaigns. Set aside an initial paid advertising budget and test a few different channels to see what works best. Instagram is a great channel for highly visual ads, for example.

In the long run, search engine optimization will be crucial for your marketplace since over 50% of trackable traffic on average still comes from organic search. To minimize the amount of SEO work you’ll need to do, make sure your marketplace platform is built with search engines in mind. This means search engine friendly, optimized and shareable product listings, seller stores and the rest of your marketplace. Keep in mind that most sellers won’t bother optimizing every listing (if they’ve heard about SEO at all), so make it a no-brainer for them and automate as much as possible.

And SEO isn’t only about products – there’s way more user-generated content on a typical marketplace platform:

  • product and vendor reviews
  • public questions and answers
  • vendor stories, blogs, and other things

This is great for you, the marketplace owner. Encourage your users to create great content on your platform and feature it prominently for better SEO and social proof.

 

And that is how you start and manage an online marketplace platform in a nutshell. If it sounds difficult, it’s because it is. One thing I learned here at MultiMerch is that marketplace businesses are more challenging than regular online stores, but also so much more rewarding. 

For a more in-depth guide on starting a two-sided marketplace, check out my Beginner’s Guide to Starting an Online Marketplace Business.

Martin Boss - MultiMerch

Martin Boss – Founder at MultiMerch Systems

Martin Boss is the founder of MultiMerch Systems and a fan of marketplace e-commerce. At MultiMerch, he helps companies build and grow successful online marketplace businesses. Reach out to him on LinkedIn and Twitter.

No online marketplace founder or entrepreneur set out to fail. The world loves a romantic success story, where a disruptive idea changes how we look at an entire industry. Two examples that immediately come to mind are Airbnb and Uber.

Yet, 90% of startups fail and that is something we don’t talk about enough.

Failure in itself may not be something glorious, but it’s an important ingredient for successFrom failure comes learnings, and hearing the mistakes of other marketplaces can be very useful to followers looking to avoid the same pitfalls.

Learnings from a failed online marketplace

Anton Koval is the founder of Brainjobs.pl – a failed online marketplace. Today he’s moved on and is helping founders and companies build and grow their own online marketplaces, through his agency Braincode.

We caught up with him to hear the story of his failed online marketplace, what went wrong, and the lessons he learned from the experience.

Part 1

In the first part of the interview, Anton shares the business idea, USP, and operational setup.

Part 2

In part two, Anton shares what went wrong, the actions they took to turn it around, and the main lessons learned he took with him from the experience.

Anton Koval - braincode

Anton Koval

Anton Koval is a founder of Braincode an agency that works with founders and companies to help them build their own online marketplaces. Previously Anton bootstrapped his own marketplace in HR- Tech area. Anton is a big advocate of the platform economy and remote work.

Is your site suffering from ‘marketplace leakage’? If so it’s because your customers are sharing their personal details with each other – to avoid paying site fees. But by doing so they also put themselves at risk. Here’s how to make sure your business protects itself from marketplace leakage and those that use it.

Marketplace leakage (also referred to as ‘breakage’) is a real problem for many online businesses. According to Venture Capitalists, Samaipata, the term can be defined as ‘what happens when a buyer and seller agree to circumvent the marketplace and continue transacting outside the platform.’

Broadly speaking, there are several ways in which personal details are shared – via listings, embedded in images, and within one-to-one chats. Information shared typically includes phone numbers, email addresses, WhatsApp details, and money transfer account details.

From a user perspective, it might make sense to try and do so. However, many don’t realize the wider ramifications of marketplace leakage and the negative impact it can have on the platforms they transact on – and on their own businesses.

Let’s look more closely at the impact of sharing personal details online via marketplaces and what can be done to prevent it.

How personal details do damage

As we see it, there are 3 key ways in which sharing personal details can have a negative impact.

1. Conversions

From eBay to Airbnb; Amazon to Fiverr – the vast majority of marketplaces facilitate the trade of goods and services. As a result, a core part of each platform is its payment infrastructure.

But not only do these solutions offer a trusted way for users to transact, they can also be used to collect fees – a percentage paid for using the platform.

In the early days of a platform’s existence, many sites may be available to both buyers and sellers for free – whilst the marketplace is trying to scale and get as many users as possible. However, once it’s reached a certain threshold and networks effects are visible, it’s common for them to begin charging, often through the transaction.

This is often when users – primarily those selling on these sites – will try to circumvent the platform and include their contact details in each post. It might be that they paste their email address in the product description itself, or create an image that has details included within it.

When this occurs, your marketplace loses out on conversions. It’s something that’s easy to overlook and – on the odd occasion – let slide. But in the long-term, activities like this will seriously dent your revenue generation.

2. Retention

One of the major differentiating factors between online marketplaces is whether they’re commoditized or non-commoditized – particularly where service-focused platforms are concerned.

While commoditized service providers are more about getting something specific fixed, delivered, or completed (think Uber or TaskRabbit); non-commoditized providers (eg Airbnb) take into account a number of determining factors – such as location, quality, and available amenities.

Due to the nature of these sorts of services, they are more likely to encourage personal interactions – particularly when repeat transactions with the same vendor are involved. Once trust and reliability are established, there’s little incentive for either party to remain loyal to the platform – meaning conversions are more likely to be forfeited.

Leakage of this nature was partly to blame for the demise of Homejoy – an on-demand home services recruitment platform. The nature of the work involved increased the likelihood of recurring transactions. However, it transpired that the features facilitated by the site – in-person contact, location proximity, and reliable workmanship – were of greater value than the incentives offered by using the site itself in many cases.

As a result, more and more transactions began happening outside of the marketplace; meaning that the site lost out on recurring revenues.

3. User safety

Losing control of the conversation and having users operate outside of your marketplace, increases the risk of them being scammed.

This is particularly prevalent in online dating, where even experienced site users can be duped into providing their personal details to another ‘lonely heart’ in order to take the conversation in a ‘different direction’.

eHarmony offers some great advice on what users should be wary of, but the general rule of thumb is to never disclose personal details of any kind until a significant level of trust between users has been established.

While similar rules apply to online marketplace users too, some telltale signs of a scammer are requests for alternative payment methods – such as bank or money transfers, or even checks.

An urgency to trade outside of the marketplace itself is also a sign to be aware of. So it’s important to advise your users to be cautious of traders that share their personal details. Also, make a point of telling them to be wary of vendors who are ‘unable’ to speak directly to them – those who request funds before any arrangements have been made.

In all cases, marketplaces that don’t monitor and prevent this kind of activity put their customers at risk. And if their transaction is taken away from your site, they forfeit the protection and assurances your online marketplace provides.

But unless your users understand the value and security of your platform, they’ll continue to pursue conversations off your site and expose themselves to potential scammers.

Preventing marketplace leakage

The best way to overcome these issues and prevent marketplace leakage is to do all you can as a marketplace owner to keep buyer-seller conversations on your site and reinforce why it’s in their (and to some extent your) interest not to share personal details and remain on your platform.

There are several ways to do this.

Stronger communication

The stronger the communication channels are within your platform, the less incentive there is for customers to navigate away from your site.

From eBay and Airbnb’s messaging functionality (which look and feel like email servers) to one-to-one chat platforms (similar to Facebook Messenger or WhatsApp), or even on-site reviews and ratings; the more user-friendly and transparent you make conversations between different parties, the greater the likelihood they’ll remain on your site. A point we also highlighted and covered in our webinar about trust building through UX design.

In addition, it’s always worth reinforcing exactly what your marketplace offers users – and reminding them of their place within it. For example, telling them they’re helping build a trust-based peer-to-peer network is a powerful message – one that speaks to each user’s role as part of a like-minded online community.

Provide added value services

If users feel as though there’s no real value to using your site – other than to generate leads or make an occasional purchase – there’s very little chance that you’ll establish any meaningful connection.

The best way to foster user loyalty is to make the experience of using your marketplace a better experience to the alternative. In short, you need to give them a reason to remain on your site.

In addition to safety and security measurements – consider incentives, benefits, and loyalty programs for both vendors and buyers.

Turo, the peer-to-peer car rental site is an example of a company that does this very well – by offering insurance to lenders and travelers: both a perk and a security feature.

In a similar way, eBay’s money-back guarantee and Shieldpay’s ‘escrow’ payment service – which ensures all credible parties get paid; regardless of whether they’re buying or selling – demonstrate marketplaces acting in both customers and their own interests.

Another way in which marketplaces offer better value is through the inclusion of back-end tools, which can help vendors optimize their sales. Consider OpenTable’s booking solution for example. The restaurant reservation platform doesn’t just record bookings and show instant availability; it also helps its customer fill empty seats during quieter services.

Platforms that can see past their initial purpose and focus on their customers’ needs are those that thrive. They offer a holistic, integrated solution that addresses a wider range of pain points. Which is a great way of ensuring they’ll remain loyal to your business; ultimately reducing leakage.

Filter and remove personal details

A relatively straightforward way to prevent marketplace leakages is to monitor and remove any personal details that are posted on your site.

However, this can turn out to become quite the task, especially when the amount of user-generated content increases.

The next logical step here would be to direct efforts towards improving your content moderation. Either improve your manual moderation and expand your team or look at setting up an automated moderation solution.

An automated filter is a great solution to help prevent personal details to be shared, and although the filter creation process can be complex, it’s definitely possible to create highly accurate filters to automatically detect and remove personal details in moderation tools like Implio.

Machine learning AI is another great automated moderation solution that will help with preventing personal details, and much more. Built on your platform-specific data, a tailored AI moderation setup is developed to meet your marketplace’s unique needs. This solution is a great option for online marketplaces that look for a complete customized solution.

Added value and moderation – a mutual benefit

Trust, security, and accountability are the most valuable features that any marketplace or classifieds sites can offer its users. However, they’re not always the most visible components.

But when they’re parts of a broader benefit – such as optimized user experience or a suite of useful features – the need to share personal details and transact way from a site is mitigated.

That said, shared personal details will always contribute to marketplace leakage. And without the right monitoring and moderation processes in place, it’s impossible for marketplace owners to overcome the challenge of marketplace leakage.

At Besedo, we work with online marketplace and classified sites to help them make the right choices when it comes to safeguarding their businesses and users by removing personal details.

To learn more about how you can prevent personal details form your marketplace, specifically through automated filters, check out our on-demand Filter Creation Masterclass.

Wondering whether the technical side or the business side is harder when building marketplaces?

Well, they are equally difficult.

However, if you’re competent with technology or have a good web development team, the technical side will be much easier.

It will also help to be aware of common technical pitfalls and challenges. At Sloboda Studio we’ve identified the top 4 technical challenges in software development of marketplaces that founders may face:

#1: Multiple user roles

There are three common user roles in marketplaces: customers, suppliers and administrators. Customers and suppliers affect the construction of the marketplace in particular, whereas administrators can be found on almost any project. Marketplace development begins with a clear definition of user roles, their permissions and access level, and ways to interact with each other.

Challenge: Different interfaces

The difficulty here is to create three different interfaces that work perfectly on the same platform but can function differently according to the role of its user.

Recommendation:

User roles should have personalized interfaces, and tools for interacting with the platform, registration forms, personal accounts and, most importantly, different permissions. Each query must either be allowed access to only one of the user types or return different results.

#2: Marketplace security

While building an online marketplace, you need to make sure you’ve eliminated all the gaps and security issues, starting with GDPR compliance and ending with data leakage and hacking proofing. This can be accomplished by following the best practices of development.

Data privacy and identity verification are the top priorities for marketplace security. The security issue has especially intensified after the introduction of GDPR.

Challenge: Data Privacy

Data should be collected with the user’s consent; otherwise, you’ll be in violation of data protection regulations. There is no data privacy without data security.

Recommendation:

To protect against hacking, Sloboda Studio uses the latest versions of all user libraries to avoid possible security breaches. You can also use Github or Snyk to prevent any vulnerabilities in your marketplace platform.

Challenge: Identity verification

Verifying a user’s identity is a big part of marketplace security. One common way to verify identity is to ask for a passport, driver’s license or other types of ID.

Recommendation:

In addition to asking for ID, your marketplace can also request phone number verification.

Challenge: Authentication

The authentication process comes after a user’s identity has been validated. Unfortunately, traditional methods of online authentication, such as the use of simple passwords, don’t work now since many frauds have appeared in the last several years.

Recommendation:

There are many options available for secure authentication:

The system may authenticate users with a special token generated on the basis of his/her password during login. The passwords themselves are not stored in the database and are encrypted with special algorithms. The front end sends the user’s token to the back end, and the token is validated.

The authentication process can also be simplified by signing up using a social network login, for instance, by using and connecting a Facebook account.

You may also wish to use two-factor authentication, for instance, a one-time password or code that is sent to the user via email or SMS. This method drastically improves security.

You can also use a variety of solutions like OAuth and OpenID. If your app features an API, you can use JWT tokens. The advantage here is that JSON Web Tokens can store additional useful information about users, resulting in higher performance. In the case of cookies, it is sometimes necessary to make requests for more information. With JWT, this information can be transmitted in the token itself.

#3 Payments

Every marketplace has its own website monetization system. There are a few available online payment solutions that can be implemented. However, you need to think of all possible scenarios in order to avoid payment failures.

Challenge: Payment method

Having the right payment method is key to building to trust and encourage transactions through your platform. It’s important to find a payment method that works smoohtly both for your business and for your users. (sellers and buyers alike)

Recommendation:

Using payment gateways like Stripe or Braintree as a payment solution would be a great choice for service marketplaces. Stripe has a powerful API that is integrated directly into your marketplace. The most important advantage of this payment integration is its transparency and stability.

#4 Multiple time zones

Challenge: Different time zones

It is no secret that when you use a global rather than a local marketplace, there is a good chance that your supplier and customer will have different time zones. Say you want to book an interpreter for your meeting. Which time zone are you going to choose?

Recommendation:

In order to avoid giving your customers a headache, and to make life easier for everyone, you need to have a universal time zone. We save user time zones in IANA format, which is the time zone database (a.k.a. TZ or Olson database). It’s a universal database of information on global time zones used with computer programs and operating systems. For convenience, our team of developers keep time in UTC and then convert it to the user’s time zone.

Challenge: Day-light saving time

Another difficulty can be a recurrent order or service that is repeated at a previously scheduled time. Let’s say a customer sets an appointment for a cleaning service, by the same company, on Thursdays at 9 a.m. During daylight savings time, the customer’s service time changes.

Recommendation:

The solution here is to create a special service that verifies whether the current time is in the same period (i.e. daylight savings time) and whether or not the time has changed for that period, then adjusts it according to the desired time.

To sum it all up, there are a number of technical challenges facing marketplace owners, including security, payments, time zones, price adaptability, user diversity, and the necessity for a user-friendly interface.

Top recommendations for founders:

  • Start by creating three different user roles, with individual registration forms and separate accounts.
  • In order to protect your marketplace, use the latest version of libraries and always double-check authentication.
  • Think of all possible scenarios in order to avoid payment failures and use Stripe or Braintree to give both sides a seamless payment experience.
  • If you have a global marketplace, ensure that your suppliers and customers have the same time zone and don’t forget about time changes, such as daylight savings time.
  • Don’t forget that your customers are people, and as much as you want, the platform can’t eliminate the human factor of the marketplace. So make sure to think through each case when you need to notify others about possible issues or delays. Notifications should be sent not only to service providers but also to customers.

Pavel Obod

Pavel Obod founder of Sloboda Studio

Pavel Obod, Founder of Sloboda Studio, Top Ruby on Rails company in the world according to Clutch. Sloboda Studio has been providing high-end web development services for almost 10 years. Pavel is also a Payoneer’s ambassador in Ukraine.

Trust is a key component of a successful marketplace and there are many small parts that help achieve it. One element that plays a major role in trust-building is of course how you present your platform to your users and the experience they have while using it. But how can you use UX design to build trust in your marketplace?

UX design is often described as the process of enhancing user satisfaction by improving the usability, efficiency, and accessibility of a website.

This definition is true when designing for online marketplace too. A marketplace’s UX design should be viewed and function as the spine of the platform. Its task is to efficiently guide users through the site to the desired end destination (oftentimes transaction completion).

What’s different for online marketplaces, is that most of them rely heavily on user-generated content. This dependency limits the level of control you have over a vast majority of the user experience. Since you are not the one choosing the images and creating the text, it’s harder to ensure that it aligns with your brand, tone of voice and messaging. A marketplace’s role is to help strangers find and transact with each other. Without the important physical clues, we’d normally use to establish trust and the added challenge of limited content control it can be a struggle to achieve high enough trust levels for strangers to engage.

That’s why it’s vital for online marketplaces to include trust-building elements in their UX design. It’s also imperative that this is combined with a highly selective content curation and reviewing strategy since low quality and irrelevant content can quickly destroy any trust gained from trust-inducing UX design.

Keep in mind that trust building isn’t a one-off effort. In order to achieve a truly trustworthy marketplace, your trust-building elements need to become an integral part of your marketplace’s UX design, from pre-acquisition and throughout the entire user journey. On top of that, you need to continuously deliver on the trust promise you make with your UX design. This means following through and actually making your users safe for instance by offering great and timely customer support, curating and reviewing content diligently and providing secure payment channels.

How do I build trust through UX design?

Make sure to design and develop the user journey for trust. Whether it’s keeping your top listings on the home page, ensuring quality suppliers, presenting honest reviews, or offer easy support, UX elements like these will help build trust in both your platform and users.

Want more detailed info on how you can build trust into your UX design? We invited Bec Faye, Marketplace Optimization & Growth Specialist, for a webinar to share her knowledge and expertise. Watch the full webinar recording here.

User content is the lifeblood of marketplaces. It can feel counterproductive to remove listings, posts or profiles, but the reality is that some content just isn’t good for your site or users. Whether it be spam, scam or just low quality that makes it undesirable, you need to curate what users post. However, while you need to manage and remove inappropriate content to protect your users and maintain a high-quality inventory, the goal should always be to limit the volumes you reject.

 

What’s the main purpose of refusal reasons?

Refusal reasons play a huge role in decreasing the number of items you must reject, by giving you better insights into where and why issues arise on your site and what policies users generally clash with when publishing content.

If properly implemented, refusal reasons are also very helpful in providing on-point feedback to your users that help educate them, increasing the chance of them getting their content approved next time they post. An example of feedback could be an email stating “We do not accept the publication of ads referring to counterfeited items or piracy, streaming app, etc.”

The success of marketplaces relies on good quality content and good user experiences. This cannot be achieved without proper feedback via refusal reasons.

 

Is there a template for the best refusal reason implementation?

The ideal refusal reason setup varies from marketplace to marketplace depending on the audience, location, and inventory. This means that each setup will be unique, however, there are some elements that marketplaces universally must consider when it comes to refusal reasons. Having worked with players of all sizes across the globe for more than 15 years, we’ve been able to build a framework of best practices that work as a guideline for solid refusal reason management.

To help you implement best practices for refusal reasons, we spoke to our head of filters Kevin Martinez. He’s worked with most of our clients advising them on how to best manage and implement their refusal reasons. Here are his 4 tips for better refusal reasons.

 

What should you think about when deciding a refusal reason?

A refusal reason must be easy to understand for the user attempting to post his ad, but also by the agents doing manual moderation. If the refusal reason is too convoluted, the user will not understand the feedback they receive, and you run the risk of them repeating the offense and getting their content rejected again. This obviously causes a very negative user experience most likely resulting in increased churn.

If the refusal reason isn’t clear to the agents doing manual moderation it will both impact the quality of feedback your users receive and decrease the value of the insights you’re generating through refusal reason analysis. Furthermore, if your refusal reasons aren’t clear it will likely cause confusion and reduce the efficiency of your agents by preventing them from taking fast decisions.

Another advice for building good refusal reasons is to approach it from a content quality view rather than focus on item categories or services.

Create refusal reasons that can be applied broadly while still representing the same issue and where the educational email sent to users makes sense regardless of what item they were trying to post.

For instance, a modified PS4 that can run illegally downloaded games, fake Nike shoes and a cloned smartphone, could be refused with the same refusal reason: counterfeits and piracy. The feedback email sent to users who get their ad refused, for this reason, will need to be general enough to cover all cases included in the refusal reason category, but also informative enough to educate the user properly. It can take a bit of tweaking before you get it right, but it’s an important exercise if you want to have an efficient refusal reason setup.

 

How many refusal reasons should you have?

The fewer the better.
A high-performing and well-trained agent working in an optimized content moderation tool can handle about 600+ ads per hour. Even the best agent, however, will be significantly slowed down by a bad refusal reason setup. Too many, or vague, refusal reasons will cause confusion and efficiency loss. For example, if you expect Cannabis to be refused as drugs, paracetamol as medicines and that fat-burners should be refused for pharmaceutical products, you create confusion for the agents to use the proper refusal reason per items.
Grouping items, representing the same content issue, decrease the seconds an agent need to spend when deciding the action for each content piece.

On the other hand, it’s also important to do not have too few refusal reasons. Otherwise, the data you get will be too broad giving you no actual meaningful insights. For instance, if all bad items are refused for forbidden items without any distinction (weapons, drugs, profanity, etc.) you cannot take proper action to improve/maintain the quality of your site as you will be unable to pinpoint the main issues to focus on.

 

Any refusal reasons that are universal to all marketplaces?

In general, refusal reasons are unique and tailored to the specific marketplace or community, however, there’s one refusal reason that’s sadly universal to all marketplaces: SCAM. The refusal reason setup for scams can be replicated across marketplaces because it should, practically, always follow the same structure. Anything refused as scam should not result in an educational feedback email to the user, and the content piece should not go live.

Scam should also always be the top priority refusal reason to use in cases where a content piece breaks the rules in multiple ways. For instance, a scammer trying to sell something illegal, should not be refused with the illegal refusal reason, but always with the scam category. Using the wrong category for scam content helps educate the scammers in how they can circumvent your system and get their content published next time.

One other example of universal refusal reasons is duplication, we have yet to see a marketplace where there’s been any reason to have duplicate content, and the educational email is always straight forward and easy to understand.

 

What is an example of a good or bad refusal reason?

A bad refusal reason is too generic, an example could be a refusal reason called forbidden items/services. A refusal reason like that isn’t giving the user detailed feedback on why their content wasn’t approved and as such doesn’t allow them to improve.
Users must understand the terms of use for the website, and specifically the terms they’ve broken when having their first content piece refused. Otherwise, they may replicate the action next time they try to publish content. Or they may flood customer support with angry emails asking why their ads are not online. In the worst-case scenario, they will simply stop using the site. Unfortunately, because the competition is so fierce for online marketplaces, users usually have many alternatives to your site. This, in turn, make the worst-case scenario of silent platform leakage the most likely.

Good refusal reasons, on the other hand, target specific bad content and group them by family. For instance (drugs with medicines or weapons with fireworks). The title of each refusal reason should also be very explicit and consequently logical to use for the agents and easy to understand from an end-user perspective.

This is the approach we use in the Besedo Layers. Apart from helping agents to be more efficient, and improve the user experience for those adding content to your site, it also makes it easy to narrow down your site’s biggest content threats when analyzing the refusal reason data.

 

Getting more out of your refusal reasons

Whether you are looking to improve your refusal reasons, or need to build the framework from scratch, your first step should be listing your overall needs. Look at what you want to get out of the data, what information your users need, and then balance that with what your agents realistically can handle while maintaining high efficiency.

Once you’ve pinpointed these needs, you can start building the framework. List all the refusal reasons you believe you’ll need, then start trimming it by grouping similar ones.

Finally, test the new structure with all involved stakeholders, agents, end-users and those who are going to use the data gathered from the refusal reasons. As with most things in content moderation, refusal reasons need to be tweaked from time to time, but it’s important that they don’t change too often. Otherwise, you risk reducing agent efficiency, confusing end-users and collecting data that can’t be compared with previous samples, making long-term data comparison and content moderation strategy near impossible.

If you need help or advice with your refusal reason setup or content moderation strategy in general feel free to reach out for an informal chat about how Besedo can help solve your needs.

If user generated content is the lifeblood, then the portal is the spine of any successful marketplace. Without a quality portal your entire business will quickly collapse.

Developing and maintaining the framework of your marketplace can be hard and expensive work, that takes away focus from other critical business areas like monetization strategies and product evolution.

Luckily there are a lot of great partners out there providing platform solutions. Russmedia Solutions is one of the most experienced companies in the business, having completed more than 100 successful projects.

We had a chat with their CRO Adrian Daniels about common challenges, pitfalls and tips for marketplace owners setting up their portal.

 

What does Russmedia do?

RussMedia Solutions is an international company that offers software services for online businesses. Our solutions include Job Board Software and other specific solutions for Real Estate Platforms, Car Portals and other online classifieds. We apply a structured approach to development, supported by dedicated project managers and product owners. Today our expertise includes digital marketing, user experience, SEO and conversion rate optimization.

Some of our key features include semantic search, matching, and classification based on machine learning, artificial intelligence, great filtering capabilities, user alerts plus very powerful analytics.

We began as an internal software development department of the Russmedia group, but soon after that, we started to develop online portal solutions not only for our internal products, as we started having requests for our solutions from external partners. We also took on the development and maintenance of news, job, car and real estate portals. Since then it’s been 15 years and more than 100 successful projects.

 

Why should marketplace founders partner with Russmedia to build their marketplace instead of using an in-house team?

We’ve built many projects from scratch. First our own portals and then many for our partners. When you have an in-house team the cumulated experience of your team is rarely that rich and diverse. Finding a solution outside your company might very often prove to be more effective not only cost wise but also from the human resources management perspective. You do not have a handful of people that are specialized in very specific technologies, but an entire company at your disposal with a lot of experience and with expertise in multiple areas. You have support around the clock and you also get to be part of a community.

Having a company that offers software as a service also saves the cost in developing new features or functionalities, many times we develop these and then offer it to our clients either as part of their subscription or at a better cost than if they would have developed it in-house.

 

You’ve recently joined us in a webinar around migrating from one marketplace tech to another, could you give us one example of pitfalls you’ve seen marketplace owners fall into when going through this process?

For sure, we assisted and conducted many migrating processes. some very successful, some that had many challenges. From my experience, there is a huge risk if planning has not been done thoroughly. Transparency and setting up clear goals is crucial and unfortunately, it happens that some of these checkpoints are not completed.

If you’d like here is a very short list:

  • Schedule proper training for all users of the new tool
  • Make a test migration with live data – It’s Important to test with live data, to measure migration timings and find out possible data issues with live data before the actual migration. Once data is there, more complete tests can be performed.
  • Make sure all involved parties are present on migration date

 

What are some of the most common challenges marketplaces have when reaching out to Russmedia?

There are multiple situations, but 3 of the most common are:

  • Undersized infrastructure – companies that did not plan their growth in advance and went for a lower budget solution which is not scalable, and then they end up in the situation where they need to migrate to a different solution for this very reason.
  • The platform they currently use is not flexible enough – We often have prospects that tell us their current solution does not support multiple languages or cannot be integrated with certain apps or simply some desired design upgrades are not possible on the current platform
  • Start-up in need of a solution

 

There are many vendors out there that can help build a marketplace. What sets Russmedia apart?

Indeed, many great companies and many good solutions are out there. I believe our key differentiator is the fact that our platforms are highly customizable. We are very flexible when it comes to integration or any other custom requests. We developed various projects for our clients from classic real-estate portals or general job portals to jobs in aviation or a marketplace for horses. We can adapt our platforms to nearly any language.

Last, but not least our partners become part of a community. We take on the innovation of new features, so the client no longer has to worry about this. Sometimes we give them new features that they did not even consider developing, but which end up being a great revenue stream for them.

 

Any examples of past projects that you’re really proud of? What made that project, in particular, a success?

We are proud of all our projects. Vol.at, CVOnline.hu, Laendleimmo.at, Simplysalesjobs.co.uk, Laendlejob.at, Immo.tt.com, Jobs.tt.com, just to name a few. If we’d have to pick one of them maybe laendlejob.at. It is also part of our group and it looks great; it works great and it is highly profitable.

 

You’ve just recently partnered with Besedo. How does that fit into your strategy? Does it allow you to provide an even better or more complete offering?

Absolutely. Besedo has great tools. AI-powered moderation tools are something that every marketplace should have. This partnership allows us to give more to our clients and it takes the pressure off our team as we no longer need to invest in research to develop something like this.

Last but not least Besedo’s solutions, like ours, are tailor-made so every client gets their own customized solution.

 

If you could give one piece of advice to those setting up a marketplace portal what would it be?

Plan. Make some plans and when you are done revise those plans. You also need to make sure you plan for the long term. Make sure you take into consideration at least the first three years of your existence and make sure that when you build your business it will be scalable.

This should also reflect on the infrastructure you are setting up. It might seem cheaper to get an off the shelf solution at first, but after a few months you might realize this was not a great idea higher costs are involved and more effort: migration, scouting for a different platform all the back and forth…you lose time and money.

About Adrian Daniel

Adrian is Chief Revenue Officer at Russmedia Solutions.  he’s worked his way up in the company, so he knows the business inside-out. Started as a junior programmer in Russmedia more than 9 years ago and believes that technology is here to help us.

He mostly enjoys the fact that technology can create endless possibilities to help businesses thrive. Classifieds portals and their growth have been his focus for nearly a decade and now as a CRO he is am looking at all the potential that Russmedia’s solutions can offer potential partners.

He is highly motivated and believes that any problem has a solution.

We recently had the pleasure to interview the former CEO of dubizzle, and founder of Working in Digital, Arto Joensuu. Throughout the interview, Arto shares his knowledge, experiences, and advice on how to establish a successful online marketplace, as we explore numerous key areas vital to marketplace success including lead generation, monetization, expansion, trust building and much more.

 

Q: Hi Arto, thank you for taking the time from your busy schedule to talk with us. Can you begin by sharing some insights about your career so far?

Arto Joensuu: Hi Emil and thanks for getting in touch. Sure. I’ve been working in the digital side or marketing throughout the past 20 years. It all started in the late ’90s with a startup in the mobile services space (we’re talking ringtones, SMS groups, mobile wallpapers, and WAP-based games back then). Iobox was doing some pioneering work in this space and I was happy to be a part of it until it got sold off to Terra Mobile. I then went on to do a “quick” visit at Nokia, which spanned across 12 years and included pretty much the “A-Z” across the digital customer journey. After Nokia, I spent 6 years in Dubai, UAE, where I had the opportunity of being involved in one of the early stage success startup stories: dubizzle.com. After the company was sold off to Naspers, I’ve been involved as an investor and advisor with multiple startups, ranging from job finding solutions for the emerging markets, cryptocurrencies for classifieds and once in a lifetime golf trips across the world. Time flies…

 

Q: Your first steps into the world of marketplaces were as Head of Marketing at dubizzle in the UAE. How did you strategically align the business and expanded the growth?

Arto Joensuu: Dubizzle was at an interesting stage of development when I joined. It had become a success in Dubai (one of the emirates within the UAE) and was looking to expand further within the country, as well as across the MENA region. The company was led by 2 smart and driven entrepreneurs who wanted to spread the concept across the region and simultaneously increase the revenue streams within the UAE.

In order to prepare ourselves for growth expansion, we needed to ensure we had a common understanding of WHY we exist as a company as well as how we could go about driving this vision forward across markets that we had little personal understanding on. This sparked an internal workstream to define our overall purpose/vision (WHY), our common values (WHO), our operational strategy (HOW) as well as the expected outcomes (WHAT). Some would label this as a brand exercise, I would call it the formation of our manifesto and overall red thread for the years to come. The end result of this exercise is best summarized on Mark’s website. (http://emmarkjames.com/#/)

 

Q: What were the most important components in your marketing strategy at the time?

Arto Joensuu: On a broad level, we used to talk a lot about 2 types of marketing functions/skillsets: makers and spreaders. Makers were fundamentally responsible for bringing our brand purpose to life through content. Spreaders mastered distribution and optimization. Our content at large was divided into stock and flow content, signifying larger “stock” content pieces centered around wider themes, whilst the “flow” content was more reactive or trigger based.

Another important dimension to the strategy was a holistic understanding of the customer journey and user segments. The customer journey had to be looked at holistically, spanning across overall awareness generation, to engagement, conversion, retention, and monetization. The user segments themselves focused on finding the equilibrium between sellers and buyers as well as b2c vs b2b segments. This, in returned, ensured proper equilibrium between both entities, resulting in a vibrant marketplace where demand and supply met “eye to eye”.

This is where your analytics can play an important role in helping you navigate the waters across both, the acquisition and retention funnels. In addition to our own online metrics tools, I always found it extremely useful to map out our overall communication efforts across all channels. If we were doing PR or other on-ground activations, we could suddenly go back and start seeing patterns between overall awareness generation as well as actual engagement through organic visits and non-paid media.

It’s by no means rocket science, as long as you’ve established clear end action goals that you are monitoring. Is the registration process simple enough? What is our 30-day retention rate? Are the listers able to list their items at ease but with high quality? Do the items get sold? How often are they coming back?

At dubizzle, one of the key metrics we used to look at was what we called “ruffians” (another way of pronouncing RFNS, which meant returning, free, non SEO traffic). This metric was particularly important to us, as it signified a “quality returning visit” and was a good indication for true organic, non-prompted retention. For individual transactions, it was pretty clear that you had to ensure (and reward) for the quality for the listing (to get more views and leads) and simultaneously, ensure that the listing to sales cycle was as rapid as possible. If an item has been listed for several days and isn’t getting leads, we could trigger automated emails to our users, where we prompted an edit/enhancement to the listing (ad a better description/copy text or insert additional images, etc. If the quality score of the listing was good, then perhaps the price was wrong and we educated the seller with average sales prices for similar items he or she was trying to sell.

 

Q: Do you think your strategy can be replicated today?

Arto Joensuu: I believe that these fundamentals continue to remain relevant in today’s time and age. Organizations that are purpose driven and have their minds set across the entire value chain tend to find their way. I guess the important thing is to stay true to your “why” and not let that get diluted along the way.

When it comes to horizontal marketplaces, I think the same rules still apply in terms of getting the critical mass onto your platform and later monetizing and expanding into b2b verticals. Of course, in today’s time and age, we are seeing the emergence of more and more niche driven marketplaces, where volumes of users are not necessarily large but the engagement and the volume of transactions/retention are extremely high. A big enabler for this has been companies like Sharetribe, that in a similar manner to Automattic (the creators of WordPress) enable marketplaces around niche interests to become mainstream. We can see how social media is constantly evolving from niche players emerging and later getting acquired by larger players and becoming mainstream medias. The same early adopter audiences move on to new niche communities while the masses flock to the services orchestrated by the big internet players. The evolution is constant, and the overall classifieds industry is not immune to this disruption revolution around the corner. Big players need to find new ways to evolve the classifieds marketplace and overall core loop involved.

 

Q: One of your key responsibilities was to expand dubizzle geographically, can you share how you succeeded with the geographical expansions?

Arto Joensuu: Our regional expansion was a combination of sleepless nights, insane turnaround times, 2 political revolutions, a lot of Red Bull and an end result which sparked a nationwide movement. In other words, welcome to Egypt, basha!

In retrospect, (it’s always easy to be the Monday morning quarterback) there were a lot of elements that made our Egypt expansion a success. Here are a few things I personally felt that made a true difference for us.

1. Decide to win.
We knew that another large classifieds player was also entering the Egyptian market and we had very little time to turn things around. This meant that we needed to put our full weight behind this initiative and our previously crafted brand work really served us well in this context. A highly aligned team can make all the difference in the world when things get tough.

2. Acquire the sellers.
I guess we all know that classifieds marketplaces stride on large volumes of high-quality content. Content attracts buyers and buyers means successful re-distribution if items that people have fallen out of love with. We focused quite strongly on the general items for sale segment, meaning everyday household items that people no longer needed. A great way to do this is to introduce an element of lifestyle-driven marketing into the mix, where the seller represents an aspirational target group that in return attracts buyers into the marketplace. For example, a young family that is selling a baby carriage that their child either outgrew or was originally given as a “double gift” brings people in similar life stages together and can even result in new friendships being formed.

3. Become the talk of the town.
As dubizzle entered the Egyptian market, we wanted to create and engage in an overall society-wide conversation about the second-hand economy. In Egypt alone, the value of unused items people had in their homes was equivalent to the entire GDP of Sweden. If people would take action and sell the items they have fallen out of love with, more money is re-fueled into the economy hence improving the overall economy in the country. This meant an overall paradigm shift in the definitions of ownership as well as the new vs second hand thought process. By tapping into a universal topic that had an impact on the whole society, our dubizzle GM was a frequent visitor to talk shows where larger Egypt wide topics were discussed. Becoming the talk of the town isn’t about creating a clever marketing campaign, it’s really about creating a movement.

 

Q: How do you think marketplaces need to approach geographical expansions today?

Arto Joensuu: There’s always been active dialogue around the need to localize vs. going to market with a more globally led brand identity. This topic goes beyond brand identity, however. At dubizzle, we soon realized that our mainly desktop driven English site for the UAE would not cut it as we planned to enter mainly Arabic speaking markets. We needed to build our MENA sites from scratch, taking a mobile and Arabic first approach to the whole process. At the time, we realized that for example, Arabic font libraries that were mobile (or even desktop) optimized were scarce and in many instances illegible on mobile devices. Before thinking about a localized marketing campaign, we need to fix the basics and develop a user experience that didn’t get in the way of our core loop. We also noted things like email vs mobile number penetration across emerging markets. It was basically useless to have an email sign up and we went directly to mobile number-based registration methods as these were the common standard across the region. We were fortunate that these changes were made before we entered the Egyptian market with a bang. By having the fundamentals in place, we could shift our focus towards overall activation and awareness building.

 

Q: In marketing, it’s important to have a consistent tone and imagery. With a marketplace, you heavily rely on user-generated content. How do you ensure that the content submitted by users adheres to, or at least doesn’t break, your tone of voice?

Arto Joensuu: Content quality is a common theme/struggle for any classifieds business. The overall listing process is an obvious area where good content can be encouraged (and incentivized by for example giving the listing higher visibility within the marketplace). The move to mobile/app-based solutions allows for easier image uploading, but also the potential addition of other metadata that can make the discoverability and look & feel of the listing more attractive. I think that also the tone of voice across the overall category structure and content fields can have a big impact on the overall end quality of the listing itself. In recent years, we’ve seen market entrants into the classifieds space (such as Soma), who have taken the individual listing into a more shareable/interactive product card format. What this does, is that the product starts having a life of its own and can be embedded and promoted, liked and shared across multiple venues. This forces the content to be good if it wants to have legs to spread (and live beyond one-off transactions).

 

Q: How do you make sure that your front page, or first search page, is in line with the brand you want to portray?

Arto Joensuu: This is quite a large topic in itself but obviously, one dimension that differentiates a classifieds marketplace from a more traditional e-commerce marketplace is the overall transaction category structure. For ex. when you enter an e-commerce site, you’re pretty much already certainly looking for a specific item (or category of items in that segment). The overall search process is more structured, and the items displayed usually start from that user-generated search pattern. With classifieds, the process can be similar to an e-commerce play (you go in and search specifically) but there’s also a profound layer of random discovery. For example, you didn’t necessarily know that a 1979 Darth Vader helmet was for sale but you discover it by chance. The home page can serve this endless treasure hunt of discoveries by bringing high-quality content to the home page instead of immediately driving your users down the traditional search path. A lot of the mobile/app driven classifieds spin-offs are leveraging this in quite smart ways and the discoverability along with smart geo and metadata can make the overall user experience a unique one. The brand is the experience and this touches every aspect of the service.

 

Q: You’ve also helped marketplaces improve their lead generation. Is SEO still important? and do you have any tips on how marketplaces can improve their lead generation?

Arto Joensuu: I think SEO and SMO both continue to play an important role in overall lead generation. If you think of giants like YouTube, a big part of their content gets consumed outside of their own site/app via embedded links on other social channels and websites. This speaks to the fact that lead generation needs to evolve beyond optimizing what’s on your site and thinking about ways in which your user-generated content gets extra mileage through social recognition and distribution.

 

Q: Do you know of any new creative ways to improve SEO and lead generation?

Arto Joensuu: With reference to Soma’s interactive product card, if an item has a wider lifespan than an individual interaction, it starts accumulating equity throughout its entire lifespan. Here’s where I think the next big thing in classifieds and e-commerce could potentially reside in. Picture this scenario:

When an e-commerce player sells a new mobile phone, they have the transactional data of the one-off sale, after which the item pretty much disappears off the digital grid until the owner decides to sell it on a classifieds site. When the item is posted online, the classifieds player gets a small piece of the item lifetime, as they know when the item was sold and for what price. Then again, it goes off the grid until it’s maybe sold for the 3rd time or disposed for recycling.

What if these items had a digital identity (aka an interactive product card) from the get-go? This would fundamentally bridge the gap between e-commerce and classifieds and could even extend into the whole sustainability piece at the end of life stages of the manufactured device. Along the way, item sale and resale value would be tracked, the item would form “link bait” of its own, as the IIC could be liked, shared or promoted by man and machine alike. Manufacturers would get valuable information on their product resale value, quality, “life expectancy” and distribution. Classified players would basically have multiple touchpoints to the value chain as technically the item is never deleted once sold. This is something I believe has immense potential in the future.

 

Q: When is it important to optimize monetization? and what are the ‘must have components’ in a successful monetization strategy?

Arto Joensuu: Monetization basically contains two dimensions, the b2b, and b2c sides. I guess that with any of the 2, it really comes down to a healthy equilibrium of buyers vs sellers. Traditionally it was about getting the needed b2c sellers and buyers onto the platform, which in return would bring the b2b players onboard and this would be the first segment that you monetize. Once you’ve become the clear market leader, the b2c monetization kicks in towards the later stage of monetization. The industry has obviously evolved from this and you start seeing rapid verticalization of certain segments (ex. property, cars, jobs) instead of pursuing with a unified horizontal classifieds approach only. You can also start seeing early stage monetization happening with more niche classifieds players where highly specialized b2c groups start forming around specific interest areas like fashion, watches, collectibles, etc.

Perhaps one of the toughest transitions in the abovementioned monetization streams is related to going from b2b monetization to b2c side monetization. There’s always an element of fear that by putting up a paywall to a b2c category, you will lose traffic and users to a competitor. When dubizzle decided to monetize its cars section on the b2c side, the team spent a lot of time evaluating the overall transition and ultimately, the overall used car ecosystem/landscape within the UAE. What we discovered quickly is that b2c users listing their cars on the marketplace received substantially more leads than the other platforms and that the end user was (on average) able to sell their car at a higher price than by going through a 3rd party. We also ran a series of A/B tests to identify the right price point for the listing fee and mapped out the various payment solution providers that would fit our user needs. In the end, the launch was successful and paved the road towards monetizing across other categories as well. In the end, I think it’s really about perceived value for your offering and if the marketplace works, people are ready to pay a small fee to the marketplace enabler.

 

Q: Trust is key for a successful marketplace, what’s your view on trust and how do you think marketplaces can build a safe platform?

Arto Joensuu: Trust is important. Of course, the definition of trust is probably universal to a degree but the ways in which you address this can vary greatly from country to country. There’s always been a debate about whether buyer profiles should also be registered/verified profiles to avoid fraud. Should the facilitator act as an escrow that holds onto the money until the transaction is completed and validated by both parties. Can we increase trust by having seller reviews and ratings etc. etc. Customer support and overall communication obviously play an important role here and educating the user based on potential pitfalls is very important. Companies such as the one you represent play an important role in preventing fraudulent or bad listings to the marketplace. I don’t personally have a silver bullet answer to the whole equation, to be honest. Maybe you should answer this question instead 😉

 

Q: How can you differentiate yourself as a marketplace in 2019, when there are a ton of new marketplaces popping up?

Arto Joensuu: I think this comes back to the “WHY” your company exists and what’s the deeper substance behind what you are trying to achieve. People don’t buy what you do, they buy why you do it and having this clear vision filter across everything you do creates differentiation. This might also mean that you need to be willing to sacrifice your current cash cows (and create new ones in the long run) by continuously innovating and finding ways to disrupt existing business models. Perhaps a point to make here is that it’s not about disruption “for the sake of disruption” but instead, finding new ways of bringing your “WHY” to life. Think about Kodak. If their true purpose was to enable people to capture their most precious moments in life and re-live them through pictures, they should have been all over the digital camera (which they actually invented). Instead of embracing this new way of bringing their purpose to life, they never capitalized on this new innovation because (at least in the short run) it would cannibalize their film business.

Arto Joensuu

Arto Joensuu is a digital change agent with over 20 years of professional experience across startups as well as large multinational corporations. His professional expertise lies within a profound understanding of the digital landscape and its impact on companies both small and large. Whether it’s about leading a large corporation into the digital era, or helping startups cross the tipping point, Joensuu has been there in the trenches and has the battle scars to prove it. Throughout his career, he has held several leadership positions, ranging from pioneering in digital/mobile marketing at iobox/Terra Mobile during the late 90’s to spearheading the company-wide digital strategy and execution at Nokia. At dubizzle.com, Joensuu spearheaded a transformational re-branding initiative, which had profoundly positive implications across the entire company. This initiative led to a streamlined vision, common set of values and a cultural transformation that could serve as a platform for growth across the organization. He later continued as dubizzle’s CEO, leading the company’s monetization efforts, regional expansion, operational alignment with majority owner Naspers, as well as facilitating the early stage growth of classifieds spin-off Shedd. Today, Arto Joensuu is the founder and CEO of Working in Digital, a network of digital change agents that invest in early stage startups and actively support these organizations as non-executive directors. Current portfolio consists of:

  • Soma: a disruptive blockchain based classifieds platform.
  • Fuzu: an innovative learning/job platform for the emerging markets.
  • Golf GameBook: the driving force behind the digitalization of golf.
  • Sports Travel Group: providing unique travel experiences for golfers around the world.

Think the big tech players don’t tackle content moderation in the same way as your classifieds business? Think again! At a recent European Parliament conference, leading lights from some of the world’s best-known technology companies gathered to share their ideas, and challenges. But exactly what are they up against and how do they resolve issues?

No doubt about it: content moderation is a big issue – for classifieds sites, as well as content and social platforms. In fact, anywhere that users generate content online, actions must be taken to ensure compliance.

This applies to both small businesses as well as to the likes of Facebook, Medium, Wikipedia, Vimeo, Snapchat, and Google – which became quite clear back in February when these tech giants (and a host of others) attended the Digital Agenda Intergroup’s ‘Content Moderation & Removal At Scale’ conference, held at the European Parliament in Brussels on 5 February 2019.

What came out of the meeting was a frank and insightful discussion of free speech, the need to prevent discrimination and abuse, and the need to balance copyright infringement with business sensibilities – discussions that any online platform can easily relate to.

Balancing free speech with best practice

The conference, chaired by Dutch MEP, Marietje Schaake of the Digital Agenda Intergroup, was an opportunity to explore how internet companies develop and implement internal content moderation rules and policies.

Key issues included the challenges of moderating and removing illegal and controversial user-generated content – including hate speech, terrorist content, disinformation, and copyright infringing material – whilst ensuring that people’s rights and freedoms are protected and respected.

As well as giving participants an opportunity to share insights on effectively managing content moderation, Ms. Schaake also expressed her desire to better understand what big companies are doing – what capacity they have, what legal basis, terms of use, and what their own criteria for taking down content were.

Or, as Eric Goldman, Professor of Law at the High-Tech Law Institute, Santa Clara University, put it ‘addressing the culture of silence on the operational consequences of content moderation’.

Addressing the status quo

Given the diverse array of speakers invited, and the sheer difference in the types of platforms they represented, it’s fair to say that their challenges, while inherently similar, manifest in different ways.

For example, Snapchat offers two main modes on its platform. The first is a person-to-person message service, and the other – Discover mode – allows content to be broadcast more widely. Both types of content need to be moderated in very different ways. And even though Snapchat content is ephemeral and the vast majority of it disappears within a 24-hour period, the team aims to remove anything that contravenes its policies within two hours.

By contrast, Medium – an exclusively editorial platform – relies on professional, commissioned, and user-generated content. But though the latter only needs to be moderated – that doesn’t necessarily make the task of doing so any easier. Medium relies on community participation as well as its own intelligence to moderate.

A massive resource like Wikipedia, which relies on community efforts to contribute information – rely on the same communities to create the policies by which they abide. And given that the vast wealth of information is available in 300 different language versions, there’s also some local flexibility in how these policies are upheld.

Given the 2 billion users it serves, Facebook offers a well-organized approach to content moderation; tasking several teams with different trust and safety responsibilities. Firstly, there’s the Content Policy team, who develop global policies – the community standards, which outline what is and is not allowed on Facebook. Secondly, the Community Operations team is charged with enforcing community standards. Thirdly, the Engineering & Product Team build the tools needed to identify and remove content quickly.

In a similar way, Google’s moderation efforts are equally as wide-reaching as Facebook. As you’d expect, Google has a diverse and multilingual team of product and policy specialists – over 10,000 people who work around the clock, tackling everything from malware, financial fraud and spam, to violent extremism, child safety, harassment, and hate speech.

What was interesting here were the very different approaches taken by companies experiencing the same problems. In a similar way that smaller sites would address user-generated content, the way in which each larger platform assumes responsibility for UGC differs, which has an impact on the stances and actions each one takes.

Agenda item 1: Illegal content – Inc. terrorist content & hate speech

One of the key topics the event addressed was the role content moderation plays in deterring and removing illegal and terrorist content, as well as hate speech – issues that are starting to impact classifieds businesses too. However, as discussions unfolded it seemed that often what should be removed is not as clear cut as many might imagine.

All of the representatives spoke of wanting to offer freedom of speech and expression – taking into account the fact that things like irony and satire can mimic something harmful in a subversive way.

Snapchat’s Global Head of Trust, Agatha Baldwin, reinforced this idea by stating that ‘context matters’ where legal content and hate speech are concerned. “Taking into account the context of a situation, when it’s reported and how it’s reported, help you determine what the right action is.”

Interestingly, she also admitted that Snapchat doesn’t tend to be affected greatly by terrorist content – unlike Google which, in one quarter of 2017 alone, removed 160,000 pieces of violent extremist content.

In discussing the many ways in which the internet giant curbs extremist activity, Google’s EMEA Head of Trust & Safety, Jim Gray, referred to Google’s Redirect program – which uses Adwords targeting tools and curated YouTube videos to confront online radicalization by redirecting those looking for this type of content.

Facebook’s stance on hate speech is, again, to exercise caution and interpret context. However, one of the other reasons they’ve gone to such efforts to engage a range of individual country and language experts in their content moderation efforts – by recruiting them to their Content Policy and Community Operations teams – is to ensure they uphold the rule of law within each nation they operate in.

However, as Thomas Myrup Kristensen – Managing Director at Facebook’s Brussels office – explained the proactive removal of content is another key priority; citing that in 99% of cases, given the size and expertise of Facebook’s moderation teams, they’re now able to remove content uploaded by groups such as Al-Qaeda and ISIS before it’s even published.

Agenda item 2: Copyright & trademark infringement

The second topic of discussion was the issue of copyright, and again it was particularly interesting to understand how large tech businesses curating very different types of content tackle the inherent challenges in similar ways – as each other and smaller sites.

Despite being a leading software developer community and code repository, the vast majority of copyrighted content on GitHub poses no infringement issues, according to Tal Niv, GitHub’s Vice President, Law and Policy. This is largely down to the work developers do to make sure that they have the appropriate permissions to do build software together.

However, when copyright infringement is identified, a ‘notice and takedown system’ comes into play – meaning the source needs to be verified, which is often a back-and-forth process involving several individuals, mostly developers, who review content. But, as a lot of projects are multilayered, the main difficulty lies in unraveling and understanding each contribution’s individual legal status.

Dimitar Dimitrov, EU Representative, at Wikimedia (Wikipedia’s parent company) outlined a similar way in which his organization relies on its volunteer community to moderate copyright infringement. Giving the example of Wikimedia’s media archive, he explained how the service provides public domain and freely licensed images to Wikipedia and other services.

About a million images are uploaded every six weeks, and they’re moderated by volunteers – patrollers – who can nominate files for deletion if they believe there’s any copyright violation. They can then put it forward for ‘Speedy Deletion’ for very obvious copyright infringement, or ‘Regular Deletion’ which begins a seven-day open discussion period (which anyone can participate in) after which a decision to delete or keep it takes place.

Citing further examples, Mr. Dimitrov recalled a drawing used on the site that was taken from a public domain book, published in 1926. While the book’s author had died some time ago, it turned out the drawing was made by someone else, who’d died in 1980 – meaning that the specific asset was still under copyright and had to be removed from the site.

Vimeo’s Sean McGilvray – the video platform’s Director of Legal Affairs in its Trust & Safety team – addressed trademark infringement complaints, noting that these often took a lot of time to resolve because there’s no real structured notice and takedown regime for these complaints, and so a lot of analysis is often needed to determine if a claim is valid.

On the subject of copyright specifically, Mr. McGilvray referenced Vimeo’s professional user base – musicians, video editors, film directors, choreographers, and more.

As an ad-free platform, Vimeo’s reliant on premium subscriptions, and one of the major issues is that users often upload their work for brands and artists as part of their showreel or portfolio; without obtaining the necessary licenses allowing them to do so.

He noted how to help resolve these issues, Vimeo supports users when their content is taken down – explaining to them how the copyright issues work, and walking them through Vimeo’s responsibilities as a user-generated content platform; whilst giving them all the information they need to ensure the content remains visible and compliant.

Looking ahead to sustainable moderation solutions

There can be no doubt that moderation challenges manifest in different ways and are tackled in numerous ways by tech giants. But the common factor these massively influential businesses share is that they take moderation very seriously and dedicate a lot of time and resources to getting it right for their users.

Ultimately, there continues to be a lack of clarity between what is illegal – according to the law of the land – and what constitutes controversial content. That’s why trying to maintain a balance between free speech, controversial content, and removing anything that’s hateful, radical, or indecent is an ongoing battle.

However, as these discussions demonstrate, no single solution can win in isolation. More and more companies are looking to a combination of machine and human moderation to address their content moderation challenges. And this combined effort is crucial. Machines work quickly and at scale, and people can make decisions based on context and culture.

Whatever size of business you are – from a niche classified site covering a local market to a multinational content platform – no-one knows your users better than you. That’s why it’s so critical that companies of all shapes and sizes continue to work towards best practice goals.

As Kristie Canegallo, Vice President, Trust and Safety, Google said “We’ll never claim to have all the answers to these issues. But we are committed to doing our part.”

Want to learn more about liability and the main takeaways from the content moderation at scale conference? Check out our interview with Eric Goldman.