A marketplace seller is a business or individual that offers products or services through a third-party digital marketplace. The seller may control sourcing and inventory while the platform controls listing rules, checkout, customer access or fulfillment options.
What responsibilities can remain with the seller?
- Product legality and listing accuracy
- Inventory and sourcing
- Pricing and promotions within platform rules
- Order fulfillment or inventory delivery to the platform
- Returns, warranties and customer service
- Tax, records and supplier documentation
Seller vs. merchant of record
The marketplace seller offers the product. The merchant of record is the party legally responsible for the sale transaction, payment and specified tax or refund obligations. Depending on the platform model, these may be the same or different parties.
How should profitability be measured?
Start with selling price and subtract product cost, marketplace commission, fulfillment, advertising, payment, storage, returns and taxes borne by the seller. Payout amount alone can hide accrued charges.
What should be reconciled?
Match orders, platform fees, refunds, chargebacks, withholding, taxes and payout deposits. Retain platform statements and map each adjustment to the underlying order.
What risks should be monitored?
Watch account suspension, counterfeit claims, unauthorized resellers, inventory loss, review manipulation, fee changes and concentration in one platform. Maintain customer and supplier records outside the marketplace where permitted.
