Onboarding Global Sellers: Challenges and Opportunities for Online Marketplaces

Geographical Barriers

Onboarding sellers from emerging markets often involves deep knowledge in complex regulations and disparate payment infrastructures. Many primary payment service providers are limited to onboarding sellers from established markets like the US, EU, or Australia. This limitation forces marketplaces to partner with external payout providers to serve sellers in other regions, leading to a fragmented onboarding process and a disjointed seller experience. This issue is particularly pressing as emerging markets like Southeast Asia continue to see rapid growth, making them key regions for expansion​

Managing Providers

Using multiple payment providers to accommodate sellers from different regions complicates the onboarding process. Each provider may have varying requirements, systems, and regulations, creating an administrative burden for marketplaces. This increases operational costs and risks alienating sellers who seek a clear, customer-oriented and hassle-free experience

Seller Expectations

Sellers prefer a direct relationship with marketplaces and expect to be onboarded only once without interacting with multiple payment providers. They also desire maximum control over their payment processes, including the ability to customise payment flows according to their needs. Meeting these expectations is challenging for marketplaces relying on third-party payout providers

Cultural Barriers

Expanding into new markets often means dealing with cultural and language differences. These barriers can complicate communication between the marketplace and sellers, leading to misunderstandings and delays in the onboarding process. For example, certain regions may have different expectations for customer service, payment methods, or product presentation. In regions like Southeast Asia, where languages and cultural practices vary significantly, this challenge is particularly pronounced

Technology Gaps

Many emerging markets lack the technological infrastructure required to support seamless integration with global marketplaces. Sellers in these regions may face difficulties in accessing reliable internet, integrating their local systems with global platforms, or using advanced payment and logistics technologies. This technological gap can slow down the onboarding process and limit the seller’s ability to compete effectively on a global scale

Simplify the Onboarding Process

To minimise friction, online marketplaces should simplify the onboarding process as much as possible. This includes integrating with payment platforms that offer a unified solution capable of handling payouts to sellers in multiple regions. with significant growth expected in regions like North America and Latin America, platforms must prioritise streamlined onboarding to attract and retain high-value sellers​

Leverage API Integration for Seamless Operations

Using a payment gateway with strong API integration capabilities allows marketplaces to embed payment functionalities directly into their platforms. This ensures sellers can manage their financial transactions without leaving the marketplace ecosystem, providing a cohesive and uninterrupted experience

Ensure Compliance and Scalability

As marketplaces expand into new regions, ensuring compliance with local and international financial regulations is crucial. Partnering with a payment provider that holds multiple payment licences worldwide can help streamline compliance processes, including anti-money laundering (AML) and know your customer (KYC) requirements. This is essential for quickly onboarding sellers while maintaining regulatory standards

Localisation Strategies

To overcome cultural and language barriers, marketplaces should adopt localisation strategies. This includes translating onboarding materials into the seller’s native language, offering customer support in multiple languages, and tailoring the onboarding process to align with local customs and business practices. Additionally, understanding and respecting cultural differences in business dealings can significantly enhance the onboarding experience. This approach is particularly beneficial in regions with diverse linguistic and cultural landscapes, such as Southeast Asia​

Invest in Technology and Infrastructure

Marketplaces should invest in technologies that bridge the infrastructure gap for sellers in emerging markets. This can include providing cloud-based tools that are accessible with minimal local infrastructure, offering mobile-friendly platforms, and facilitating the integration of local payment systems with global platforms. Furthermore, investing in infrastructure improvements can help create a more level playing field for sellers from less developed regions​

Partnering with a reliable payment gateway is a strategic move that can significantly enhance the onboarding process for global sellers. Here’s how a payment gateway partner like Transferty can help:

The global online business landscape is rapidly evolving, with cross-border sales presenting both significant opportunities and challenges for online marketplaces. To capitalise on these opportunities, marketplaces must refine their onboarding processes to attract and retain global sellers. By streamlining onboarding, leveraging API integration, ensuring compliance, and partnering with a reliable payment gateway, online marketplaces can overcome the challenges of global seller onboarding and position themselves for sustained growth and success in the global market. Incorporating these strategies will not only improve the seller experience but also enable platforms to tap into the immense potential of global online business, projected to continue its robust growth trajectory over the coming years

• ECDB: “Global eCommerce Market 2024: Market Growth, Top Players & Online Share” 
• J.P. Morgan Research: “Market Outlook 2024” 
• SellersCommerce: “E-commerce Statistics 2024: Essential Insights for Every Marketer”