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  1. #1
    Junior Member
    Join Date
    Aug 2011
    Member #
    Hi there,

    I'm currently in the process of setting up a new business. Without giving too much away my website will essentially be a marketplace between buyers and sellers. It is a reverse auction where buyers can receive quotes from several suppliers for a service and the buyer then orders their preferred supplier by paying on our website.

    However, we have a dilemma. How do we keep buyers from interacting with suppliers offline and trying to get a better deal in the process? We are charging commission for bringing the buyer to the supplier. So if the supplier charges 500 for their service then we will take a percentage commission (e.g. - 12%). However, the buyer will be able to see a list of all the suppliers that tendered. At the moment we don't really have a plan in place from preventing the buyer from going off our website and ringing the supplier directly in order to get a better deal.

    Does anyone have any suggestions on how we can prevent (as much as possible) this from happening? Any advice or help would be greatly appreciated.


  3. #2
    Unpaid WDF Intern TheGAME1264's Avatar
    Join Date
    Dec 2002
    Not from USA
    Member #
    2784 times
    Don't reveal supplier contact info. Or call them "Supplier 1", "Supplier 2", "Supplier 3", whatever. That's one way to handle it.

    Another way is offering some sort of escrow service where the buyer gets what (s)he wants and the seller gets what (s)he wants.

    Another thing you can do is have a clause in whatever agreements you have (buyer/seller) that indicates that the buyer and seller won't negotiate behind your back.

    There's really nothing that would work 100% of the time, though. You just have to put up as many things as possible that would encourage people to use your service and discourage people from cutting a backdoor deal. I know it's vague, but I really can't think of a better answer.
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