With online marketplaces booming in recent years, the need to improve the payment experience for buyers and sellers has grown more competitive. 

As a marketplace payment solution for hundreds of innovative companies, we’ve identified several common pain points that impact this industry:

  1. Business growth, which should be a good thing, creates unsustainable payment processes and untenable fees (or both) that can that prohibit growth and cut into profits
  2. Outdated and complex API documentation makes integrating with a payments API challenging and time-consuming
  3. Transfer timing of payments doesn’t align with the business goals and operations 

This blog post uses online marketplace case studies to describe how several marketplaces improved their payment solution by integrating with Dwolla’s ACH API. 

How to Find A Quality Solution for Improving Online Marketplace Payments

Marketplaces are choosing to integrate with an ACH payment API for various reasons, from ease of integration to the ability to automate manual processes. Oftentimes, these businesses look for a quality marketplace payment solution that can:

  • Seamlessly integrate with their existing payments process and technical infrastructure
  • Allow users to easily attach a bank account during the onboarding process 
  • Update users with status updates about a transaction 

We’ve included five online marketplace case studies that paint a clearer picture of what to expect when searching for and operating with Dwolla’s ACH payment API.

1. GOAT – A Marketplace for High-End Shoes

GOAT ACH Payouts

High-end and luxury sneaker marketplace GOAT allows sellers to list certified, authentic sneakers for sale on its platform. 

As transaction volumes increased, GOAT needed to improve its payment solution to offer faster payouts for its sellers at a sustainable price point for the business and reduce the number of support tickets. 

“It got so bad that we began using a credit card to accelerate payouts,” GOAT Co-Founder Eddy Lu says. “When you’re a marketplace, sacrificing two to three percent of your profit margin to maintain a user experience that you don’t even control is just bad business.”

The GOAT team chose to integrate Dwolla’s ACH API and saw an immediate benefit. With a simplified funds flow and better notifications for sellers to know when they are being paid, GOAT’s cash-out-related support tickets decreased by 80% and time to resolution decreased by 50%.

Read the Marketplace Case Study

2. GetMyBoat – A Boat Rental Marketplace

GetMyBoat ACH Payouts

GetMyBoat is an online marketplace that connects boat owners with those looking to rent boats of various sizes around the world.

For payments in the United States, the GetMyBoat team compared eight different payment integration options and chose Dwolla because of its modern, up-to-date ACH API and accompanying documentation.

GetMyBoat integrated Dwolla’s scalable, RESTful API in fewer than 14 days to deliver numerous daily payouts to its large and growing base of boat owners. Their team enabled automated, event-driven notifications and uses a simple administrative tool to help manage payout operations. 

“Our business transactions have seen tremendous growth monthly and quarterly, and I want to say the ease of making payments remains the same with Dwolla,” GetMyBoat COO Bryan Petro says. “It takes the same amount of effort to make a payment to one person or 1,000 people.”

Read the Marketplace Case Study

3. Tophatter – E-commerce Marketplace

Tophatter ACH Payouts

Tophatter is an e-commerce marketplace that allows merchants to sell multiple items in a short amount of time. By offering a one-of-a-kind shopping experience, shoppers compete in 90-second auctions to potentially win huge savings on products from jewelry, electronics, health and beauty equipment. 

Using Dwolla as its online marketplace payments solution, Tophatter can offer an efficient payout process to its merchants for the goods they sell; funds are sent directly to an attached bank account. 

“The time to value with Dwolla’s implementation was incredible. It allowed us to get to market much faster than we anticipated,” Tophatter Director of Trust and Safety Charlie Spencer says.

Online marketplaces come in many different shapes and sizes, serving different industries and markets but they have one thing in common: they need to move money efficiently. Electronic payments, offered by Dwolla, have helped these and numerous other marketplaces thrive in an increasingly competitive landscape.


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