What is an online marketplace (also known as an e-mall) and how is it different from your usual webstores out there? The key difference is the role an online marketplace plays; more importantly, how its raison d'etre as the go-between benefits sellers and buyers.
It definitely is a mammoth task, taking on the role of an online marketplace. This therefore begets the question: How does an online marketplace safeguard its own interest, at the same time ensuring that both sellers and buyers are protected against fraud, given its recent rise in Malaysia?
According to a whitepaper by the Online Fraud Guide by Attitude, Malaysia is one of the countries at high risk for online fraud. Closer to home, the Malaysia Computer Emergency Response Team (or MyCERT as it is commonly known) reported a total of 3,257 online fraud cases in Malaysia in 2015.
With that in consideration, here are the top four measures reputable online marketplaces employ to safeguard sellers and buyers:
1. Screen, screen, screen
Interested sellers who submit an application to sell on an online marketplace - for example on 11street - will find themselves at the centre of a thorough screening process. The online marketplace will ask a series of questions to verify the identity of the potential seller, which requires the latter to produce documents that attest to their existence.
Upon approval, the next stage involves consistent scrutinising from 11street to ensure that the sellers actually do sell the products they have registered. This preventive measure that 11street has adopted is a means to vet through sellers who may, at some point, fall off course and decide to challenge the system.
2. Buyers, practise due diligence
There are buyers out there who prefer to make an online purchase anonymously. While it helps conceal their identity from the World Wide Web, it may become one of the major deterrents for the marketplace player to contact them immediately in the event of a suspicious transaction or non-delivery of item(s) purchased.
Given the security standards online marketplace like 11street has implemented onto its platform, buyers are advised to provide as accurate an information as possible for the e-mall to safeguard the interest of their accounts. After all, for every successful relationship to work, each party has to practise due diligence.
3. We're watching you
Telenor Group Study's recent research has revealed that on average, the financial loss from Internet scams sums up to RM7,050. 11street takes every precautionary step to lower the risks of fraud on its platform, which explains its internal transaction auditing system. It works by monitoring each incoming transaction, analysing the behavioural pattern before crossing out dubious dealings.
This monitoring system is a sophisticated fraud risk model, and is able to weed out fraudsters to present optimal protection to both 11street's buyers and sellers.
On top of that, 11street also deploys the Escrow system, which is one of the most effective ways to oversee all transactions. The system gives shoppers the flexibility to return their purchases within a reasonable period of time, and works by dispersing payment to sellers only after the buyers have received their purchases in good condition. If the products received do not meet the buyers' expectations, the customer service team from 11street will review the matter at hand, before coming up with a suggestion. This way, buyers' interests are protected, and sellers have to work harder at ensuring that their products are of good quality.
4. Safe shopping for buyers
Steadfast supervision aside, online marketplaces need to shield the interests of its buyers and ensure that every sale transaction is a safe one for buyers. Partnering reputable payment gateways and banks is a major step that online marketplace such as 11street takes to protect buyers in ensuring that their personal and financial information registered on its platform is safe. This is in line with 11street's endeavour to provide a good and memorable experience on its platform, every time. These payment gateways are distinguished in their respective fields, and have invested heavily in world class anti-fraud systems, with around-the-clock monitoring.
In conclusion, with e-commerce on the rise in Malaysia, the onus is upon every online marketplace to ensure that their platform is secured to warrant ease-of-mind shopping for all parties. 11street advises all online shoppers to also take their own precautions and practise safe shopping, such as not disclosing their credit card or bank details to anyone, but leverage 11street's platform for a pleasant yet secured online shopping purchase.