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> Just like a traditional marketplace, an API-as-a-marketplace has two sides: suppliers and buyers. When I make a payment on a site with stripe (my transaction
by floatrock 6y ago
> Just like a traditional marketplace, an API-as-a-marketplace has two sides: suppliers and buyers.
When I make a payment on a site with stripe (my transaction-in-need-of-payment-processing being the "demand" side), there's not really a pool of "supply side" vendors I'm trying to be matched with... I'm just interested in knowing that my money is going to the business I'm checking out with.
To concoct this into an example that's more of a marketplace:
- the business owner needs a payment processor for people checking out like me -- payment processing is the service
- imagine that transaction fees varied based on the nature of the individual transaction (imagine say an individual <$1 visa transaction is different from a $<1 mc transaction is different from a $1-$10 preferred-vendor visa transaction or something hypothetical like that)
- there's multiple payment processors that offer various fees -- Stripe, Braintree, Paypal, etc.
The marketplace solution now is the one that matches the demand side (a $1-$10 preferred-vendor visa transaction) to the payment processor that makes most sense (supply side) for each individual transaction.
Obviously payment processing works different than this. That's why Stripe is an API, not an API-as-a-marketplace.
Now, replace "payment processing" with "shipping" and "$1-$10 visa transaction" with "1-10lb package going to Somewheretown"... now you have a situation that sounds like the real world. That's the niche the article says Shippo is filling.