the Marketplace Manifesto

1. For merchants and customers, by merchants and customers

The marketplace should be operated and governed by an entity ('the operator') whose sole interest is the well-being of merchants and customers. In practice, this means that the marketplace should be operated by a non-profit.

2. Transparency is key

In a marketplace for the people, by the people, transparency is paramount. The entire codebase should be open-source and all policies governing the marketplace should be clearly documented. However, the data of the merchants, including sales data, is considered the property of the merchant and is therefore not disclosed to other parties.

3. The operator owns the space, not the transaction

The operator owns, governs and maintains the marketplace, but has no ownership over the transactions. This means that transactions are directly conducted between merchant and customer. The marketplace facilitates this transaction by offering a standardized payment infrastructure that the merchant can then take ownership of, for example, by linking their paypal account.

Note: This does not necessarily mean that participation in the marketplace is free. Running a marketplace requires resources. As such, it is reasonable for merchants to pay a one-time or re-occurring fee for the right to operate their storefront and/or a fee for publishing a product.

4. Open does not mean lawless

Communities work better under clear rules prohibiting undesired behavior. These rules are created in close collaboration with stakeholders. Actors breaking these rules are given a warning. Continued behavior results in removal.

5. Exposure is not a commodity

All merchants should have an equal chance of getting exposure to customers. Exposure is never sold; no ads or selling favorable search rankings. It is the duty of the operator to guide the customers to their desired product to the best of their ability.

This does not mean that the marketplace is prohibited from having a general storefront advertising certain products or merchants. It is reasonable to highlight the best (personalized) deals as this benefits merchant and customer alike. However, these spots are awarded based on merit, not because of a financial incentive to the operator.

6. A sale is an agreement that transcends the marketplace

A transaction between a customer and a merchant should be valid beyond the marketplace. This means that if a product was purchased on a different marketplace, the purchase of that product should also be acknowledged in this marketplace. A practical example to illustrate this principle: a user who bought a game on steam should be able to use the receipt to redeem that same game on this marketplace. This goes hand-in-hand with the principle that a transaction is conducted between the customer and the merchant, not between the customer and the marketplace.

Note that a very strict interpretation of the product is required. A digital product for one operating system or hardware platform is not necessarily the same as the equivalent product for another system or platform. Similarly, inclusion of a digital product as part of a subscription is not the same as the outright purchase of that product.

Conclusion: A farmer's market, not a supermarket

The analogy that best captures the essense of this manifesto is a farmer's market; an open space where merchants transact with customers directly. The marketplace is nothing more than the infrastructure fascilitating this process.

This stands in stark contrast to the leading digital marketplaces, which are more akin to a supermarket: they make the rules, decide which products to promote and they take a cut of every transaction. Their objective is to make as much money as possible, often by exploiting their monopolistic power to keep customers within their ecosystem.

disclaimer: The analogy of a farmer's market and a supermarket is an imperfect one, but I have yet to find one that illustrates these principles more vividly.