“Organized crime absolutely tore several marketplaces up and used them as their own little playgrounds. Once buyers started getting hurt, we started seeing the government step in.”
– Travis Dawson, Senior Product Director from StockX
Until recently, online marketplaces were treated as ecommerce entities, with regulations that focused on the buyer side. In that “wild west” era, the seller side didn’t really exist, and marketplaces were casually ignored. That has changed. Organized crime saw marketplaces as an opportunity to do business their way, and made a few big marketplaces into playgrounds for illicit activity. Consumers paid the price (and then some). And regulators got involved.
Regulators are now set on a goal of rebuilding trust in marketplaces, with initiatives to make them a safer place to do business. And that includes taking a closer look at seller behavior. ShopSafe and DSA are examples of the government getting into the business of regulating marketplaces to protect consumers.
The bottom line is, whether a marketplace is aware of illicit activity or not, regulators will be holding them accountable. It’s time to prepare.
EverC team has been tracking this trend, and we’re excited to be able to share this recent conversation that one of our experts, Anna Pogreb, had with Travis Dawson, Senior Product Director from StockX.