How to Improve on Existing Marketplaces by Adding a Layer of Trust

Learn how to better the competition by layering on levels of trust in your online marketplace.

Ready? Build a trustworthy online community! So what would you do? What concrete steps would you take? We're about to give you three.

So, why focus on how to add trust to your online marketplace?

  • To protect against fraud. Adding a layer of trust can help prevent fraudulent activity in your online marketplace. Fraud damages your platform's reputation and leads to a loss of confidence from customers.
  • To increase customer satisfaction. When your customers feel confident in an online marketplace, they are more likely to have a positive experience and continue using the platform.
  • To encourage sellers to join. Trust is essential for your sellers to feel comfortable offering their products or services on the platform. By adding a layer of trust, your online marketplace can attract more sellers and offer customers a broader range of products and services.


Uber added a trust added a layer of trust to its platform through the verification of its drivers. Given the nature of ridesharing services, safety is an essential aspect of Uber's operations.

Uber added a trust added a layer of trust to its platform through the verification of its drivers. Given the nature of ridesharing services, safety is an essential aspect of Uber's operations.

How to Improve on Existing Marketplaces by Adding a Layer of Trust

Uber requires all drivers and delivery people to provide identity verification documents and other information when creating an account. They may also be asked to take a selfie to confirm their identity and must update their records if they expire.

Additionally, Uber drivers must pass a background check through the National Crime Check. The background check includes a Motor Vehicle Report and a Criminal Background Check.

All this makes the ridesharing platform more trustworthy.

Similarly, another platform that added "trustworthiness" (through a vetting process) is TaskRabbit.

TaskRabbit is a platform that links individuals with freelancers in the local area who can help with tasks such as cleaning, moving, and handyman services. Given the nature of services offered in the platform, where taskers often have to visit a client's home, TaskRabbit takes safety seriously.

TaskRabbit is a platform that links individuals with freelancers in the local area who can help with tasks such as cleaning, moving, and handyman services. Given the nature of services offered in the platform, where taskers often have to visit a client's home, TaskRabbit takes safety seriously.

How to Improve on Existing Marketplaces by Adding a Layer of Trust
Before joining the TaskRabbit community, all United States Taskers must undergo a thorough screening process, including passing both an identity check and a criminal background check.

The criminal background check looks for information from national, local, and sex offender databases.

Additionally, taskers have to provide proof of their skills and experience.

TaskRabbit also has a system where clients can leave reviews for Taskers, helping to build trust and ensure that only high-quality professionals can use the platform.

TaskRabbit also has a system where clients can leave reviews for Taskers, helping to build trust and ensure that only high-quality professionals can use the platform.

Enough for examples; here are three "trust" signals to focus on for your online marketplace platform.

How to Elevate Trust in Your Marketplace Through Thorough Checking

One way to the simplest ways to improve on solutions out there is by adding a layer of trust in your online marketplace, namely by vetting the providers on the platform.  

The vetting process is important because verifying user credentials boosts customer loyalty.

By verifying, your online marketplace platform also ensures that the people selling goods and services are who they say they are. And that they are qualified and capable of fulfilling the orders they receive.

By verifying, your online marketplace platform also ensures that the people selling goods and services are who they say they are. And that they are qualified and capable of fulfilling the orders they receive.

You can do the vetting process by verifying sellers' identities and credentials and requiring them to follow specific guidelines to ensure that they are reputable vendors.

If your online marketplace verifies the identities and credentials of your users during onboarding, you'll establish trust in your community.

The stats back it up:

Honor Care does "trust" well with its vetting process.

Honor Care does "trust" well with its vetting process.

Honor Care has an efficient vetting process. Honor is the world's largest network for home care services. Caregivers who wish to join the platform go through a series of onboarding tasks that start with the following:

  • A complete background check             
  • Filled in onboarding paperwork     
  • A read-through of the Key Policy and Care Pro Handbook
  • A submission of I-9 documents
  • Completed Transfer Skills Assessment Form
  • Completed questionnaire for TB
  • 10-panel drug test
  • Orientations and web-based training
  • ID verification and validation

All these steps must be taken by the caregivers who want to continue serving clients under the Honor platform!

Since Honor caregivers work with elderly clients, this strict vetting process adds another level of security, ensuring that the carers are more than capable and ready for their jobs and that their clients are safe with them.

Since Honor caregivers work with elderly clients, this strict vetting process adds another level of security, ensuring that the carers are more than capable and ready for their jobs and that their clients are safe with them.

Consider:

  • Can you add a verification process for new users? The process could require new users to provide a valid government-issued ID and proof of address to join the platform. 
  • Might you consider implementing background checks for specific categories of users, such as service providers or drivers (as TaskRabbit and Uber do)?

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How to Provide Increased Trust by Providing Encrypted Communication

Another way to add a layer of trust to your platform is to implement better security measures.

Implementing security measures, such as encryption, can help protect buyers' and sellers' personal and financial information and increase trust in your platform.

Implementing security measures, such as encryption, can help protect buyers' and sellers' personal and financial information and increase trust in your platform.

Implementing security measures can be done in several ways, including:    

  • Using secure servers     
  • Encrypting sensitive data
  • Requiring two-factor authentication
  • Conducting security updates on the platform regularly

Security measures help to prevent fraudulent activity on the platform. These activities include scams, identity theft, or unauthorized access to sensitive data.

Don't think security is serious?

One online marketplace that improved trust by implementing security measures is Etsy. Etsy is an online marketplace focused on handmade or vintage items and craft supplies.

To increase trust in its platform, Etsy implemented several security measures.

First, they introduced two-factor authentication for all account holders. Two-factor authentication requires users to provide a second form of identification. Usually, in the form of a code sent to their phone and their password when logging in.

Second, Etsy implemented encrypted communication for all sensitive data transmitted on its website. Encrypted communication included passwords, bank account numbers, and personal details.

Finally, Etsy also added a feature that allowed users to report suspicious activity or potential scams on the platform. The ability to report suspicious activity allowed users to protect themselves and others from fraudulent activity and made the platform safer for everyone.

Finally, Etsy also added a feature that allowed users to report suspicious activity or potential scams on the platform. The ability to report suspicious activity allowed users to protect themselves and others from fraudulent activity and made the platform safer for everyone.

By being able to share these facts, these security measures helped to increase trust in the Etsy platform and made it a safer place to buy and sell items.

Let's start with simple steps:

  • If you haven't already, start by adding a layer of trust by implementing security measures such as two-factor authentication (2FA) for user accounts
  • Let your customers know about the new feature.

How to Ensure Transparent Feedback for a Trusted Marketplace Platform

Ratings are a powerful tool that builds trust in your online marketplace; allowing buyers to see the experiences of other buyers helps them make more informed decisions when purchasing.

Ratings are a powerful tool that builds trust in your online marketplace; allowing buyers to see the experiences of other buyers helps them make more informed decisions when purchasing.

Giving sellers an incentive to provide good customer service helps create a more trustworthy environment where quality and reputation are rewarded.

Implementing a ratings and review system in an online marketplace could mean allowing buyers and sellers to rate their experience in a transaction with a star system or reviews in qualitative form.

Implementing a ratings and review system in an online marketplace could mean allowing buyers and sellers to rate their experience in a transaction with a star system or reviews in qualitative form.

By making reviews visible for other users to see, you'll encourage buyers to use the review system. You'll also need to be moderating reviews for legitimacy.

Proof that reviews work:

TripAdvisor is an online platform for travel-related services. The company has implemented a review system where users can leave feedback about their experiences with hotels, restaurants, and activities.

TripAdvisor is an online platform for travel-related services. The company has implemented a review system where users can leave feedback about their experiences with hotels, restaurants, and activities.

Doing this has helped build trust between travelers and service providers, as travelers can see the experiences of others before making a booking.

The platform also has a rating system, which allows customers to rate their overall experience with the service provider.

TripAdvisor providers can help boost their ranking and promote their services in the top 10 or top spot in their area by asking for reviews from their previous customers. A good ranking shows interested travelers that they are a reputable business on the platform.

TripAdvisor providers can help boost their ranking and promote their services in the top 10 or top spot in their area by asking for reviews from their previous customers. A good ranking shows interested travelers that they are a reputable business on the platform.

Want to increase trust? Start simple:

  • Implement ratings or review systems in your online marketplace
  • Ensure these reviews are visible to users and verified for legitimacy.

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When this article was first published, verification and honest reviews were a way to stand out. Since then, regulators in the US, EU and UK have made many of these measures mandatory. Fraud has also become more costly: the FTC reported in March 2025 that US consumers lost more than $12.5 billion to fraud in 2024, up 25% from 2023. Online shopping was the second most commonly reported fraud category.

RuleIn force sinceWhat it asks of marketplaces
US INFORM Consumers ActJune 27, 2023Covers "high-volume" third-party sellers: 200+ sales and $5,000+ in gross revenue in any 12-month period. The marketplace must collect their bank, tax ID and contact details, verify them within 10 days, and have sellers re-certify every year. For sellers with $20,000+ a year, it must show buyers their name, physical address and contact details. Penalties: up to $53,088 per violation (FTC).
EU Digital Services ActFebruary 17, 2024 (all platforms)Marketplaces that let consumers buy from businesses must collect each trader's identity and contact details, make best efforts to verify them, make them easily accessible to buyers, and make reasonable efforts to randomly check listings against official databases of illegal products. Micro and small platforms are exempt from these marketplace duties. Fines go up to 6% of global annual turnover.
FTC rule on fake reviewsAnnounced August 14, 2024, in force 60 days after publicationBans fake or AI-generated reviews, paying for reviews that must be positive or negative, undisclosed reviews by insiders, and suppressing negative reviews through threats or intimidation. The FTC can seek civil penalties against violators.
UK DMCC Act, Schedule 20April 6, 2025Bans fake and hidden-incentive reviews, and bans presenting reviews in a misleading way, for example removing only the negative ones. Sites that publish reviews must take "reasonable and proportionate steps" to keep fake reviews off.

A practical trust checklist for 2026

  • Know your sellers. At minimum, confirm an email address and phone number. If business sellers sell on your site in volume, collect and check their details the way the INFORM Act and DSA require.
  • Show who is selling. A visible seller profile with contact details helps buyers decide, and for business sellers in the EU it is now required.
  • Moderate before you publish in high-risk categories such as vehicles, rentals and electronics, where scams cluster.
  • Keep reviews honest. Never delete negative reviews just because they are negative, never buy reviews, and label reviews that were given an incentive. In the UK and US this is now enforceable law, not just good practice.
  • Protect accounts. Two-factor login makes it much harder for scammers to hijack a seller's profile and post fake listings.

You don't need a big engineering team for the basics. A hosted platform such as Yclas includes seller and listing reviews, two-factor login, approve-before-publish moderation and reCAPTCHA/Akismet spam protection. For INFORM or DSA obligations, check the details with a lawyer.

Closing Summary

There are several ways to improve existing solutions and add a layer of trust in an online marketplace.

  •     Vet users on the platform by verifying their identities, checking references, and possibly requiring them to pass a background check.
  •     Implement security measures such as secure encryption.
  •     Build trust with a ratings and review system that allows buyers to see the experiences of other buyers (acts as a form of quality control for the marketplace).

By implementing these and other trust-building strategies, you can create a more trustworthy (and therefore more desired) online marketplace platform.

Thoughts?

  • What is the minimum feature you require from an online marketplace to trust the platform and use it?
  • Do you have this implemented in your online marketplace?

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