In addition, promoters must decide whether the marketplace will act as a principal, taking title to goods offered for sale. In some marketplaces, once a purchaser clicks a mouse to purchase goods from an exchange's database, the exchange will order the items from the manufacturer or distributor, take title and pay for the goods, regardless of whether the purchaser ultimately pays for the items ordered. This model presents financing and collection risks for the exchange. On the other hand, instead of acting as intermediary sellers, other marketplaces merely match buyers and sellers. Pricing mechanisms further complicate the picture.
Some sites offer goods at established prices while others offer goods at auction.
In fact, some B2Bs offer all three transaction styles. Another matter to address at the outset is the jurisdiction in which the marketplace is organized. Tax, regulatory and finance considerations affect the decision, as do the nature of the business at which the marketplace is aimed and the location of the likely users of the site. Some marketplaces may lend themselves to tax haven jurisdictions. Organizers should also consider relevant product liability law.