Business Use Case

Identify which use case applies to your business

To adopt KOMOJU Platform Model, you need to identify which use case applies to your business in the first place.

Essentially, Platform Model supports two kinds of businesses - Platform and Marketplace. Here's the definitions of them:

  1. Platform Business: If your business connects buyers and sellers and empowers the sellers to accept payments online from customers directly, you’re likely an e-commerce platform that should adopt the Platform Use Case. (examples of Platform Business: Shopify Payments, WooPayments...etc)
  2. Marketplace Business: If your business manages the entire checkout journey and accepts payments online from customers directly on behalf of your sellers, you’re likely operating a marketplace that should adopt the Marketplace Use Case. (examples of Platform Business: Etsy, Airbnb, Uber...etc)

Identify which use case applies to your business

We suggest starting from a payment processing standpoint to find out who is the Merchant of Record (MoR) in your business. MoR is the entity that accepts payments from customers directly and is in charge of fulfilling the orders. There's a critical difference in MoR between Platform Business and Marketplace Business:

  1. Platform Business: The Merchant of Record is your seller that leverages your service or product to accept payments from customers directly.
  2. Marketplace Business: The Merchant of Record is yourself since you accept payments from customers via your own sales channels directly.

With the figure below, you'll be able to identify which use case in Platform Model applies to your business:

Identify use case

If Platform Use Case applies to your business, check the overview of Platform Use Case below:

If Marketplace Use Case applies to your business, check the overview of Marketplace Use Case below: