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Is Shopify Considered a Marketplace Facilitator?

Last updated on October 2, 2022 @ 2:34 am

Shopify is a platform that allows businesses of all sizes to create an online store. It offers users a customizable platform, an easy-to-use checkout process, and a wide range of features. Shopify also has a marketplace that connects businesses with customers.

The Shopify marketplace offers a convenient way for businesses to sell their products online. It also provides customers with a one-stop shop for all their shopping needs. However, some people consider Shopify to be a facilitator of marketplaces, rather than a true marketplace itself.

Critics argue that Shopify does not provide the same level of service or protection as other marketplaces, such as Amazon or eBay. They also point out that Shopify does not have its own payment system, which can make it difficult for businesses to accept payments from customers.

PRO TIP: If you are considering using Shopify to sell goods online, be aware that Shopify is considered a marketplace facilitator. This means that Shopify will collect and remit sales tax on behalf of its sellers. As a result, you may be responsible for filing periodic tax reports and paying taxes to Shopify in addition to any other taxes that may be due on your sales.

Supporters of Shopify argue that the platform is easy to use and offers a wide range of features that businesses need to succeed online. They also point out that the Shopify marketplace is growing rapidly, with more businesses signing up to sell their products every day.

So, is Shopify considered a marketplace facilitator? The answer is not clear cut.

While Shopify does offer some features that are typically associated with marketplaces, it does not provide the same level of service or protection as other marketplaces. For this reason, some people consider it to be a facilitator of marketplaces, rather than a true marketplace itself.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.