Most early marketplaces over-collect at signup. The result: vendors abandon the funnel before they post their first listing.
Minimum viable verification
Legal name, business address, payout account. Anything beyond this is friction unless the regulator requires it.
Progressive verification
Move identity verification, tax forms, and category-specific compliance to a moment of value — first payout, first dispute, or hitting a GMV threshold.
This pattern keeps the onboarding fast while still letting operators meet platform liability requirements over time.
