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Marketplace frameworks fall into four core types: B2B, B2C, C2C and B2C2C. Each type splits further by scope into vertical or horizontal models. The framework you choose shapes your revenue model, your onboarding process and how you handle payments. Getting this choice right early avoids a costly rebuild once split payments and seller payouts are live.
What is a marketplace framework?
A marketplace framework describes how a platform connects buyers and sellers, and who sits on each side of the transaction. It covers the business model, the scope of the catalogue, and the revenue mechanism the platform uses to make money. Payment processing sits underneath every framework. Each one needs a way to collect funds, verify sellers and route payouts correctly.
Marketplaces differ from traditional ecommerce in one key respect: they do not own what they sell. A platform such as Airbnb owns no property, and Upwork employs none of the freelancers listed on it. Instead, each platform makes money by helping two sides find each other and transact safely. That is why the framework and the payment setup behind it matter so much.
Marketplace structures by participant type
The first way to classify a marketplace is by who is transacting with whom.
B2B marketplaces
A B2B marketplace connects businesses buying from other businesses. These platforms often handle bulk orders, negotiated pricing and longer sales cycles than consumer marketplaces.
B2C marketplaces
A B2C marketplace connects businesses selling directly to individual consumers, the model behind platforms such as Amazon and Etsy.
C2C marketplaces
A C2C marketplace, or peer to peer model, lets individuals trade directly with each other. eBay and Vinted are well known examples of this structure.
B2C2C marketplaces
A fourth variant, B2C2C, adds a business layer between the seller and the end customer. This pattern is common in dropshipping and some rental platforms, where a business manages logistics on a seller's behalf. Each model demands a different approach to seller verification and payment routing.
Marketplace structures by scope: vertical and horizontal
A second classification looks at scope rather than participants.
Vertical marketplaces
A vertical marketplace focuses on one category or industry, such as construction equipment, freelance design or pharmacy supplies. Vertical marketplaces tend to build deeper trust within a niche, since sellers and buyers share specialist knowledge and expectations.
Horizontal marketplaces
A horizontal marketplace spans many categories and serves a broad user base, the approach taken by Amazon and eBay. Horizontal marketplaces trade niche depth for scale, competing instead on selection, price and convenience. Many platforms start vertical to prove demand in one category, then widen their scope once liquidity is established.
How scope and participant type combine
Scope and participant type combine to produce the frameworks seen in practice. A vertical B2B marketplace might serve one type of business buyer in one industry, such as hospitality procurement. A horizontal C2C marketplace, by contrast, might let individuals buy and sell almost anything, the approach eBay took at launch.
A few familiar platforms illustrate how these combinations play out. Etsy runs a horizontal B2C and C2C hybrid, since both small businesses and individual makers sell through it. Upwork runs a horizontal B2B and B2C marketplace for freelance services, spanning many professions rather than one.
Vinted runs a vertical C2C marketplace focused only on secondhand fashion. Each needs a different payment setup as a result. Etsy handles seller payouts at scale, while Vinted handles lower value, high frequency transactions between individuals.
Revenue models across marketplace frameworks
Framework and revenue model are closely linked, though not fixed to each other.
Commission
Commission remains the most common choice across B2B, B2C and C2C marketplaces alike. It is charged as a percentage or flat fee per transaction. It works well because sellers only pay once they receive value, which keeps friction low for new users joining the platform.
Subscription and listing fees
Subscription and listing fee models suit marketplaces where facilitating payment is difficult. Big ticket B2B deals and classifieds both fall into this category, since the value per transaction is hard to capture through commission alone.
Lead fee and freemium
Lead fee and freemium models work best where a platform connects two parties without processing the transaction itself. This pattern is common in recruitment and some service marketplaces.
No single revenue model fits every framework. A vertical B2B marketplace handling large, infrequent orders might favour subscription or lead fees over commission, since the invoicing process behind those deals can be too complex to facilitate directly. A horizontal C2C marketplace with frequent, low value transactions usually leans on commission instead, since it scales cleanly with volume.
How payment infrastructure differs across marketplace frameworks
Payment requirements shift with the framework a platform adopts.
Payment rails by framework
B2B marketplaces often need to support invoicing, bulk settlement and longer payment terms, alongside standard card and bank transfer rails. B2C and C2C marketplaces usually need faster rails: card payments, digital wallets, and fast payouts. Same day or next day payouts keep sellers engaged with the platform.
Split payments and escrow
Every multi party marketplace, regardless of framework, needs a way to split one payment across several recipients. This typically means collecting the full amount from the buyer, then deducting a platform fee. The remainder routes to one or more sellers, often with funds held in escrow until the order completes, which protects both sides of the transaction.
Seller verification, through KYC and AML checks, has to happen before any payout goes out. This is where rapid seller onboarding tools come in.
Providers such as Ryft offer this split payment and escrow logic as FCA licensed infrastructure, which lets marketplace operators avoid building that logic themselves. The right payment setup still depends on the framework in use: a B2B platform processing few, large transactions has different needs to a C2C platform processing many small ones.
Compliance considerations across marketplace frameworks
Any marketplace that collects funds from a buyer and passes them to a seller sits within scope of PSD2, regardless of which framework it uses. In practice, this means Strong Customer Authentication on card payments, KYC checks on sellers, and proper safeguarding of customer funds. The FCA updated its guidance on payment services and electronic money again in 2026, with changes affecting safeguarding and reporting rules for payment firms.
Vertical marketplaces in regulated sectors, such as pharmacy or finance, often carry extra sector specific obligations on top of standard payment compliance. Horizontal marketplaces that span many categories need compliance processes flexible enough to cover every vertical they touch. Either way, compliance should be built into the payment setup from day one, since adding it later, once a platform has scaled, is far harder.
Choosing the right framework for your platform
The right framework depends on your supply side, not just your product. If sellers are professional businesses with inventory and systems already in place, B2B or B2C structures tend to fit better. If supply comes from individuals monetising spare capacity, a C2C or peer to peer structure tends to work better. That spare capacity might be a room, a skill or a used item.
Scope should follow demand rather than ambition. Starting vertical, inside one category, makes it easier to reach liquidity before expanding horizontally later. Once the framework is settled, payments, onboarding and compliance should be built around it rather than bolted on afterwards. For a closer look at how money moves through a live platform, see how the payments ecosystem works.
Marketplaces built on Ryft's marketplace payment infrastructure can launch any of these frameworks on one FCA licensed platform, covering everything from split payments to seller payouts and escrow. Speak to our payments teamabout which structure and payment setup fits your business.
Frequently asked questions
Marketplace frameworks split by participant into B2B, B2C, C2C and B2C2C models, and by scope into vertical and horizontal structures. Participant type defines who buys and sells, while scope defines how many categories a platform covers. Most platforms combine one option from each group, such as a vertical C2C marketplace built for one specific hobby.
A vertical marketplace focuses on one category or industry, while a horizontal marketplace spans many categories at once. Vertical platforms build deeper trust and specialist knowledge within one niche market. Horizontal platforms trade that depth for scale, competing instead on selection and price, the approach Amazon and eBay both take.
B2B marketplaces typically need invoicing, bulk settlement and support for longer payment terms. B2C and C2C marketplaces need faster rails instead, such as card payments, digital wallets and quick seller payouts. Every multi party structure also needs split payments and escrow, which providers such as Ryft deliver as FCA licensed infrastructure.
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