Background
A growing online marketplace startup connecting independent sellers with buyers across multiple regions. While the platform saw promising growth, it struggled with a common challenge for two‑sided marketplaces: lack of trust between buyers and sellers. This trust gap often led to disputes, refunds, and even platform abandonment.
The Challenge
Dispute rate was climbing to nearly 15% of transactions. The main issues were:
- Buyers worried about product quality before making payment.
- Sellers concerned about non‑payment after shipping goods.
- Customer service overwhelmed by mediation requests.
- Reputation risk from negative reviews and social media complaints.
Without a solution, these disputes threatened the platform’s growth, investor confidence, and customer loyalty.
The Lock Trust Solution
Lock Trust implemented a fully integrated escrow system within the checkout process. Key features included:
- Funds Held Securely until both parties confirmed transaction completion.
- Automated Escrow Release upon buyer confirmation or delivery verification.
- Dispute Management Workflow built directly into the payment process.
- Transparent Transaction Tracking for both buyers and sellers.
Implementation
The rollout took less than four weeks and included:
- Custom API Integration with the marketplace’s existing payment gateway.
- User Education Campaign to explain escrow benefits in simple terms.
- Trust Badges & Messaging on listings to signal secure transactions.
- Escrow‑Based Dispute Mediation that reduced manual intervention.
Results
Within six months of implementing Lock Trust’s escrow technology:
- 72% reduction in dispute rates.
- 48% increase in successful transaction completions.
- 31% faster deal closures due to increased trust.
- Customer satisfaction ratings improved from 4.1 to 4.7 stars.
Impact on Growth
- Retention Boost: Returning customer rate increased by 25%.
- Seller Confidence: More sellers listed high‑value items without fear of loss.
- Operational Efficiency: Customer support tickets related to payment disputes dropped by 60%.
Quote from the Client
“Escrow changed the game for us. Buyers finally feel safe making large purchases, and sellers know they’ll get paid. Disputes no longer dominate our support queue — now we can focus on scaling.”
— Daniel Rivers, CEO
Looking Ahead
The client is now expanding to new product categories and cross‑border markets, confident that escrow will continue to protect transactions and strengthen trust at scale. Lock Trust is working closely with them to add multi‑currency escrow support and instant escrow settlement for faster payouts.
Conclusion
This case study proves that escrow isn’t just a payment tool — it’s a growth engine for marketplaces. By eliminating mistrust and preventing disputes, platforms can create a safer environment for both buyers and sellers, leading to stronger loyalty and accelerated growth.