The Challenge
The client's founding team had identified a genuine gap: the South Asian diaspora in Canada — nearly 1.8 million people — had no curated online marketplace for authentic artisan goods, regional food products, and cultural items from their home countries. Platforms like Amazon and Etsy existed but offered no curation, poor discoverability for niche ethnic products, and no understanding of the trust signals that matter to this community. The client wanted to fill that gap with a marketplace that felt made for its audience.
The business model required multi-vendor architecture with automatic commission splitting — vendors would set their prices, The client would take a platform fee, and Stripe would split the payment at the point of transaction without manual reconciliation. Canadian GST/HST compliance was non-negotiable: tax rates vary by province, product category, and whether the vendor is GST-registered. A marketplace that miscalculates tax on any transaction was a legal liability, not just an operational inconvenience.
The client had gathered vendor interest through a pre-launch waitlist — 400 potential sellers across Canada, the UK, and Bangladesh. Their target was 100 vendors live at launch. They had been quoted $400,000 and 18 months by two Toronto-based agencies. They couldn't wait 18 months, and the funding didn't support $400,000. When they found us through a referral from another founder, their question was direct: "Can you build this for less, faster, without compromising on the tax compliance and payment architecture we need?" The answer was yes.
Our Approach
We scoped the project in a single 4-hour session and committed to a 16-week delivery timeline. ShopNest's multi-vendor marketplace architecture handled the core commerce infrastructure — product catalogue, vendor storefronts, order management, reviews, and the admin console. The extension work specific to The client was well-defined: Stripe Connect for split payments, the Canadian tax engine, and the curation workflow for the pre-launch vendor waitlist.
The Canadian tax engine was the most technically nuanced piece of the project. GST/HST rates vary by province (Ontario charges 13% HST; Alberta charges 5% GST; Quebec applies 14.975% total). Product category exemptions add another layer — basic groceries are zero-rated; prepared foods are taxable. Vendor GST registration status affects whether input tax credits can be applied. We built a tax calculation service that ingests the buyer's shipping province, the product category codes from each order line, and the vendor's GST registration status, and returns the correct tax amount for every jurisdiction in under 100 milliseconds. The output feeds both the checkout display and Stripe's tax reporting for vendor tax remittance.
Stripe Connect's split payment architecture required careful orchestration. When a buyer places a multi-vendor order, the checkout creates a single payment intent, Stripe routes the funds to each vendor's connected account minus the platform fee, and the payout schedule is configured per vendor. We implemented a 7-day rolling payout to give The client a dispute resolution window before funds become final. The vendor onboarding flow for Stripe Connect — including ID verification, business type selection, and bank account linking — was embedded directly into the seller registration process with real-time validation to prevent incomplete registrations.
The Solution
The delivered platform includes the Next.js/React storefront with server-side rendering for SEO performance, a React Native mobile app for iOS and Android, the NestJS/PostgreSQL backend, Stripe Connect payment infrastructure, the Canadian tax engine, and a vendor management console. The storefront's SSR implementation achieves first meaningful paint under 1.2 seconds, critical for organic search performance in a competitive e-commerce category.
Vendor onboarding takes under 20 minutes: business details, product catalogue (with CSV bulk upload), Stripe Connect linking, and a 24-hour curation review by The client's team. The curation step — not present in most marketplace templates — was a deliberate The client brand decision: every vendor is manually reviewed before going live, maintaining the "authenticated artisan" positioning. We built the curation queue as an admin module with approve/reject/request-info actions and automated email notifications to vendors at each stage.
The buyer experience is built around discovery: curated collections, seller stories, region-of-origin filtering, and a "newly arrived" feed that surfaces new vendors within 48 hours of approval. The loyalty programme issues points on purchases that convert to platform credits — managed as a ledger within the backend, not a third-party integration, to avoid the commission costs of external loyalty platforms. The architecture has been tested at 10x the current vendor load; scaling to 10,000 vendors requires infrastructure upgrades, not code changes.
Results & Impact
ShopNest
This project was built on our pre-built ShopNestplatform — customised for this client's exact needs.
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