Marketplace

A marketplace does not own the inventory it sells. It builds the venue where supply and demand meet, sets the rules of exchange, and takes a share of the value created. Growth depends on solving the cold-start problem — attracting enough of one side to make the other side worth joining.

The defining characteristic is network effects: each additional participant makes the platform more valuable to everyone on the opposite side.

Revenue comes from a take rate on transactions — a percentage of gross merchandise value, a listing or placement fee, or a subscription layered on top. The economics depend on how much value the platform adds relative to the cut it takes; price it too high and both sides route around the platform.

• Gross merchandise value and net revenue
• Take rate and whether it holds as volume grows
• Liquidity — the share of listings that actually transact
• Repeat rate on both the supply and demand sides
• Disintermediation — users meeting on-platform then transacting off it

Genuine liquidity in a narrow segment before any expansion — a market where most listings transact rather than sit. Repeat usage on both sides. A take rate that holds or rises as the platform adds services. Demand growth driven by organic and referral traffic rather than paid acquisition.

• Managed marketplace — the platform controls quality, pricing, or fulfilment
• B2B marketplace — larger orders, fewer participants, longer relationships
• Vertical marketplace — one category, deep workflow integration
• Rental or access — the asset is borrowed rather than bought

• What share of listings actually transact?
• How much volume comes from repeat users versus first-timers?
• What keeps the two sides from transacting off-platform?
• How concentrated is supply among your top sellers?
• Has the take rate held as you have scaled?