Why marketplaces are trickier than they look (but totally worth it)
Original: Building and Investing in Marketplaces
Summary
A comprehensive guide to how marketplaces work and how to evaluate or build one.
Who This Is For
Founders
Product Managers
Growth Marketers
Key Takeaways
- Marketplaces are harder to launch than e-commerce but easier to scale once network effects kick in
- Focus on achieving liquidity by nailing a small, overlooked niche first, then expanding from there
- Vertical marketplaces offer better user experiences but horizontal ones create larger venture-scale opportunities
- Managed marketplaces trade scalability for quality control - jury's still out on which approach wins
- Key metrics to optimize: lower customer acquisition costs, higher retention, and increased average order values
Tools & Technologies
Uber Airbnb Craigslist Amazon Stubhub Thumbtack Fiverr Rover
Topics Covered
marketplaces venture-capital liquidity trust
Ready to dive deeper?
Read Full Article on eriktorenberg.substack.com
