Why some marketplaces win big while others barely survive
Original: Marketplaces and Revenue Models
Summary
Defines what a marketplace is and how it generates revenue by facilitating transactions.
Who This Is For
Business Analysts
Product Managers
Founders
Key Takeaways
- Horizontal marketplaces (like Amazon) target broad audiences while vertical ones (like Nykaa) focus on specific niches with better experiences
- Network effects create virality that leads to exponential growth and 'winner take all' dynamics in marketplace industries
- Market data shows only 1-2 players can successfully dominate in each marketplace category, whether horizontal or vertical
- Once customer acquisition becomes expensive, successful marketplaces pivot to maximizing wallet share from existing users
Tools & Technologies
Flipkart Amazon Snapdeal PaytmMall Meesho Nykaa Myntra Cars24 Pharmeasy
Topics Covered
marketplaces revenue-models platforms economics
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