Why chasing GMV might be killing your marketplace (and what to focus on instead)
Original: The Hierarchy of Marketplaces — Introduction and Level 1
Summary
Sarah Tavel introduces a framework for building scalable and enduring marketplaces.
Who This Is For
Product Managers
Founders
Growth Marketers
Key Takeaways
- Focus on creating buyer and seller happiness rather than chasing GMV as your primary metric
- Start with a small, specific market (the 'thimble') and perfect happiness there before expanding
- Use net revenue retention as a better measure of marketplace health than traditional vanity metrics
- Understand that happiness is your true moat, not scale - even large incumbents are vulnerable to happier alternatives
Tools & Technologies
Net revenue retention metrics Net Promoter Score (NPS) Sean Ellis retention survey
Topics Covered
marketplaces platforms strategy engagement
Ready to dive deeper?
Read Full Article on sarahtavel.medium.com
