Marketplace Growth
RGM° · Training
Marketplace Fundamentals
Two-sided dynamics differ fundamentally. Types, economics, strategy.
Why marketplaces are unique
Marketplaces match supply and demand. Two-sided dynamics, network effects, and liquidity all distinguish from traditional businesses. Growth strategies differ fundamentally.
Marketplace types
- Peer-to-peer (Airbnb, eBay, Etsy).
- B2C aggregator (Amazon, DoorDash, Instacart).
- B2B (Faire, Alibaba).
- Service marketplaces (Upwork, TaskRabbit).
- Vertical-specific (Carvana, OpenTable).
- Two-sided ad networks (Meta, Google).
Economics
- Take rate (% of transaction).
- GMV (gross merchandise value).
- Liquidity metrics.
- Network effects.
- Switching costs.
- Disintermediation risk.
Strategy
- Cold start problem.
- Side prioritization (supply vs demand).
- Geographic concentration.
- Vertical depth.
- Multi-sided value creation.
- Defensibility (network effects).
Advanced playbook
- Documented marketplace strategy.
- Cold start problem solved.
- Side prioritization explicit.
- Geographic concentration disciplined.
- Liquidity metrics dashboard.
- Network effects measurement.
- Disintermediation prevention.
- Annual strategy review.
- Industry monitoring.
- Cross-functional ownership.
Mistakes
- Cold start not solved before scale.
- Side prioritization unclear.
- Geographic dilution.
- Liquidity metrics absent.
- Network effects unmeasured.
- Disintermediation risk ignored.
- Take rate set blindly.
- Annual review skipped.
- Industry monitoring absent.
- Cross-functional ownership unclear.
Checklist
- Documented marketplace strategy
- Cold start problem solved
- Side prioritization explicit
- Geographic concentration disciplined
- Liquidity metrics dashboard
- Network effects measurement
- Disintermediation prevention
- Annual strategy review
- Industry monitoring
- Cross-functional ownership
Sources and further reading
- Andrew Chen, "The Cold Start Problem"
- Sangeet Paul Choudary, "Platform Scale"
- Bill Gurley marketplace research
- NfX marketplace research
- Reforge marketplaces curriculum
- Lenny Rachitsky marketplace cases
- HBR marketplace research
- Bain marketplace research
- Sequoia marketplace research
- First Round Review marketplace
- Marketing Brew marketplace coverage
- Andrew Chen blog
Part of the Marketplace Growth series.