This is for traditional, consumer-focused marketplaces.
- Two main characteristics when evaluating potential marketplace investments: fragmentation and lead generation
- Additionally, a successful marketplace should ideally introduce new relationships (lead gen), like Airbnb connecting hosts with guests they wouldn't have met otherwise
- More effective paid advertising
- Despite sellers (or supply side) often being the revenue source, it's more important to prioritize the buyer side (demand) to drive marketplace growth
- Great customer experience and NPS drives consumer-internet
- Need customer engagement also
- Reducing transactional friction
- Enhancing and expanding product offering
- Execution of marketplaces:
- Audit & quality of supply
- Safety and trust for marketplaces
- Low transaction friction (too much impacts ability to grow)