This document provides an overview of key considerations for building and scaling online marketplaces. It discusses the challenges of the early "seeding" stage when attracting both buyers and sellers is difficult. Creating a virtuous cycle of supply and demand is important to reach critical mass. The document also covers business models, metrics, and types of marketplaces like on-demand and community-driven models. Overall it aims to guide readers on the important stages and factors involved in developing a successful marketplace.
What are the B2C, B2B, & B2G, C2C, C2B, G2B & G2C, B2G & C2G Business types o...Sukanta Rakshit
There are multiple types of businesses which are called as B2C (Business to Consumer), B2B (Business to Business) & B2G (Business to Government), C2C (Consumer to Consumer), C2B (Consumer to Business), G2B (Government to Business) & G2C (Government to Consumer), B2G (Business to Government) & C2G (Consumer to Government).
LINK TO VIDEO: https://youtu.be/G4diIzdBJL8
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A brief description on the various ecommerce business models, stakeholders and challenges, including fraud risks and success factors. Published in 2017.
What are the B2C, B2B, & B2G, C2C, C2B, G2B & G2C, B2G & C2G Business types o...Sukanta Rakshit
There are multiple types of businesses which are called as B2C (Business to Consumer), B2B (Business to Business) & B2G (Business to Government), C2C (Consumer to Consumer), C2B (Consumer to Business), G2B (Government to Business) & G2C (Government to Consumer), B2G (Business to Government) & C2G (Consumer to Government).
LINK TO VIDEO: https://youtu.be/G4diIzdBJL8
business types explained, business models of e-commerce,b2b,b2c,c2c,c2b,b2g,g2b,g2c,business - to - business,business - to - consumer,consumer - to - consumer,consumer - to - business,business - to - government,government - to - business,government - to - citizen, Ecommerce, Types, Ecommerce types, E commerce types in hindi, E commerce types, Types of ecommerce business, Types of e commerce:types of e-commerce in hindi, Types of e commerce in hindi, Major types of e commerce, Ecommerce meaning in hindi, Ecommerce theory, Types of e-commerce business models, Business models of ecommerce, Youtube video on types of ecommerce,E commerce and types of e-commerce
A brief description on the various ecommerce business models, stakeholders and challenges, including fraud risks and success factors. Published in 2017.
Blockchain: all assets digitized and registered to blockchains; instantaneously transactable on a global basis
Blockchain Supply Chain: all assets exist in digital inventories, tradeable (pledgeable, financeable) and more importantly, findable, in the global digital network economy
Network effects. It’s one of the most important concepts for business in general and especially for tech businesses, as it’s the key dynamic behind many successful software-based companies. Understanding network effects not only helps build better products, but it helps build moats and protect software companies against competitors’ eating away at their margins.
Yet what IS a network effect? How do we untangle the nuances of 'network effects' with 'marketplaces' and 'platforms'? What’s the difference between network effects, virality, supply-side economies of scale? And how do we know a company has network effects?
Most importantly, what questions can entrepreneurs and product managers ask to counter the wishful thinking and sometimes faulty assumption behind the belief that “if we build it, they will come” … and instead go about more deterministically creating network effects in their business? Because it's not a winner-take-all market by accident.
Consider this, by 2017 e-commerce sales in US alone is expected to be around $434 billion. Thanks to the rising popularity of mobile and increasing internet penetration,
e-commerce is the way forward for businesses across industries. In this PPT, we will quickly compare an e-commerce store and online marketplaces and look at how a New York’s leading dealer for DJ, Pro Audio equipment, Music Technology and Instruments leverages their e-commerce store and the online marketplace to increase its brand presence and improve sales.
What is a strategy and how to incorporate eBusiness strategies to the business?
SWOT Analysis to understand business environment before developing strategies.
Global Trade Platform for Small and Medium Scale enterprises.
Which are the essential digital marketing insights and automation tools to grow your business? This deck shows you the best tools across our RACE framework.
My invited talk at Amadeus Labs, 6-Aug-2020. I have discussed the concept of digital business models, what are some of the frameworks to classify them, and how to bring about innovation in it.
A data-rich dive into the state of education technology from the leading and most active edtech fund. We focus here on school-based education technology with case studies of emerging frontier tech.
Making a Marketplace: A Checklist for Online DisruptionNir Eyal
On November 13, 2012, Bill Gurley, a partner at Benchmark Capital, posted a remarkable essay on his blog. In it, he described the, “10 factors to consider when evaluating digital marketplaces.” Given the tremendous value marketplaces are known to create and how hard they are to get right, we found this essay to be a goldmine of insight. We wanted to digest Bill’s post into a more memorable format.
The result is this brief checklist we hope will help take some of the luck out of evaluating marketplace businesses. As Bill wrote, “It is unlikely that you will find a marketplace opportunity that would score ten out of ten with respect to this list.” But according to Bill, the odds of success improve the more of these characteristics the business exhibits.
Read Bill Gurley’s original post here: http://goo.gl/xoAUw
- Nir (nirandfar.com) and Sangeet (platformed.info)
Blockchain: all assets digitized and registered to blockchains; instantaneously transactable on a global basis
Blockchain Supply Chain: all assets exist in digital inventories, tradeable (pledgeable, financeable) and more importantly, findable, in the global digital network economy
Network effects. It’s one of the most important concepts for business in general and especially for tech businesses, as it’s the key dynamic behind many successful software-based companies. Understanding network effects not only helps build better products, but it helps build moats and protect software companies against competitors’ eating away at their margins.
Yet what IS a network effect? How do we untangle the nuances of 'network effects' with 'marketplaces' and 'platforms'? What’s the difference between network effects, virality, supply-side economies of scale? And how do we know a company has network effects?
Most importantly, what questions can entrepreneurs and product managers ask to counter the wishful thinking and sometimes faulty assumption behind the belief that “if we build it, they will come” … and instead go about more deterministically creating network effects in their business? Because it's not a winner-take-all market by accident.
Consider this, by 2017 e-commerce sales in US alone is expected to be around $434 billion. Thanks to the rising popularity of mobile and increasing internet penetration,
e-commerce is the way forward for businesses across industries. In this PPT, we will quickly compare an e-commerce store and online marketplaces and look at how a New York’s leading dealer for DJ, Pro Audio equipment, Music Technology and Instruments leverages their e-commerce store and the online marketplace to increase its brand presence and improve sales.
What is a strategy and how to incorporate eBusiness strategies to the business?
SWOT Analysis to understand business environment before developing strategies.
Global Trade Platform for Small and Medium Scale enterprises.
Which are the essential digital marketing insights and automation tools to grow your business? This deck shows you the best tools across our RACE framework.
My invited talk at Amadeus Labs, 6-Aug-2020. I have discussed the concept of digital business models, what are some of the frameworks to classify them, and how to bring about innovation in it.
A data-rich dive into the state of education technology from the leading and most active edtech fund. We focus here on school-based education technology with case studies of emerging frontier tech.
Making a Marketplace: A Checklist for Online DisruptionNir Eyal
On November 13, 2012, Bill Gurley, a partner at Benchmark Capital, posted a remarkable essay on his blog. In it, he described the, “10 factors to consider when evaluating digital marketplaces.” Given the tremendous value marketplaces are known to create and how hard they are to get right, we found this essay to be a goldmine of insight. We wanted to digest Bill’s post into a more memorable format.
The result is this brief checklist we hope will help take some of the luck out of evaluating marketplace businesses. As Bill wrote, “It is unlikely that you will find a marketplace opportunity that would score ten out of ten with respect to this list.” But according to Bill, the odds of success improve the more of these characteristics the business exhibits.
Read Bill Gurley’s original post here: http://goo.gl/xoAUw
- Nir (nirandfar.com) and Sangeet (platformed.info)
Cloud is one of that kind of digital services that is already here and materialized. Cloud services landscape is becoming more and more dense but still there is a chance for telecom players to take part in that field. Unfortunately, Communication Service Providers are late to come in and therefore it is not sufficient to put computing capacities and just sell them anymore. The economy of scale reached by current industry leaders can barely be beaten even by the largest CSPs. Therefore, some other smarter options should be found to compete with likes of Amazon, Microsoft and Google. This ppt paper is just an effort to think of CSPs role in cloud services domain and any ideas and suggestions for further discussion is very welcome.
Thank you!
Business Model 101: The Basics of Marketplaces, SaaS & Ecommerce [reduced]Point Nine Capital
An shorter introduction to some of our favourite investment areas: Marketplaces, Software-as-a-Service and Ecommerce.
Starting with different ways of monetization, we dip into the major characteristics, address critical challenges and single out the KPIs you should keep an eye on.
As presented in Startit Fest in Belgrade, http://startit.rs/
Imagine combining the best of both worlds: SaaS + Marketplace.
SaaS and Marketplaces are two of the most current business models used by startups, they both have advantages and inconveniences.
SaaS enabled Marketplace (SEM) is an hybrid between the two which can be a strong differentiator and presents a lot of benefits.
How (and When) to Hire a Great VP of Customer Success Management CSMGainsight
The VP of Customer Success role has become one of the hottest hiring priorities for companies in the Subscription Economy. Although the impact is now widely recognized, businesses still struggle with identifying the right time to bring on a CSM leader, and furthermore, how to recognize truly great candidates.
Join a lively conversation between Nick Mehta, CEO at Gainsight, Tomasz Tunguz, Partner at Redpoint Ventures, and Monica Adractas, VP of Customer Success and Retention at Box as they share how (and when) to hire a great VP of Customer Success.
In this webinar, you’ll learn:
- How data supports hiring a VP Customer Success earlier in the company lifecycle
- What the key characteristics of greatness are and how to identify them early
- How maturing companies have evolved the VP Customer Success role to meet the changing needs of their customer base
Featuring: Tomasz Tunguz, Partner at Redpoint Ventures; Monica Adractas, VP of Customer Success and Retention at Box; and Nick Mehta, CEO at Gainsight
Developing the pricing model for your B2B SaaS app is one of the biggest marketing challenges your company will face.
This is a guide to developing your SaaS pricing model was created by noted SaaS Marketing expert and Growth Hacker Lincoln Murphy of Sixteen Ventures.
This guide takes you through the questions you need to ask about not just your market and customers, but about your company and goals, to help you figure out your SaaS pricing model.
Whether you have a self-service sales model or one that requires outside sales reps to drive business, the tips and techniques contained in this guide and the source blog post will help you create a profitable and successful SaaS pricing model.
SaaS Accounting: The blueprint to understanding and optimizingPrice Intelligently
A bad accountant or finance manager can spell doom for your company though by causing you to not invest cash that you should be or worse - spending money you don’t have in the bank. This is why you need to know your SaaS accounting chops, too. To help, let’s walk through a breakdown of how revenue flows through your business from a booking all the way to cash collected.
Here we walk through exactly how to calculate ARPU (Average Revenue Per User) including what to and not to include in the calculation, as well as how to optimize this crucial SaaS metric.
• 3. The 3 Models of SaaS Pricing1How to Pick the Best Price28 Pricing Hacks3How to Test New Pricing4We’ll cover...
• 4. Model 1: Targeting Small Businesses1
• 5. Self-service, no sales team, limited support
• 6. Pricing in the $10 - $100/month rangeThis mean you need to focus onscale and acquiring customerscheaply.
• 7. Similar companies
• 8. Model 2: Targeting Enterprise2
• 9. Sales team, contracts, full support
• 10. Pricing is $1,000s or $10,000s/monthVery little is automated, your teamwill be working very closely witheach customer.
• 11. Similar companies
• 12. Model 3: The Mid-Size Hybrid3
• 13. Automated marketing with a sales team
• 14. Pricing is $100’s/monthYou’ll need to scale your leads butyou’ll have a full sales team toclose them.
• 15. Similar companies
• 16. Pick the right price range for your vision
• 17. 2 Bad Methods for Pricing
• 18. 1. Product cost + X%You’ll undercharge somecustomers and overcharge others.
• 19. 2. What does the customer want to pay?People have no idea until you askthem for their credit card.
• 20. Pricing by Value
• 21. Value-Based PricingYour customers get value worth $Yand it only costs them $X.
• 22. For B2B, focus on money earned or saved
• 23. How much extra revenue do they earn?1How many hours do they save?2What other costs do they avoid?3Ask your customers:
• 24. Capture more value from each customer.
• 25. There’s no such thing as a perfect price.If you need more guidance, pick aprice that’s 10% of the valuedelivered.
• 26. 8 Pricing Hacks8
• 27. Rule 1: Go AnnualYou’ll improve cash flow, reduceyour churn, and improve yourrevenue.
• 28. Rule 2: Don’t Add Unnecessary Digits$1000 looks cheaper than $1,000or $1000.00
• 29. Rule 3: Avoid Discounts Unless LaunchingDiscounts create destructivecustomer habits. Do not use themregularly.
• 30. Rule 4: Offer Multiple Prices to Anchor
• 31. Rule 5: Use pricing plans to segment customers.Different customer types getdifferent value from your product.Capture that value.
• 32. Rule 6: Double Your PriceWe all tend to UNDERvalue our ownservices.
• 33. Rule 7: Be Careful With Freemium PlansVery difficult to make it work in B2Bmarkets.
• 34. Rule 8: Grandfather Old Customers InAs long as you don’t raise pricesfor old customers, you won’t getany complaints.
• 35. These are rules, not laws.
• 36. How to Test New Pricing - 4 Steps
• 37. Step 1: Track subscription plans for all customersSubscription plans1Each monthly charge2Any cancelations3Access to total revenue, averagerevenue per user, and churn4
• 38. Step 2: Launch Your New Pricing Page
• 39. Step 3: Track your entire funnel
• 40. Step 4: Track ARPU and churn
• 41. KISSmetrics helps you find the right priceConnects all data to individual people1A/B tests for your entire funnel2See which plans are most profitable
Slack's Ali Rayl on Scaling Support for User GrowthHeavybit
In this Heavybit Speaker Series Presentation, Ali Rayl talks about building Slack's Support Stack particularly after the company's exponential growth spikes. Ali Rayl is the Director of Quality and Support at Slack where she’s built the team to manage more than 5,000 corporate clients including Stripe, Rdio, Medium, Airbnb, Expedia and Buzzfeed. In the past she was the Director of QA at Songbird — an open-source cross platform music player built on Mozilla’s XULRunner and GStreamer.
Full Video available Here: http://www.heavybit.com/library/developer-operations/video/2014-09-16-ali-rayl
A SaaS Metric designed to Increase Free Trial ConversionsLincoln Murphy
CCAs & Engagement – An Uncommon Way to Engage & Convert Prospects in Your SaaS Free Trial.
A few years ago I came up with a set of metrics that I called Common Conversion Activities – or CCA – that I defined as “The things that all or most paying customers do during their trial.”
In July 2012 I gave a 54-minute presentation where I introduced the next version of this ever-evolving set of metrics for measuring Free Trial success, the CCA, and I want to share that with you now.
See the video of this presentation here: http://sixteenventures.com/free-trial-metrics
Online marketplaces your ultimate key to success.pdfLaura Miller
Selling on online marketplaces opens massive business opportunities for online sellers. Read the blog to know all aspects of ecommerce marketplace platforms.
How to Build a Multi-Vendor Marketplace Platform That Will Boost Your Sales?Lucy Zeniffer
Building a multi-vendor marketplace platform involves setting up a user-friendly website, integrating secure payment gateways, and enabling seamless vendor management. Focus on features like product listings, reviews, and robust customer support. Effective marketing strategies and analytics tools are essential to attract vendors and customers, ultimately boosting sales and expanding your market reach.
Consumer Products as Multi-Sided Marketplaces by fmr Facebook PMProduct School
Main takeaways:
- Building products that serve consumer needs
- Building products that serve both business and consumer needs
- The 3 sided marketplace (e.g. consumers, video creators, advertisers)
- Building products in a C2C marketplace
This PPT waz submitted to IIPM Delhi. Our group i.e. Mehfuz,Manish,Divyank,Shikha,Yuvaraj...
If one needs n e more ppts den contact on mefuz@yahoo.co.in
White Paper: Unpacking competitive bidding methodsHenrik Jarleskog
Everyday hundreds of organizations conduct competitive bids to pick the best supplier to meet their needs. Unfortunately, too many organizations are using the wrong tools for the wrong job – often resulting in selecting the wrong supplier or developing a contract that is misaligned with the organization’s objectives. Simply put, using the wrong competitive bidding method is like putting a square peg in a round hole. Forcing it to fit is myopic and inefficient.
To further complicate things, newer more collaborative approaches have emerged which tout the benefit of allowing buyers to gain insight and improved supplier innovation. The question arises – which tool is the right tool for my situation? We believe today’s sourcing professional should understand and enthusiastically embrace the entire suite of tools in their sourcing toolkit to carefully select the technique that is most appropriate for their situation.
This paper is a collaboration between several experts in both private and public procurement. It is not an academic paper—rather it is a practitioner’s guide to help procurement professionals better understand each of the various competitive bidding methods and when the use of each are most appropriate. We have one goal: to help bring awareness to procurement professionals throughout the world of the various tools and when to use them. In short, we are “unpacking” competitive bidding methods—referred to in shorthand terms as RFx processes.
Indian e-commerce should try an emulate a perfect 'Mandi' or Marketplace. I see such solution as holy grail of Innovation in indian e-commerce. This is my attempt to think in that direction, proposed solution definitely needs refinement. I worked on in it for 4 hours and thought to share it with everyone.
Role of Marketing Channels – Channel Design & Channel Conflicts Venkat. P
Role of Marketing Channels – Channel Design Decisions – Channel Management Decisions – Types, Causes & Management of Channel Conflicts (See class Notes)– Concept of Logistics. Definition & Components of Marketing Communication mix – Characteristics of Marketing Communication Mix – Developing Effective Communication mix.
𝟏𝟎 𝐥𝐞𝐬𝐬𝐨𝐧𝐬 𝐥𝐞𝐚𝐫𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐛𝐨𝐨𝐤
"𝐁𝐞𝐥𝐢𝐞𝐯𝐞 𝐈𝐭 𝐭𝐨 𝐀𝐜𝐡𝐢𝐞𝐯𝐞 𝐈𝐭" by Brian Tracy and Christina Stein is a motivational book that focuses on the power of mindset and belief in achieving goals. Some key lessons from the book include:
1.The Power of Belief:
_______
The book emphasizes that your beliefs shape your actions and outcomes. Having a strong belief in your abilities and your goals can drive you towards success.
2.Positive Self-Talk:
_____
The authors stress the importance of using positive affirmations and self-talk to overcome self-doubt and build self-confidence.
3. Visualization:
____
The book encourages readers to visualize their goals and desired outcomes. Visualizing success can help in creating a clear mental image of what you want to achieve.
4. Setting Clear Goals:
___
Setting specific, measurable, achievable, relevant, and time-bound (SMART) goals is essential for focused progress and achievement.
5. Perseverance:
______
The book highlights the need to stay persistent in the face of challenges and setbacks. Believing in your goals and maintaining determination can help you push through difficulties.
6. Taking Action:
_____
Belief alone isn't enough; taking consistent action towards your goals is crucial. The book emphasizes the importance of continuous effort.
7. Surrounding Yourself with Positivity:
_____
Surrounding yourself with supportive and positive influences can help reinforce your beliefs and motivate you to achieve your goals.
8. Mindset Shift:
__
The book advocates for shifting from a fixed mindset to a growth mindset, where you believe that your abilities and intelligence can be developed through dedication and hard work.
9. Overcoming Fear:
______
The authors discuss strategies for overcoming fear and doubt, which often hinder progress. Cultivating courage and facing challenges head-on is essential.
10. Learning and Adaptation:
____
Embracing a mindset of learning from failures and adapting your approach can lead to continuous improvement and eventual success.
Thanks for reading.
@tongsa guy
𝟏𝟎 𝐥𝐞𝐬𝐬𝐨𝐧𝐬 𝐥𝐞𝐚𝐫𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐛𝐨𝐨𝐤
"𝐁𝐞𝐥𝐢𝐞𝐯𝐞 𝐈𝐭 𝐭𝐨 𝐀𝐜𝐡𝐢𝐞𝐯𝐞 𝐈𝐭" by Brian Tracy and Christina Stein is a motivational book that focuses on the power of mindset and belief in achieving goals. Some key lessons from the book include:
1.The Power of Belief:
_______
The book emphasizes that your beliefs shape your actions and outcomes. Having a strong belief in your abilities and your goals can drive you towards success.
2.Positive Self-Talk:
_____
The authors stress the importance of using positive affirmations and self-talk to overcome self-doubt and build self-confidence.
3. Visualization:
____
The book encourages readers to visualize their goals and desired outcomes. Visualizing success can help in creating a clear mental image of what you want to achieve.
4. Setting Clear Goals:
___
Setting specific,
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
Textile Chemical Brochure - Tradeasia (1).pdfjeffmilton96
Explore Tradeasia’s brochure for eco-friendly textile chemicals. Enhance your textile production with high-quality, sustainable solutions for superior fabric quality.
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
2. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
3. What’s an online marketplace?
Product-Focused Service-Focused Product + Service
A type of e-commerce site that connects those who
provide a product/service (sellers) with those looking to
buy that product/service (buyers)
Creates efficiency in an otherwise inefficient market
4. 1. Aggregates sellers and their inventory
2. Includes a transaction element
– A true marketplace manages the entire transaction - from listing
to payment processing - with the service and goods delivered
offline.
– Some initiate but do not process transactions, such as lead
generation sites where providers send quotes through the
platform (Thumbtack).
Two elements to every marketplace
5. B2C (business-to-consumer)
Existing businesses use platform
and/or individuals formalize their
activities into a business.
B2B (business-to-business)
Makes procurement and supply
chain more efficient for long-tail
SMB market.
Marketplaces defined by role of participants
P2P (peer-to-peer)
Private individuals sell
to others.
6. 1. Gross Merchandise Value (GMV)
– Total dollar value of everything sold in a time period
– This is not the platform’s revenue.
2. Take Rate
– Percentage of GMV the marketplace takes in fees
Two metrics of a marketplace
7. Five factors to consider in a marketplace*
* Source: All Markets Are Not Created Equal: 10 Factors To Consider When Evaluating Digital Marketplaces by
Bill Gurley. All 5 factors (or 10 on Bill’s list) are not required to build a good marketplace, but the more you have,
the higher the potential of your marketplace.
1. High fragmentation
2. Buyer/seller relationship
3. High purchase frequency
4. Total available market (TAM)
5. Being part of the payment flow
8. High fragmentation
Most value is created in a highly fragmented market.
– Buyers need help connecting to sellers.
Higher fragmentation = higher take rate
– It reduces the negotiation power of participants.
– By contrast, when there are few suppliers, they won’t want to
share in the economics with a new marketplace, resulting in a
lower take rate.
9. The buyer/seller relationship
When buyers are loyal to their supplier, the value of a
marketplace is reduced.
– As an example, once consumers find a doctor they trust, they
will not shop for another for some time.
– This is also true for commoditized products where products are
sourced from the same supplier (e.g. diapers on the consumer
side and raw materials for businesses).
10. High purchase frequency
Know the difference between how often a buyer uses a
service versus the marketplace.
“All things being equal, a higher frequency is obviously better…
where the consumers can rely on the marketplace as a utility.
Many failed marketplaces attack purchasing cycles that are way
too infrequent, which makes it much more difficult to build brand
awareness and word-of-mouth customer growth.” - Bill Gurley
11. Total available market (TAM)
Can your marketplace create new value?
How big is the total available market and how much can
you capture?
12. Being part of the payment flow
The potential take rate is much higher when money is
exchanged on the marketplace instead of offline.
13. How to win against the incumbent
1. Lower the take rate
2. Go vertical: new categories or geographies
3. Develop a 10x better product
4. Bring unique inventory to underserved markets
14. Network effects
When a new user is added to the network, it increases the
value of the service to all other users
– Network effects ≠ virality
– Virality = rate of user adoption
Marketplaces usually have low virality but high two-sided
network effects, which creates defensibility.
15. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
16. Building a marketplace
There is a chicken and egg problem in the early days of a
marketplace: getting both buyers and sellers onto the
platform.
First, you need to devise an effective strategy for
increasing supply.
Next, you need to get to that virtuous cycle of supply and
demand.
17. Stage 1: Seeding your supply
1. Identify unique supply, e.g. those who don’t sell online
2. Convince existing sellers to list on your platform
3. Bring customers to a provider
4. Pay for inventory to artificially create supply at the
outset, but know it’s not scalable
5. Aggregate inventory that is listed elsewhere, but know
you will run the risk of becoming a cross-platform utility
rather than your own marketplace
18. Stage 2: Growing a Marketplace
High Number of
Quality Suppliers
Attracts More Customers
Brings More Suppliers
Helps to Draw Even
More Customers
The cycle continues as a self-sustaining growth engine until supply
& demand reach critical mass to be “winner takes all.”
Holy Grail: The Virtuous Cycle of Supply & Demand
19. How to create a virtuous cycle (1/2)
1. Identify and double down on things that work in your
marketplace
– What works on both supply and demand sides? (i.e. within
certain geographies, audience segments, price points, etc.)
– Initially, you may have to manually recruit members and do
things that don’t scale (e.g. Airbnb rented a $5,000 camera and
took professional pictures of New York listings).
20. How to create a virtuous cycle (2/2)
2. Be patient: marketplaces take time
– Can take 3+ years to establish buyer and seller communities
• e.g. Indiegogo was founded in 2007 but broke out in 2011.
– Look for signals that you’re on the right track, such as:
• Increased word of mouth from early adopters
• Increased repeat usage from buyers
• Increased listings from sellers
• Positive user feedback
21. Stage 3: Scaling your marketplace (1/5)
1. Foster trust and safety
– Establish trust and credibility with transparency
• Use a rating system, user reviews, or testimonials
– Consider some level of guarantee like service quality, delivery
time, or payment
– Follow up personally whenever the terms of a transaction are
broken
22. Stage 3: Scaling your marketplace (2/5)
2. Support power sellers – those who earn a living off your
marketplace
– e.g. ThreadFlip gives its sellers boxes and mannequins to help
them display used clothes, and holds regular one-on-one calls
for feedback.
– e.g. eBay’s offers power sellers priority customer support, unpaid
item protection, and “top-rated Seller” designation.
23. Stage 3: Scaling your marketplace (3/5)
3. Develop an ecosystem that supports third-party apps
and services
– e.g. Other startups offering guest screening and catering for
Airbnb hosts
24. Stage 3: Scaling your marketplace (4/5)
4. Prevent leakage
– Always a risk that buyers and sellers will settle the transaction
offline, which prevents your marketplace from capturing revenue
– Have a great UX for your users to communicate
– Consider adding a rating system that suppliers value and buyers
need in order to trust quality
25. Stage 3: Scaling your marketplace (5/5)
5. Build a moat
– Uniqueness of your supply will likely fade over time
• Suppliers will seek out opportunities on other marketplaces
• Competitors will grab market share that you discovered
– Protect your supply
• Lower listing fees for unique inventory
• Tie sellers to your site through reviews
• Find innovative models like Uber’s leasing model
– Protect buyer mindshare
• Find the right product mix to become a frequent destination
for your customers
26. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
27. Finding the right business model
Fees introduce friction to buyers and sellers transacting.
Whoever is charged will try to go off-platform.
The right business model depends on your marketplace:
– If buyers make purchases with little back and forth, then seller
transaction fees are the way to go.
– If the marketplace acts purely like the classifieds, listing fees
make more sense.
Most marketplaces will take fees from sellers since demand is
the limiting factor for growth.
28. Listing fees
Charge suppliers to list on your site
– Since sellers pay to list an item, they invest time into each listing
and only list items with a high chance of selling which helps
create a better experience for buyers.
– All vendors are hit equally, no matter how many sales they make
on the site. This may discourage some from listing and make it
difficult to gain new suppliers.
29. Transaction fees
Take a cut from each transaction
– Fairest for suppliers as they only pay a fee when they sell
something
– Less friction for a seller to join when there are no upfront fees
– If you only charge when a sale is made, you lower the supplier’s
risk of losing money
30. Subscription fees
Charge buyers for access to the marketplace
– Value proposition needs to be strong to entice buyers to pay a
subscription.
– Unlike a SaaS tool, which can be continually useful, the lifespan
of a marketplace’s utility can be limited.
– e.g. Angie’s List charges buyers a membership fee in order to
search the directory and view ratings; Care.com has a freemium
model with enhanced services for both buyers/sellers.
31. Enhanced seller services
No listing fees but charge for optional services
– Low entry cost brings more suppliers, but revenue may be
modest so “freemium” works best for companies that serve a
huge market, such as Etsy.
32. Lead-based model
1. Charge suppliers to contact customers when services
delivered offline (e.g. Thumbtack).
– Works with new connections but ineffective with a high frequency
of purchases from same vendor.
2. Stay close to the transaction by productizing service
and simplifying user experience
– e.g. Elance offers hourly/project tracking and billing solutions
that encourage the provider (freelancer) and customer to stay on
the platform.
33. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
34. At their core, every marketplace is similar: there’s a seller
and a buyer and it acts as an intermediary to bring these
two sides together.
As the industry matures, new marketplace models emerge.
New marketplace types
Buyers SellersMarketplace
35. For odd jobs For laundryTo buy and deliver groceries
Smartphones can summon anything: this is the “on-demand” economy.
It is a continuation of the sharing economy, exemplified by Uber and
Airbnb, where people turn underused assets (home, car, time, etc.)
into a source of revenue.
Today’s on-demand marketplaces match jobs with contractors.
On-demand marketplaces
36. Uber Other
Underlying
Commoditized
Services
People tend not to care who drives
them from A to B.
People do care who cuts their
hair, babysits their children, etc.
High Purchase
Frequency
Regular usage leads to customers
using the same service - urbanites
may use Uber multiple times a day.
Lower purchase frequencies
make it difficult to retain
mindshare.
True On-
Demand Use
Case
Sufficient liquidity on the supply
side is required and creates a
barrier to entry since a new
competitor will need to launch with
hundreds of providers.
When services are delivered with
more flexible timing, it’s easier for
competitors to enter a vertical or
new location, and there’s less of
a winner-takes-all dynamic.
Why there won’t be an Uber for every vertical
37. Managed marketplaces
Pros Cons
Can be a game-changer when
dealing with high-value ticket items
Cuts into gross margin and adds operational
complexity. May need to reach massive scale in
order to reach profitability
Can create new supply and demand
by helping buyers overcome trust
issues
Risk involved if you guarantee the sale and take on
sellers’ inventory. What if you end up sitting on
inventory that’s can’t move?
Processes/operations are vertical-specific. This
offers little synergy to move into a new vertical.
Those that take on additional parts of the value chain to
deliver a better overall experience.
– e.g. Beepi (P2P marketplace for used cars) will buy your car if
you don’t sell within 30 days
38. Hosts local meet-ups
and added community/
team functionality
Holds driver meet-ups
and community rallies,
which have become
Lyft traditions
Community-driven marketplaces
Brand and sellers form communities with others who have
similar interests.
Created online forums,
which triggered micro-
groups to form
39. SaaS-enabled marketplaces
Sellers are attracted to a useful free tool, then encouraged
to participate in the marketplace.
– Chris Dixon described this approach as “come for the tool, stay
for the network.” (e.g. OpenTable, Zenefits)
– Some sellers may wish to use your tool but fear joining your
marketplace because of competition.
– Requires ongoing use of the marketplace, may not work in cases
where consumers prefer a “monogamous relationship”.
40. Decentralized marketplaces
Fee-free and user-driven marketplaces with flattened
hierarchies and decentralized control: anyone sells,
anyone buys.
– Everything from trust, rules, identify, to payment, operates at the
peer level.
– OpenBazaar allows users to conduct P2P transactions with the
help of notaries, Bitcoin, multi-signature transactions, and a
reputation system.
– Decentralized marketplaces need to figure out how to monetize
and create defensibility without inherent network effects.
41. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
42. Marketplace Metrics
The dashboard is
separated into 3 parts:
1. Overall marketplace
metrics
2. Seller/supplier
metrics
3. Buyer metrics
We created a marketplace KPI spreadsheet.
43. Overall Marketplace Metrics (1/2)
Gross merchandise value (GMV)
= Total sales dollar value for good or services purchased through
marketplace over a certain time.
– Track GMV growth rate on a monthly and yearly basis
– Understand its makeup by customer acquisition channels, paid
versus organic, etc.
Average order value (AOV)
= GMV / Total number of transactions
44. Overall Marketplace Metrics (2/2)
Revenue
= Income that the company receives (e.g., transaction fees, listing
fees, premium seller/supplier services, etc.).
Take rate
= Revenue / GMV
45. Seller/Supplier Metrics
* recommended at a minimum
General KPIs Engagement KPIs*
Number of suppliers
Supplier growth rate
Number of listings
Listings growth rate
Average listing price
Sell-through rate
Customer acquisition cost (CAC)
Cohort analysis: % of suppliers still
active 1 month and/or 1 year after
signing up
GMV retention: average % of Month
1 GMV generated by suppliers in
Month 12
Concentration: % of revenue
generated by the top 20%
suppliers
Net promoter score (NPS)
46. Buyer Metrics
General KPIs Engagement KPIs*
Number of buyers
Buyer growth rate
Average dollar amount purchased
per buyer
Average number of orders per buyer
Average order growth per buyer
Customer acquisition cost (CAC)
Repeat buyer contribution:
% of buyers who have purchased
more than once
% of GMV generated from buyers
in previous months
GMV retention: average % of Month
1 GMV generated by buyers in
Month 12
Concentration: % of revenue
generated by the top 20% buyers
Cross pollination: % of buyers who
spend in another category
Net promoter score (NPS)
* recommended at a minimum
47. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
49. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
50. What investors look for
We encourage you to read Bill Gurley’s outline of 10 factors to
consider when evaluating marketplaces. Our 5 most important
criteria are:
1. High fragmentation
2. Regular frequency of use/purchase
3. Discovery/new buyer-seller relationships (vs. monogamy)
4. Total Available Market
5. Transactional (being part of the payment flow)
These aren’t the only ones that lead to success: some VCs feel
that a marketplace with low purchase frequency can be offset
by high AOV.
51. What traction we want to see
Every startup is different and we conduct our due diligence
on a case-by-case basis.
– There is a general set of questions we use to evaluate a
marketplace and assess a startup’s product-market fit.
– Please refer to the guide for an example using Headout, a
Version One portfolio company.
52. Valuation multiples for marketplaces
The main multiple we like to use for marketplace
businesses is GMV.
– Rule of thumb: marketplaces at scale are valued at roughly 1x
annualized GMV or typically about 6-8x annual revenue
– Assumptions for valuation:
– Scale > $1B GMV
– YoY growth >= 30%
– Take rate = 10-15%
There’s a currently a disconnect between the valuations for
public and private consumer marketplaces.
53. Example: Etsy
GMV multiple was as high as 1.7 immediately after IPO.
2015 Total Revenue ~$270M
2015 Total GMV ~$2.4B
Take Rate 11%
YoY Growth ending Q1 2016 40%
Market Cap (as of 5/11/2016) ~$963M
Revenue Multiple 6.8
GMV Multiple 0.76
54. What about early-stage marketplaces?
Early metrics don’t count into valuation. We’re evaluating
the team, idea, and vision.
As the marketplace starts to scale fast, the multiples are
often very high because growth is high as well.
Ultimately, however, your marketplace will be valued at 1x
GMV.
55. What you should focus on
Early-stage founders should focus on:
1. Growing GMV
2. Proving out take rate
Occasionally, we see impressive GMV but no proof that
companies can get a significant take.
– A marketplace that generates leads might have a low take rate of
2-3%. In this case, GMV must be 5x bigger than a comparable
marketplace with 10-15% take rate.
The bottom line? Don’t wait too long to prove out
monetization
56. Chapter 1: Introduction to Marketplaces
Chapter 2: Seeding, Growing, and Scaling a Marketplace
Chapter 3: Finding the Right Business Model for your Marketplace
Chapter 4: New Marketplace Types
Chapter 5: Marketplace Metrics
Chapter 6: Marketplace Tools
Chapter 7: Working with Investors
Conclusion
57. Looking ahead
Marketplaces are tough to build, but once they reach liquidity, they can
be even tougher to kill.
Buying and selling is an integral part of daily life, and there’s still great
opportunity for innovation in new verticals, models, and monetization
strategies.
More than a third of Version One’s portfolio is marketplace companies.
We continue to learn from successes and how to overcome challenges.
We’re excited to be active investors in this space and are looking
forward to the journey ahead.
58. Thanks for reading!
Angela Kingyens
@atkingyens
angela@versionone.vc
@bwertz
boris@versionone.vc
Boris Wertz