Startup Funding Espresso – Metrics for Marketplaces

Metrics for Marketplaces Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In running a marketplace business there are several metrics for measuring the performance of the market and platform. Here are some key metrics to consider: Gross Volume -- this is the total amount of goods and services transacted on the platform. Activity -- the number of times a buyer engages the platform yielding the number of daily and monthly active users. Average transaction value -- the average value of the transaction indicates the size of the market. The concentration of buyers and sellers -- this measures the percent of business that comes from the top five, ten, or twenty buyers or suppliers on the platform highlighting over-concentration. Cost of acquisition of suppliers and buyers -- this calculates the cost of placing inventory on the platform and acquiring buyers. The lifetime value of buyer -- this estimates the value of the purchases over the lifetime of the buyer on the platform. Multitenating -- this calculates the number of sellers and buyers who are also on other platforms. Switching costs -- this calculates the cost of the buyer or seller to move to another platform. Take rate -- the percent of the sale that is taken for the transaction. Measure these key marketplace metrics to better understand your marketplace business. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.