On-demand marketplaces: How to pull levers to reach Supply-Demand Equilibrium
This is the first in a series of posts summarizing our speakers’ insights from the Data-driven Marketplace Meetup on May 16. Today, we just need to pick up a phone to order groceries or a fully cooked meal, or hire someone to do our laundry or walk the dog. The rise of on-demand service apps […]
Growing a marketplace: how to spark the virtuous cycle
The virtuous cycle is the holy grail for online marketplaces. In this positive feedback loop, a high number of quality suppliers attract more customers; then more customers attract more suppliers to join. This cycle continues as a self-sustaining growth engine until both supply and demand reach critical mass to be “winner takes all.” But how […]
The emergence of managed marketplaces: greater opportunities but a lot more risk
One of the more interesting developments over the past few years is the emergence of managed marketplaces. The term means different things to different people, but I consider it a marketplace that not only connects buyers and sellers, but takes on additional parts of the value chain to deliver a better overall experience. For example, […]
Marketplace dynamics: buyer mindshare is key to building a moat
Most marketplaces start off by providing a unique supply of products/services. Demand follows supply, and so the flywheel of supply and demand begins. However, as a marketplace gains popularity, its supply inevitably becomes less and less unique. I know this firsthand. At AbeBooks, our booksellers initially listed only with us, but then started to list […]
How to spark demand when creating a new market space
When it comes to market opportunities, you can either build a better product in an existing market, or create a brand new market altogether. In the first case where the product category and market are mostly defined, the playbook is relatively straightforward. Potential customers already know they have a need and are actively looking for […]