marketplace

“My epiphany eBay was at least for a marketplace, it's really a platform. And what that means is that when you build new functionality and capabilities, it's not enough to think about what the app can now do. And it's not the same as an application where, of co…”

“I generally advise founders against marketplaces phase two of the company. So there are a lot, a bunch of people were like, ah, SaaS to marketplace transitions. That's the model. And I'm like, name an example in the last 10 years where that's actually worked. …”

“Marketplaces are not really usually winning on the software itself. Only if the software helps you find more selection on the demand side or brings you more money on the supply side.”

“It's generally lower take rate. If you have a take rate model, it's gonna be more like five percent versus 15%. And then of course you're paying the payment processing. It's harder to build a massive scale business. So you see fewer venture wins in that catego…”

“As we look at most of the winners in marketplaces, you know, where I would say small winners from like a hundred million to a billion or bigger winners, which are a billion or more, most of them are single category, but then there's some really big outliers th…”

“In today's environment where like paid is pretty hard to get an edge on any sort of edge you have will generally get competed away by competitors coming into the market. You're looking to see that someone's not going to rely on paid or sales for everything unl…”

“If you're going to be low frequency, then you need to be high AOV. And if you can't be high OEOV, then you need to be high take rate on the low frequency. And if you can't get any of those to work, then chances are that a marketplace is not going to be an opti…”

“The difference between a marketplace and what I would call like a SaaS network is that a marketplace is primary value prop to the supply is that you bring the demand.”

“The flip side of that is it creates a dynamic where only power sellers remain that can do all the standards. So the more, you know, individuals a lot of times can't keep up with the demands of the marketplace. And you certainly eBay is a prominent example of t…”

“One is discounting to product market fit does not get you to product market fit. So in a marketplace, you are selling people on the value of the selection, on the value of, you know, the service. And if you then give a five dollar discount, then you start chan…”