Point Nine Land
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Point Nine Land

WTF is Marketplace Liquidity?

Buyer Liquidity

  • For Amazon or Ebay, this could be the percentage of search sessions over a given month that result in a purchase.
  • For Hired or Upwork, it could be the percentage of job postings within a certain period that result in a candidate getting hired.
  • For Uber, this could be the percentage of requests per week that result in rides.

Supplier Liquidity

  • For Amazon’s marketplaces or Ebay, this could be the percentage of stock at the beginning of the month that is sold at the end of the month.
  • For Airbnb, this could be proportion of rooms booked every night.
  • For Uber, this could be the proportion of drivers that are full-timers e.g. working more than 40 hours per week.

Three Types of Marketplaces

  • These marketplaces require the buyers and sellers to both commit to a transaction.
  • These marketplaces require suppliers to enter their availability and the type of products or services they offer onto the platform. The buyers then commit to a transaction.
  • In these cases, the buyers request a service and are automatically matched to the suppliers.

Buyer to Supplier Ratio

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