Wednesday, May 18, 2022

What other metrics are they looking at in in a two-sided marketplace?


  • Buyer-to-Seller Ratio - the ratio of buyers and sellers.
  • Percentage of revenue generated by Top 20% Sellers - the percentage of revenue generated by the TOP 20% of sellers. May also be called Concentration.
  • Match rate – the rate at which buyers can find sellers, and vice versa. How to define this metric depends on the unique business. The calculation depends on the characteristics of the business. For example, in the case of Uber or Uklon, it makes sense to measure the conversion of trip requests into trips themselves. For Profi - a request for a service in the fact of a transaction.


For classifiers:

  • Total № of Listings
  • № of New Listings
  • Listings Growth Rate (%)
  • Average Listing Price
  • Liquid Items - the number of ads that received more contacts than a certain threshold in the last X days,
  • Liquid Users is the number of sellers who have received enough contacts on their ads to be able to sell at least one of their ads.


For advertising:

  • Revenue / –°ost per mille (rCPM) - monetization of buyers through viewing external advertising. The metric shows how much the platform earns on average from a fixed number of views.
  • Advertising Pageviews (PVs) - The number of page views that host banner ads, used to calculate rCPM.

Metrics that are universal for monetization models:
  • Contribution Margin – revenue minus COGS, acquisition cost, payment system fees and other variable costs.
  • Discounts – the amount of promotional codes subsidized by the marketplace for the purchase (refers to costs).

Tuesday, May 17, 2022

Key Metrics in the two-sided marketplace as part of monetization


  • Churn Rate is the percentage of users who stop using the product within a certain period.
  • Percentage of Buyers who have purchased more than once (%) - the percentage of buyers who have made more than one order. In some products, it is called the Repeat Purchase Rate and also shows how many customers return after the first purchase.
  • Net Promoter Score - an index of consumer loyalty or an index of willingness to recommend a product.
  • Percentage of Buyers whose second purchase is in a different category (%) - the percentage of buyers whose second purchase belongs to a different category.

For sellers:

  • Percentage of Sellers still active after 1 month/ 1 year (%) - the percentage of sellers who remained active during the month / year.
  • Seller or Supplier NPS - seller loyalty index.


The metrics depend on the monetization model. Marketplaces and delivery aggregators most often operate within a transactional model. Classifieds predominantly use advertising and subscription models.


For transactional:

  • Gross Merchandise Volume (GMV) is the total volume of sales through the platform over a certain period of time.
  • GMV Growth Rate M-o-M / Y-o-Y - GMV growth (%).
  • # of Transactions - the number of completed transactions.
  • Average Order Value (AOV) - the average size of one transaction.
  • Gross Transaction Value (GTV) - the amount of commissions received by the platform from transactions, can be called revenue from transaction fees.
  • Lifetime Value (LTV) is the lifetime value of a customer. Shows the profit that the buyer brings for all the time, remaining a client.


For the subscription model:

  • Buyer Direct ARPU - direct monetization of buyers - how much each buyer pays per day on average for providing unique services (for example, access to the ad database).
  • Seller ARPU - monetization of active sellers - how much revenue the platform receives on average per active seller per day.



What other metrics are they looking at in in a two-sided marketplace?

Buyer-to-Seller Ratio - the ratio of buyers and sellers. Percentage of revenue generated by Top 20% Sellers - the percentage of revenue gene...