Marketplace Platform Evaluation

I frequently have conversations with CTOs about a recurring theme: their commerce platform has become a key limiting factor to their business ambitions. Recently, I spoke with a technical leader whose team spends 85% of their time on maintenance instead of building new customer features. Another spent months custom-building Apple Pay integration when it should have been a simple configuration. A third couldn't launch their planned promotional campaigns because their platform couldn't handle the required personalisation and pricing flexibility. The pattern I see? Platforms that were previously fit for purpose are now constraining growth in ways that directly impact the bottom line. To address this, our team worked together to create a diagnostic specifically for technical leaders. It's a 20-question assessment that reveals where your platform might be limiting your ability to: 🚀 Scale without performance anxiety ⚡ Ship features at the pace your consumers and business demand 🌏 Expand to new markets quickly It takes 10 minutes to complete, gives you a scored breakdown and is designed to provide genuine insights you can actually use for strategic planning. If you're a technical leader balancing innovation with operational stability and platform constraints, check out the assessment here: https://lnkd.in/grwN9qes The clearest path forward starts with honest assessment of where you are today.

The eternal question of all marketplace people: Which marketplaces are the right ones for my business? We passed this perennial question on to our partner PlentyONE, who offers connections to over 150 platforms with its middleware. In return, we received a detailed checklist for brands and manufacturers who are planning to enter or expand their presence in the marketplace business. Here are the most important strategic questions: ❓ Where do your target customers shop (e.g. D2C vs. B2B, geographic reach)? ❓ What is the industry focus, does the marketplace fit your company image and values? ❓ What is the pricing structure? How are your competitors active on the marketplace? ❓ Data requirements and service level agreements: Can the marketplace be served with little (additional) effort and resources? 💡 Tip💡 Use white spots: Choose marketplaces that give you access to new foreign markets or new customer groups. Look out for attractive niche marketplaces. ❓ Does the marketplace offer access to several countries as well as international shipping and support (e.g. translation, customer service, etc.)? ❓ Does the marketplace offer its own logistics solutions? ❓ What fees does the marketplace charge (transaction and sales commissions)? ❓ What options are available for product placement and advertising (e.g. sponsored ads, brand stores)? 💡 Tip 💡 Asking questions doesn't hurt! Create a list of questions about your most important business case metrics and send it to the marketplaces. Ask your service providers and network about their experiences. In addition to the strategic questions, the processes should not be forgotten: ✅ Is your e-commerce platform compatible with the desired marketplace and is there a connection? ✅ Are interfaces for automated processes (e.g. EDI, API links) available? ✅ Can your product data, inventory and prices be automatically synchronized with the marketplace? ✅ Are all the necessary documents for the marketplace connection stored? ✅ Is your brand registered on the marketplace? ✅ Are all product titles and descriptions search engine optimized? ✅ Do you have high-quality media content that meets the marketplace's standards? ✅ Is your pricing strategy aligned with the marketplace terms? ✅ Can customer inquiries be answered quickly? 💡 Tips for long-term success 💡 ➔ Use marketplace campaigns to build a loyal customer base. ➔ Expand your product portfolio: Is it possible to launch new products or product variants on the marketplace in a targeted way? ➔ Always be on the lookout for new marketplaces and sales channels. By the way, you can find out how these tips are implemented in practice in episode 94 of our podcast “Let's talk Marketplace”. There, Ingrid talked (in German) at length about marketplace selection with Julia Kühnberger, Head of Amazon & Direct-to-Consumer at Cherry Europe GmbH and Johannes Blindhuber from PlentyONE. Listen in here: https://lnkd.in/ddnUSjPB

Cracking the Code: Beyond Surface Metrics to Mastery (B2C Marketplaces)  What good VCs look for in Consumer Marketplace Startups. 1️⃣ FIRST ORDER METRICS - Performance based (Surface level - Attention grabbing - easy to perceive and filter)  1. GMV = Total value of goods or services transacted on the platform ↳ Shows potential for revenue and scaling 2. Take Rate or Margin = % of each transaction ↳ Reflects the platform's monetisation efficiency 3. Customer Acquisition Cost (CAC), Lifetime Value (LTV) 4. User growth, retention, repeat etc. 2️⃣ 2ND ORDER METRICS - Value Proposition (Subtle indicators for success - elusive - though most VCs get it) 1. Total Addressable Market (TAM) 2. Nuanced Growth: Buyer & Seller  ↳ Repeat Transactions (Cohort-Based) → Increase = Higher value add 3. DAU / MAU (Daily vs Monthly active) ↳ Stickiness to the platform etc. 3️⃣ 3RD ORDER METRICS - PMF / Moat (Actual Success indicators - Fairly Nuanced & elusive) only experienced investors perceive them  1. Matching (actual facilitation) supply & demand ↳ Indicates platform's efficiency and user satisfaction ↳ Time to Match: Avg. time for a buyer to complete a transaction. ↳ Market Depth: Ability to sustain relatively orders (future) without volatility ↳ Market Liquidity: % of listings that result in transactions. ↳ Higher liquidity suggests stronger product-market fit 2. Network Effects Potential ↳ Ability of the platform to become more valuable as more users join ↳ Assessed through growth dynamics and user interaction patterns ↳ Strong network effects create competitive barriers If you are building in the consumer space - feel free to connect.

🚀 Investing in Online Marketplaces? Don't Overlook These 3 Vital Metrics!💰 (0 & 20, a series of Last Money In) Today, we’re featuring Colin Gardiner, a marketplace geek and the founder of Yonder Ventures investing in marketplaces and Karta Labs which advises marketplaces. He is the former CPO/CRO at Outdoorsy and Roamly as well as Tripping.com, Ancestry and JustAnswer. He is also the co-host of Wannabe Angels, a podcast about the in and outs of angel investing. – When it comes to evaluating the potential of an online marketplace, it's essential for investors to focus on the right metrics. Here are the bare minimum metrics you should be considering: 1) Gross Merchandise Value (GMV): This metric represents the total value of goods and services transacted on the platform. It's a key indicator of a marketplace's scale and growth potential. Fast growing and meaningful GMV is usually a promising sign of product market fit. However, it's important to look deeper, as GMV alone can be deceptive. 2) Take Rate: This metric measures the percentage of each transaction that the marketplace retains as revenue. A healthy take rate is crucial for the platform's profitability. It's also a reflection of the marketplace's pricing power and ability to capture value from its users. 3) LTV/CAC (Lifetime Value to Customer Acquisition Cost): This ratio assesses the long-term value e.g. margin a customer brings compared to the cost of acquiring them. A high LTV/CAC ratio is indicative of efficient customer acquisition and strong customer retention strategies. It's essential for the sustainability and profitability of the marketplace. Understanding these metrics is vital for several reasons: ✅ Holistic Insight: GMV, Take Rate, and LTV/CAC provide a holistic view of the marketplace's performance, combining its scale, revenue generation, and customer acquisition efficiency. ✅ Profitability: Take Rate and LTV/CAC directly impact a marketplace's profitability. Investors need to ensure that the platform is on a path towards sustainable growth. ✅ Marketplace Viability: These metrics offer a deeper understanding of the marketplace's viability, which is crucial for long-term success and building a network effect. As an angel investor, being well-versed in these three metrics can help you make informed investment decisions and support the growth of promising online marketplaces. For a more in-depth exploration of the nuances of marketplace metrics, I highly recommend reading Colin's article "Why Is Marketplace Revenue So Funky?" linked in the first comment.