How markets work
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This document discusses three key metrics for online marketplaces: liquidity, matching efficiency, and quality of participants. Liquidity refers to the volume of supply and demand that allows transactions to occur. Matching efficiency is how easy it is for buyers and sellers to connect and begin trading. Quality of participants relates to whether users can trust that others in the marketplace are honest. The document then provides three specific metrics that can measure each of these factors: percentage of listings that lead to transactions measures liquidity, percentage of searches that lead to profile visits measures matching efficiency, and percentage of recommendations per number of transactions measures participant quality.
How markets work
- 9. Liquidity: the critical mass that provides enough volume of supply and demand for transactions to take place. Matching efficiency: how easy it is for buyers and sellers to meet up and begin trading. Quality of participants: how can participants know that they are dealing with honest and trustworthy people. Based on the article by S.P. Choudary http://platformed.info/online-marketplace-metrics/
- 10. Percentage of listings that lead to transactions: measures the liquidity of the market. Percentage of searches that lead to profile visits: measures the matching efficiency of the market and shows how well curated is the service. Percentage of recommendations per number of transactions: measures the quality of the participants in the market and shows how well curated they are. Based on the article by S.P. Choudary http://platformed.info/online-marketplace-metrics/
- 20. www.cypsel.com