1 Jun 2020

Marketplace Liquidity: How Side Switching Can Help

Marketplace Liquidity

So far, I have explained some of the key characteristics of marketplace network effects. This includes the impact of fragmentation, geographic range, supply differentiation, SaaS integration and engagement. But none of this is remotely useful unless startups can actually get transactions flowing on their marketplace. In order to bootstrap these interactions, marketplaces need to hit a critical mass of demand and supply. In other words, they need to have “liquidity”.

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