Oldie but goodie on marketplace liquidity.

Liquidity is the lifeblood of marketplaces. It is the efficiency with which a marketplace matches buyers and sellers on its platform. One could say that a marketplace without liquidity has no real product because the ability to transact on the platform IS the product.

Buyer liquidity represents the likelihood that a request or a search leads to a transaction.

Supplier liquidity is best captured by measuring the *Utilization Rate* of the supply side.

Oldie but goodie on marketplace liquidity.

Liquidity is the lifeblood of marketplaces. It is the efficiency with which a marketplace matches buyers and sellers on its platform. One could say that a marketplace without liquidity has no real product because the ability to transact on the platform IS the product.

Buyer liquidity represents the likelihood that a request or a search leads to a transaction.

Supplier liquidity is best captured by measuring the *Utilization Rate* of the supply side.

https://medium.com/point-nine-news/wtf-is-marketplace-liquidity-f2caca3802c0

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Yea but it’s been a few years. Good reminder to flip through again. What was your main takeaway from it?

Have you read Modern Monopolies? It’s my go to resource for folks wanting to learn more about marketplaces.