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Online marketplaces have proliferated due to their success in displacing inefficient legacy distribution channels within large consumer purchase categories. High-performing marketplaces deliver a strong value proposition for both buyers and sellers, while also providing lucrative business model economics for operators. The complex, two-sided nature of a marketplace heightens the need to understand and monitor critical metrics that provide insight into a platform’s health and trajectory. Insight’s infographic, Periodic Table, definitions and commentary summarize the key metrics we use to evaluate marketplace businesses, along with benchmarks we’ve observed in public and private companies at various stages of maturity.
