Marketplace
TLDR
A platform where two or more distinct user groups transact with each other, with the operator capturing value from each transaction.
Definition
A marketplace is a business where the core product is not a good or service the company produces itself, but a venue where independent buyers and sellers transact. The operator sets the rules, provides payment infrastructure, and captures a fee, typically a percentage of transaction value.
Marketplaces differ from B2B SaaS in revenue model: SaaS charges subscription, marketplace charges transaction fees. Some companies do both, running a SaaS tool with an optional marketplace layer.
Why it matters
Marketplaces have a distinctive cold-start problem: neither side of the market will show up unless the other side is already there. Solving this problem is a different operating discipline than running a SaaS company, which is why marketplace founders are often a distinct talent pool.
Several Belgian companies operate marketplaces, ranging from peer-to-peer rentals to B2B supply networks. The Vertical SaaS and marketplace patterns sometimes combine when a vendor layers transactions on top of an existing software product.
Mechanism
The operator's margin comes from the take rate: the percentage captured per transaction. Take rates range from under 1% for high-volume financial marketplaces to over 20% for small-value consumer marketplaces. The take rate is constrained on one side by the cost of providing the platform (infrastructure, trust, dispute resolution) and on the other by the ability of either side to go direct without the marketplace.
Related
- Parent: B2B SaaS - shares infrastructure and sales motion
- Sibling: Vertical SaaS - often combined with marketplace mechanics
- Sibling: Product-Led Growth - marketplaces often rely on PLG for cold-start