As a matter of fact, the model of the marketplace requires a seller (supply) and buyer (demand) side and acts as an intermediary to bring them together.
Here is a great example of a Marketplace KPI dashboard helping founders manage their business. Below are some screenshots of the template which you can also access via the Google doc here (make a copy of it and then you can edit away).
The dashboard is separated into three dimensions to measure the efficacy of your business: 1) overall marketplace metrics; 2) seller/supplier metrics; and 3) buyer metrics.
Overall Marketplace Metrics
Gross merchandize volume (GMV) is the total sales dollar value for goods sold or services purchased through the marketplace over a certain time. Given that GMV is one of the most important marketplace KPIs, founders should track its growth rate on a monthly and yearly basis, and understand its makeup by customer acquisition channel. With GMV and the total number of transactions, we can compute the average order value (AOV) since:
GMV = # of Transactions * AOV
Revenue is the income that the company receives from facilitating connections in the marketplace. It comes in the form of transaction fees, listing fees, and/or the offering of premium seller/supplier services. With revenue and GMV, we can calculate take rate via:
Revenue = GMV * Take Rate
In addition to take rate, we can evaluate business efficacy by calculating the total customer acquisition cost (CAC) of buyers and sellers/suppliers as a percentage of revenue.
Start with general seller/supplier and growth KPIs, for example:
- Number of sellers/suppliers
- Sellers/suppliers growth rate
- Number of listings (n.b. in a services marketplace, this is not applicable so perhaps consider the number of active suppliers at a specific time instead).
- Listings growth rate
- Average listing price
Engagement KPIs are most important to the seller/supplier side so make sure you track these at the very least – examples:
- Cohort analysis: percentage of sellers/suppliers still active 1 month and/or 1 year after signing up
- GMV retention: average percentage of Month 1 GMV generated by sellers/suppliers in Month 12
- Concentration: percentage of revenue generated by the top 20% sellers/suppliers
- Net promoter score (NPS)
Similar to seller/supplier metrics, we can categorize these into general and engagement.
General KPIs – examples:
- Number of buyers
- Buyer growth rate
- Average dollar amount purchased per buyer
- Average number of orders per buyer
- Average order growth per buyer
Engagement KPIs on the buyer side – examples:
- Repeat buyer contribution: percentage of buyers who have purchased more than once; and percentage of GMV generated from buyers in previous months
- GMV retention: average percentage of Month 1 GMV generated by buyers in Month 12
- Concentration: percentage of revenue generated by top 20% buyers
- Cross pollination (if applicable): percentage of buyers whose second purchase is in a different category