Top Margins to Consider For Business Growth in 2021

Top Margins to Consider For Business Growth

Marketplace Analytics: Top Margins to Consider for Your Business Growth: As the growth of online marketplaces is promised, the competition is increasingly becoming stiff.

With the availability of online platforms that offer service providers to customers online on their demands, it has become difficult to earn profits and increase revenues.

In times like this, analytics helps save the costs spent setting up a business by choosing the right field where revenues are higher.


4 Most Important KPIs for Marketplace Analytics

      Apart from calculating total revenues, it is essential to understand and calculate the value of these KPIs (Key Point Indicators) to ensure your business earns more profits than ever.



      Gross Merchandise Value (GMV) is the total revenue earned by selling items or services in the marketplace online or offline. Calculating the GMV requires you to know complete details of revenue and the services you have availed of which charges have been collected.

This helps in understanding the business’s size while does not clear the idea of how the revenue is earned and what the source is exactly. The growth in GMV indicates the growth of the business and, ultimately, the growth of the entire marketplace.


Take Rate

    Also known as “Rake,” take rate is the rate captured by the total marketplace from earned GMV.

In another language, the take rate can be named the charge that marketplaces take when a new business starts offering their services or selling products.

The lower the take rate is kept, the easier it becomes to enter the market. For example, a platform working on the Netflix business model offers streaming services collects subscription fees from customers upon using their services. If these prices are low, more service providers and customers can join the platform and use it efficiently.


Buyer-to-Seller Ratio

    In the peer-to-peer marketplace, the condition of buyer-seller overlap is found. The buyer from one business is a seller also, and hence, the buyer-to-seller ratio is required to be calculated.

However, for the buyer who is also a seller, the CAC ratio decreases, and it benefits the business the most. It helps in calculating the efficiency and churn rate of a business. The churn rate is higher in this situation while the number of transactions is increased.


Net Promoter Score

This tool is used to measure customer satisfaction.

Finding out the score helps to know the customer better and also understanding what a customer needs from your business and providing services accordingly.

The most basic way of mapping the net promoter score is by asking a simple question to each customer, whether they are likely to recommend your brand’s app to others, whether they found a Spotify business model useful.

The answer received, and the ratings display what the service is actually providing and how customers want it to be.



A marketplace business running successfully needs to keep all the required criteria in mind. As the competition in the market is becoming fierce, it is required for businesses to keep analyzing their business performance through the KPIs that are essential and useful at indicating whether a business has earned success or not. And with the latest tools and technology of today, it is important for businesses to start analyzing their business efforts to achieve tremendous success in the competitive marketplace.

Marketplace Analytics: Top Margins to Consider for Your Business Growth


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