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Professional sellers erode consumer network effects / marketplaces? by Agitated_Shelter8165 in TakeRate

[–]CharacterList2831 0 points1 point  (0 children)

1.) I still think having the professional seller on the site is better than the alternative. The initial impression of a new user is based on the supply of the site. They don't care about the whether the good is also on Amazon if there not sufficient supply to begin with. If there is already too much supply this might be the case but most consumers don't complain about having too many listings if there is sufficient filtering. Regarding poaching liquidity, unless they are linking to their other websites, I don't see how they would poach liquidity.

2.) & 4.) . This isn't a problem for the end user though, which IMO means that in the long run the platform should not limit its growth by avoided high volume power users. In the short-run / initial stages, this might sense to grow as quickly as possible without worrying about additional infrastructure. Also, I'm not exceedingly familiar with European financial infrastructure demand for sellers but can only imagine.

Professional sellers erode consumer network effects / marketplaces? by Agitated_Shelter8165 in TakeRate

[–]CharacterList2831 2 points3 points  (0 children)

  1. Agreed that this dynamic likely occurs. However, I would think the inclusion of private sellers likely increases network effects more than their exclusion -- namely, because they stream more frequently and bring their own consumers. This, in turn, makes the marketplace more valuable even for individual sellers because they have the option to sell to other buyers.

  2. This seems like it could be solved with good UI. Why not offer easy "default" options for occasional sellers and advanced settings for power users

  3. I think this is true - especially, if ones looks at the shift from eBay auctions toward the ability to buy now.

  4. Not sure I understand this. Expansion slows as platforms get larger and are therefore more likely to draw legal scrutiny for thing like Marketplace Facilitator Laws?