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Growing Supply and Demand in a Marketplace

A marketplace is an online platform that connects suppliers with buyers. Its purpose is to bring together two groups of people who both have something to offer each other. By facilitating the exchange of goods and services, a marketplace has the potential to benefit both parties involved—suppliers and buyers—by providing them with increased access to what they need or are looking for. The key to success for a marketplace is growing supply and demand. Let’s take a look at how this can be done.

How to Focus on Creating Supply

Creating supply in a marketplace means attracting providers who can offer valuable services or products for sale. When building a successful marketplace, it’s important to focus on growing supply first, as this will help create more opportunities for buyers. Here are some examples of companies that focused on creating supply first: Eventbrite, Lyft, DoorDash, Etsy, Caviar, and Instacart.

Common Levers for Success When Growing Supply

When growing the supply side of your marketplace, there are several levers you can pull in order to increase success. These include using incentives to attract both suppliers and buyers (e.g., price discounts or loyalty rewards), leveraging existing data/resources to identify potential suppliers and buyers (e.g., referrals or market research surveys), creating an easy-to-use platform with features that make it attractive to both sides of the marketplace (e.g., mobile apps or automated payment systems), and developing effective marketing campaigns targeting both sides of the marketplace (e.g., email campaigns or social media outreach). All of these levers should be taken into account when attempting to grow your business’s supply side. one another by finding what they need from each other in an efficient manner . By providing customers with increased access , businesses can benefit by increasing their customer base . Additionally, customers will benefit from being able to find what they need without having to search through numerous sources . When it comes down to it , the key element for a successful online marketplace is growing supply and demand .


Building an online marketplace requires careful planning and execution if you want it to be successful. The key element in any successful online marketplace is creating a balance between supply and demand; if either side becomes too large compared with the other then your business runs the risk of becoming unsustainable over time due largely in part because there won’t be enough customers or suppliers interested in participating anymore . To ensure success, focus on growing supply first before focusing on demand as this will help create more opportunities for buyers while also allowing you leverage various levers such as incentives , data/resources , platforms , and marketing campaigns that can help attract suppliers and buyers alike . With an understanding of these elements , project founders , CEOs , or anyone else looking launch their own online marketplace can do so successfully .

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