The adage “Build it, and they will come,” doesn’t work quite well for the P2P marketplace. I have seen startups expending significant energy and money in seeding sellers onto their platforms. However, in the absence of credible buyers, the efforts seem to go in vain.
26:1isthe ratio of buyers to sellers on the Taobao marketplace of Alibaba.com and this figure demonstrates the benefits to prospective sellers to join the listing platform. There is a trade-off in not meeting the large user needs if there are few sellers to showcase the products, but I have seem that users don’t deride the P2P marketplace just because they couldn’t see as many listings as they could on other well-established marketplaces. With a strong focus on curated listings and an effective marketing campaign for a specific TA, the young venture can still build its user base organically without worrying too much about high user attrition.