hierarchy-of-marketplaces

Marketplace defensibility is built by applying the Hierarchy of Marketplaces framework across Focus, Tip, and Dominate levels. You use growth patterns and decision checklists to diagnose tipping potential, relying on metrics like Happy GMV to guide scalable expansion.

Marketplace tipping readiness is indicated by happiness signals and saturation within a constrained market. You measure retained transactions and contribution profit rather than raw GMV, using specific checklists to confirm your two-sided marketplace has reached Level 2 saturation.

Marketplace expansion sequencing follows a two-quarter plan to tip, mapped using the included playbooks and references. You outline a subsequent expansion path from the constrained market by confirming Level 1 readiness and saturation signals first.

Happy GMV measures retained transactions, providing a stronger signal of marketplace growth than total GMV. It guides decisions on tipping conditions and dominance potential by focusing on actual user retention and contribution profit.

Constrain your marketplace to a specific thimble during the Focus phase to achieve saturation before attempting to tip. You confirm happiness signals within that constrained market to build defensibility prior to planning broader expansion.