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Better, Cheaper, More Convenient

Rob Go

Either you need some structural cost advantage that others can’t match, or you need to be generating revenue in a very different way that subsidizes your lower product margins. To be successful selling “cheaper” I think one of two things needs to happen. An example of this is the market for wine.

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All GMV is not created equal

A Crowded Space

Weak marketplaces suffer from disintermediation, pricing pressure, and destructive competition. These factors tend to revolve around the type, size, quality, and frequency of matching that happens in a marketplace as well as the nature of the goods or services involved. This comes back to the value of the match.