Marketplace Engineering: Metrics for Two-Sided Products
A marketplace CTO told me the line I keep hearing: "My supply team ships fast, my demand team ships fast, and GMV still stagnates." The DORA dashboards were green on both sides. The matching engine was not. Two-sided products have a metric gap that single-sided SaaS doesn't: engineering output on one side of the marketplace only creates business value if it's matched by output on the other side.
Andreessen Horowitz's marketplace framework ranks liquidity — the probability that a listed item actually transacts within a window — as the single best predictor of marketplace health. That probability is an engineering outcome, not a marketing one. When search latency rises by 200ms, listed-item conversion drops measurably. When seller onboarding takes 14 days instead of 4, supply growth curves flatten within a quarter.