Hi 👋 — Companies like Booking.com and Etsy earn a fee for connecting buyers and sellers. This post looks at take rates, pricing strategy, and the tools marketplaces use to increase them. Thanks for reading.

Take Rates 101

Gross merchandise volume (GMV) is the lifeblood of a marketplace. It measures transaction value and is a key metric for operators and investors. For example, Airbnb’s GMV is the number of nights booked times the average price per night. To grow GMV, Airbnb needs some combination of higher volumes (nights booked) and higher prices (average daily rate).