home / skills / refoundai / lenny-skills / marketplace-liquidity
This skill helps you diagnose and improve marketplace liquidity by diagnosing constraints, defining metrics, and designing targeted interventions.
npx playbooks add skill refoundai/lenny-skills --skill marketplace-liquidityReview the files below or copy the command above to add this skill to your agents.
---
name: marketplace-liquidity
description: Help users build and manage marketplace liquidity. Use when someone is working on a marketplace business, struggling with supply/demand balance, trying to improve match rates, or asking how to reach critical mass in a two-sided market.
---
# Marketplace Liquidity Management
Help the user build and manage marketplace liquidity using frameworks from 4 product leaders.
## How to Help
When the user asks for help with marketplace liquidity:
1. **Understand the marketplace type** - Ask about their supply/demand dynamics, how fragmented the market is, and whether needs are uniform or heterogeneous
2. **Diagnose the constraint** - Determine if they're supply-constrained, demand-constrained, or facing a matching problem
3. **Define liquidity metrics** - Help them establish clear measures of marketplace reliability and fill rates
4. **Design interventions** - Guide them on where to focus to improve liquidity (geographic focus, supply acquisition, demand generation, matching quality)
## Core Principles
### Liquidity is how marketplaces win
Benjamin Lauzier: "Liquidity is how marketplaces win. It's this measure of your ability to match buyers and sellers efficiently." Focus on the core metric of how reliably you can connect supply with demand. This is the foundational metric that determines marketplace success or failure.
### Liquidity = reliability of the marketplace
Dan Hockenmaier: "How reliable is the marketplace? If the consumer is looking for something or supplier is looking to sell something, how often can they do that thing they're trying to do?" Define liquidity as fill rate - the percentage of times buyers find what they want and sellers find buyers. Make this your number one metric.
### Marketplace management is whac-a-mole
Ramesh Johari: "Marketplaces are a little bit like a game of whac-a-mole... a lot of marketplace management is moving attention and inventory around." Expect constant rebalancing between supply and demand across different segments and geographies. Build systems to reallocate attention and inventory dynamically.
### No supply without demand, no demand without supply
Tim Holley: "If you've got supply without demand, then you don't really have a marketplace. If you've got demand and no supply to meet it, then you also don't have a marketplace." Watch for the "graduation problem" where successful sellers leave the platform. Use data to guide supply toward areas of unmet demand.
## Questions to Help Users
- "How do you define liquidity for your marketplace? What's your fill rate?"
- "Are you currently supply-constrained or demand-constrained? Does this vary by geography or category?"
- "How fragmented are the needs in your marketplace - are they uniform or highly heterogeneous?"
- "What happens when you add more supply? Does it immediately get absorbed by demand?"
- "Are you seeing a 'graduation problem' where successful suppliers leave your platform?"
## Common Mistakes to Flag
- **Growing both sides equally** - Usually one side is the constraint. Focus resources on the bottleneck
- **Ignoring geographic/category fragmentation** - National liquidity metrics can hide severe local imbalances
- **Not measuring fill rate** - Without a clear liquidity metric, you can't manage toward it
- **Over-expanding before reaching local density** - It's better to be highly liquid in one market than illiquid across many
## Deep Dive
For all 4 insights from 4 guests, see `references/guest-insights.md`
## Related Skills
- Measuring Product-Market Fit
- Designing Growth Loops
- Pricing Strategy
- Retention & Engagement
This skill helps product teams build and manage marketplace liquidity so buyers reliably find sellers and sellers reliably find buyers. It focuses on diagnosing whether a marketplace is supply- or demand-constrained, defining clear liquidity metrics, and designing targeted interventions to improve match rates. The guidance is practical and event-driven: measure fill rate, find the bottleneck, and concentrate resources where they unblock matches fastest.
I first help you classify your marketplace type and fragmentation (geographic, category, or use-case). Then we diagnose the core constraint: supply, demand, or matching quality. Next we define one or two liquidity metrics (e.g., fill rate, time-to-match, local depth) and map interventions—supply acquisition, demand generation, pricing adjustments, or matching improvements—against those metrics. Finally we set short experiments and operational rules to rebalance attention and inventory dynamically.
What single metric should I track for marketplace liquidity?
Track fill rate (percentage of buyer requests successfully matched) segmented by geography and category; supplement with time-to-match for speed insights.
How do I know which side to subsidize?
Run diagnostics by segment: if buyers regularly fail to find supply, prioritize supply acquisition; if sellers sit idle, focus on demand. Use small experiments to validate before scaling.