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The seller side in a marketplace is often considered the harder side due to several reasons:
Firstly, attracting sellers is challenging because they often have more at stake. They need to invest time, resources, and sometimes money to list their products or services. They also need to trust that the platform will protect their interests and ensure they get paid.
Secondly, sellers are usually fewer in number than buyers. This means each seller is more valuable to the platform, and losing one can have a significant impact.
Finally, sellers often have more options for platforms to sell on, so they can be more selective. This means the marketplace needs to offer competitive features and benefits to attract and retain them.
In contrast, buyers usually have lower barriers to entry and are more numerous, making them the easier side to attract.
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When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it to be worth anything. So how do you start the very...
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Chen also distinguishes between the easy and hard sides of a given network. To solve the Cold Start Problem, products must, above all else, attract the hard side—sellers on a marketplace, content creators on a video platform, or in the case of Tinder, attractive women. Tinder launched on the University of Southern California campus. The founders leveraged their popular friends to promote the app at parties. Students had to download Tinder to allow party access. The next day, hundreds of hungover, like-minded students had a second chance at love via Tinder.
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