Why is seller side in marketplace the harder side?

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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Tell me more about why it is beneficial to attract the hard side first

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Attracting the hard side first in a network is beneficial for several reasons.

Firstly, it helps to solve the Cold Start Problem. This is a common issue in network-based businesses where the value of the service increases with the number of users. By attracting the hard side first, you can quickly build a user base that makes your service more attractive to the easy side.

Secondly, the hard side often provides the core value of the service. For example, in a marketplace, sellers provide the products that buyers want. In a video platform, content creators provide the videos that viewers watch. By attracting the hard side first, you ensure that your service has value to offer to the easy side.

Finally, attracting the hard side first can create a sense of exclusivity and desirability. This can make your service more attractive to the easy side, encouraging them to join.

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The Cold Start Problem

When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it...

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