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Which marketplace metrics actually matter at the start?
Plus, the top tools for tracking metrics on your Sharetribe marketplace
Fiona Burns
June 19, 2025
Hey - it’s Fiona
It’s been a busy one over here. I’ve been juggling several client projects (including a fun homepage redesign and a complex booking flow) while also travelling to Warsaw for a few days. I somehow managed to keep my inbox at zero for most of it, which feels like a small miracle.
Let’s get into this week’s question.
QUESTION OF THE WEEK
Which marketplace metrics actually matter at the start?
When you’re launching a marketplace, it’s tempting to track everything. Page views, bounce rates, Instagram followers, signups. But not all metrics are equal. In the early days, the wrong numbers can give you a false sense of progress.
So which ones should you actually care about?
Here are three I look for when helping early-stage founders validate and grow their marketplace:
1. Activation rate
How many of your users are doing the thing your marketplace is designed for? For providers, that might mean creating a listing. For customers, it could be making a booking or sending a message. A high signup number looks good on paper, but if no one is activating, you’ve got a leaky bucket.
What to do if it’s low? Try simplifying your onboarding journey, showing social proof, or breaking the process into bite-sized steps. Even a small improvement here can unlock growth.
2. Time to first transaction (or intent)
This one tells you how quickly users are finding value. If it's taking too long for someone to complete a booking or post a listing, they’ll likely drop off before they ever return. Even soft signals like saving a listing, asking a question, or favouriting something can count as early intent.
Reducing friction and showing clear next steps (e.g. "Add your availability" or "Browse listings near you") can speed this up and improve retention in the long run.
3. Ratio of supply to demand (or vice versa)
Marketplaces live and die on balance. Too much supply with no demand? Your providers lose faith. Too much demand but not enough listings? Your customers disappear. This is especially tricky in local or niche marketplaces where inventory is thin.
Tracking this ratio helps you focus your energy. If you’re provider-heavy, double down on attracting customers. If you’ve got demand but no supply, consider reaching out manually or offering incentives to get new listings live.
At this early stage, these metrics aren’t just about performance. They’re signals that tell you whether your marketplace model is working. Are people getting value? Are they coming back? Are they telling their friends?
Vanity metrics (like pageviews or signups) might feel good, but they rarely tell you what’s actually broken — or what to fix next. Stick to the signals that tie directly to user behaviour and marketplace health. You’ll be able to make better product decisions, spot friction early, and avoid building features no one needs.
—> ✉️ Reply with your questions and I’ll answer them in a future issue.
TOOL TIPS
Tracking metrics on your Sharetribe marketplace
If you’re using Sharetribe, the built-in analytics are pretty limited. But here are some helpful tools to get better insights without needing a developer on hand:
Plausible
A privacy-friendly alternative to Google Analytics. Easy to set up, with clean dashboards that show the essentials: where your users are coming from, which pages they visit, and what converts.
Hotjar
Great for watching real user behaviour. Use it to spot where people are getting stuck or dropping off. The heatmaps and session recordings can reveal usability issues that numbers alone can’t.
Lemonado
Built specifically for Sharetribe marketplaces. It offers pre-made analytics dashboards tailored to things like listings, bookings, supply/demand balance and onboarding flow. You can get started quickly with their plug-and-play templates.
Mixpanel
Perfect if you're running a custom frontend on top of Sharetribe and want deeper tracking. Helps you monitor funnels, retention, and key user actions like sending messages or posting listings.
—> ✉️ Send me your favourite tools and I’ll feature them here.
DESIGN SNIPPETS
Here are a few interesting reads if you're thinking about metrics, growth or marketplace UX:
Fiona Burns
Whenever you’re ready, there are two ways I can help you:
Marketplace idea validation - Get a research-backed, 15–20 page validation report assessing market demand, competition, monetisation, and customer acquisition, so you can move forward with confidence. Ideally suited to founders who are still validating their idea and aren’t ready to invest in building just yet.
Sharetribe configuration - I can set and fully configure your Sharetribe marketplace using the no-code tools available in the Sharetribe Console. This is best suited to founders who are ready to launch a proof-of-concept at a low cost.
UX/UI design - I provide a tailored UX/UI design service for marketplace businesses, including custom UI and bespoke features. This is aimed at founders who are ready to invest in a high-quality, custom-designed marketplace.
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