In the ever-evolving landscape of internet marketplaces, understanding take-rates—the commission fees charged by platforms for facilitating transactions—is crucial for both investors and businesses. This report, led by research analyst Ralph Schackart analyzes public and private companies, offering insights into current trends and benchmarks.
This comprehensive analysis, now in its fourth iteration since the first publication in 2018, categorizes companies into 14 industry verticals, ranging from apparel to ticketing. Each category includes an overview, monetization rates, and recent industry trends.
The methodology for calculating commission rates on both the demand and supply sides of transactions remained consistent with previous reports. However, the take-rates presented may skew higher due to William Blair's specific calculation methods. For instance, one company's public financial filings indicate a take-rate for fiscal 2023, but William Blair’s methodology calculates it at a higher percentage. This discrepancy is most notable in the ridesharing, online travel, and food delivery sectors.
The primary goal of this report is to provide a comprehensive benchmark study, analyzing varying internet companies' take-rates by vertical and comparing trends from William Blair’s 2022 report. Notably, e-commerce specialty saw the largest increase in take-rate, followed by education and broader e-commerce. Conversely, beauty and wellness, as well as restaurant and delivery, experienced the largest declines. Overall, seven marketplaces increased their average take-rates, one remained flat, and five declined.
As of the report's publication, nearly two-thirds of the companies analyzed were private. The average total take-rate increased from the 2022 report, potentially indicating greater pricing power in a post-COVID-19 environment. Total take-rates ranged from a low to high percentage, with a median percentage.
Education, beauty and wellness, and apparel/consignment verticals had the highest average total take-rates. These verticals also topped the list in William Blair’s 2022 report.
William Blair’s 2024 analysis included 319 companies, down from 435 in 2022, primarily due to the exclusion of cryptocurrency trading and non-fungible token marketplaces.
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