Purchase cycle in a marketplace

The purchase cycle of a marketplace is how often transactions occur. This factor is important for estimating your marketplace growth potential and the number of participants you need to get onboard for achieving a certain level of cash flow. Many marketplaces attack purchasing cycles that are too infrequent for the marketplaces to be worth pursuing. A marketplace for car rental probably will have fewer purchasing cycles than successful eCommerce marketplaces which offer every use of products like food. Knowing the purchasing cycles pattern allows defining the best pricing model for the marketplace to be successful.