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Listings on a second-hand marketplace grew 40%, but sales grew only 5%. What's going on, and what would you do?

How to approach it

Supply outgrew demand or matching got worse. Check whether buyers can find the new listings and whether those listings are good.

How a strong answer opens

“Supply grew much faster than sales, so either buyers can't find the new listings or the listings aren't good. I'd find out which before doing anything.”

Outline of a strong answer

Try answering out loud for a few minutes before you open this.

  1. Confirm data and timeframes
  2. Check listing quality: price, photos, categories
  3. Check demand: buyer traffic and searches
  4. Check matching: search results, conversion
  5. Look at seller experience: unsold items and churn risk
  6. Recommend fixes on the weakest link

Where this question usually goes wrong

Celebrating listing growth or buying more buyer traffic before checking listing quality and whether search surfaces the new items.

Learn the method

Diagnosing a metric drop in Module 2, Metrics and execution.

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