Key Takeaways
- • Andreessen Horowitz's fourth annual Marketplace 100 (2023 edition), written by Olivia Moore and Zach Cohen, ranks the largest consumer-facing marketplace startups and private companies by annual gross merchandise volume (GMV), using data from Consumer Edge for the first time.
- • Thirty-four newcomers entered the list, including five top-20 debutants (SSENSE, Apmex, Slice, DHGate, Zazzle) and RockAuto, which ranked #7 as the highest-ranking newcomer.
- • Only four companies exited the list in 2022, versus a record 19 graduations the prior year: Wag and Getaround went public via SPAC, while TCGPlayer (acquired by eBay) and YourMechanic (acquired by Wrench) exited via acquisition.
- • Consumer behavior shifted toward repair over replacement: high new and used car prices and an estimated 8% to 9% decline in U.S. vehicle sales in 2022 drove growth in car-parts marketplaces, with the automotive category rising about 50% year over year.
- • Live shopping and curated platforms gained share: Whatnot climbed to #9, and 38% of newcomers were in shopping, versus 5% the prior year, while Temu, though ineligible for the list because its parent Pinduoduo is public, would have ranked in the top 10 on an annualized basis.
Summary
The 2023 a16z Marketplace 100 examines where consumer marketplace businesses are heading after three years of economic volatility. The ranking, which a16z calls its fourth annual edition, features nearly three dozen newcomers spanning refurbished electronics, precious metals and sustainably raised meat. This year's list is powered by Consumer Edge, a consumer spending analytics provider, which the authors say affords a more comprehensive view of a greater breadth of companies than prior years. The authors caution that some newcomers are not startups: Zazzle, Apmex, DHGate and RockAuto have each been operating for more than 15 years, and part of the reshuffle near the top reflects the change in data source rather than market movement alone.
The list also reflects a shift in exits. In 2022, only four companies left the ranking, compared with a record 19 graduations through IPO, SPAC or acquisition in the prior year. Wag and Getaround went public through SPAC mergers, while eBay acquired TCGPlayer and Wrench acquired YourMechanic. The authors attribute the slowdown to a volatile 2022 public market that compressed valuations and kept companies private, along with a decline in marketplaces acquiring rivals to lock down categories.
In shopping, the authors note that ecommerce penetration has returned to pre-pandemic levels, with an approximate split of 85% brick-and-mortar and 15% online. Interactive and gamified formats are gaining ground. Whatnot, a live-shopping platform, rose 73 spots last year to #9, and more than 100 users earned close to $1 million each on the platform in 2022. SSENSE, a fashion marketplace serving more than 700 luxury and independent retailers, debuted at #11. Temu, the discount shopping app owned by Pinduoduo, was excluded from the list for being publicly owned, but the authors say that annualized data from its first four months would have placed it in the top 10.
The automotive category was another focus. Three freshmen, RockAuto (#7), PartsGeek (#26) and CarID (#27), are car-parts marketplaces. The authors link this trend to elevated vehicle prices: new cars sold for an average of $700 over MSRP in the first half of 2022, and used car prices reached record highs in January and again in July 2022. Auto sales fell to their lowest level in nearly a decade, and consumers responded by repairing existing vehicles rather than buying new ones.
The list also reflects a shift in exits. In 2022, only four companies left the ranking, compared with a record 19 graduations through IPO, SPAC or acquisition in the prior year. Wag and Getaround went public through SPAC mergers, while eBay acquired TCGPlayer and Wrench acquired YourMechanic. The authors attribute the slowdown to a volatile 2022 public market that compressed valuations and kept companies private, along with a decline in marketplaces acquiring rivals to lock down categories.
In shopping, the authors note that ecommerce penetration has returned to pre-pandemic levels, with an approximate split of 85% brick-and-mortar and 15% online. Interactive and gamified formats are gaining ground. Whatnot, a live-shopping platform, rose 73 spots last year to #9, and more than 100 users earned close to $1 million each on the platform in 2022. SSENSE, a fashion marketplace serving more than 700 luxury and independent retailers, debuted at #11. Temu, the discount shopping app owned by Pinduoduo, was excluded from the list for being publicly owned, but the authors say that annualized data from its first four months would have placed it in the top 10.
The automotive category was another focus. Three freshmen, RockAuto (#7), PartsGeek (#26) and CarID (#27), are car-parts marketplaces. The authors link this trend to elevated vehicle prices: new cars sold for an average of $700 over MSRP in the first half of 2022, and used car prices reached record highs in January and again in July 2022. Auto sales fell to their lowest level in nearly a decade, and consumers responded by repairing existing vehicles rather than buying new ones.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.