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The economics of manufacturing marketplaces

Manufacturing marketplaces take 25–40% of what the buyer pays before the shop sees a dollar. Here's how the economics actually work — and what it means for the shops doing the cutting.

Follow the money

When a buyer pays $1,000 for a CNC part through a manufacturing marketplace, here's approximately where that money goes:

Xometry (publicly traded, XMTR)

Xometry's marketplace model takes a significant gross margin on every job routed through their platform. On a $1,000 job, the shop doing the work typically receives $600–700. The rest covers Xometry's quoting engine, platform operations, sales, and overhead. Despite this margin, the company has historically operated at a net loss — the platform costs more to run than the spread covers.

Fictiv (acquired by MISUMI)

Fictiv runs a managed supply chain model — more hands-on than Xometry, with Fictiv employees managing quality and logistics. That additional layer costs money, and the buyer-to-shop spread is wider as a result. The managed model commands premium pricing, and Fictiv has historically operated at a significant loss despite strong revenue growth.

Protolabs (publicly traded, PRLB)

Protolabs runs a hybrid model: in-house factories for standard work plus an outsourced network via Hubs for everything else. The in-house work carries strong margins. The outsourced work follows marketplace economics — the network partner receives a fraction of what the buyer pays, similar to the Xometry model.

Why this matters for precision work

For commodity prototyping — standard aluminum parts with commercial tolerances — a 35% platform take is annoying but survivable. The parts are simple, the tooling is standard, and cycle times are short.

For precision work — tight tolerances, tool steel, EDM, Swiss turning — the math breaks down. These jobs require expensive tooling, skilled operators, slower cycle times, and quality inspection. A 35% cut on top of those real costs means the shop is either losing money or cutting corners. There's no third option.

The Axhera model

Axhera doesn't take a percentage of every transaction. We're a capacity network — we connect buyers with shops that have the right machines and open capacity, and the shop quotes and invoices directly. The shop keeps 100% of the job revenue.

This works because our cost structure is fundamentally different. We don't manage production, handle logistics, or operate manufacturing centers. The shops do what they're built to do. We provide the infrastructure that makes them visible to the buyers who need their specific capabilities.

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