What is Average Listing Price, and how do you calculate it?
In short – Average price of items listed on the marketplace. A key marketplace metrics you should track.
Average Listing Price Formula
Average Listing Price = Total Listing Prices ÷ Number of Listings
Average Listing Price indicates the general price level of products on the marketplace. It helps in understanding the market positioning and customer segment.
Monitoring changes in average listing price can reveal shifts in seller strategies or market trends, guiding pricing and marketing efforts.
How can you find your Average Listing Price?
You should generally be able to calculate your Average Listing Price with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Order Frequency
Average number of orders placed by a buyer within a specific period
Cross-Sell Rate
Percentage of transactions that include additional products or services
Supply-Demand Ratio
Ratio of available listings to active buyers
Listing Quality Score
A metric evaluating the quality of product listings based on predefined criteria
User Net Adds
Net increase in the number of users over a specific period