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. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement.
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
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.