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Churn Rate

The share of customers who stop using your marketplace over a period.

What it is

Churn Rate measures the share of customers who stop using your marketplace within a period. High churn quietly caps growth, since every new cohort has to refill the ones you lost before the business moves forward. Diagnose it by side and cohort: buyer churn often points to thin supply, while seller churn usually points to too few sales.

Formula

Churn Rate = (Customers Lost / Total Customers at Start of Period) × 100