What is Cross-Sell Rate, and how do you calculate it?
In short – Percentage of transactions that include additional products or services. A key marketplace metrics you should track.
Cross-Sell Rate Formula
Cross-Sell Rate = (Number of Orders with Cross-Sells ÷ Total Number of Orders) × 100%
Cross-Sell Rate measures the effectiveness of strategies aimed at encouraging customers to purchase additional, related products or services. It reflects the marketplace's ability to increase revenue per transaction through cross-selling.
A higher Cross-Sell Rate can significantly boost revenue without increasing customer acquisition costs. Monitoring this metric helps evaluate the success of cross-selling initiatives and informs strategies to bundle products or recommend complementary items.
How can you find your Cross-Sell Rate?
You should generally be able to calculate your Cross-Sell Rate 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