What is Fill Rate, and how do you calculate it?
In short – Percentage of customer demand that is met without backorders or stockouts. A key marketplace metrics you should track.
Fill Rate Formula
Fill Rate = (Orders Fulfilled Immediately ÷ Total Orders) × 100%
Fill Rate measures the marketplace's ability to fulfill customer orders from available inventory. High fill rates indicate effective inventory management.
Maintaining a high fill rate improves customer satisfaction and reduces lost sales. This metric is important for supply chain and inventory planning.
How can you find your Fill Rate?
You should generally be able to calculate your Fill 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